LU - Why Shares of LexinFintech Holdings Lufax Holding and 360 DigiTech All Fell Today
Shares of several Chinese fintech companies took a hit Thursday following recent news that the Chinese government plans to intensify its supervision of Chinese companies that trade on U.S. stock exchanges.
Shares of the consumer finance company LexinFintech Holdings Ltd-ADR (NASDAQ: LX) fell 12.7%, while shares of the personal financial services platform Lufax Holding Ltd-ADR (NYSE: LU) fell more than 16%. Additionally, shares of 360 DigiTech Inc (NASDAQ: QFIN) , a digital platform that helps other financial institutions connect with customers, fell nearly 21.5%.
When Chinese companies list on U.S. stock exchanges like the New York Stock Exchange, American investors can purchase shares in them through American depositary receipts (ADR). This year, a lot of Chinese companies have been volatile and seen shares soar higher at times, making them increasingly popular among U.S. investors. In particular, Chinese fintech companies are attractive because of the huge opportunity presented by China's population and economy.
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Why Shares of LexinFintech Holdings, Lufax Holding, and 360 DigiTech All Fell Today