Jul. 12 at 5:59 PM
$LX I still can't find any specific news or headline behind Friday's move. It could easily be traders front-running the August 1st deadline that forces all China lenders to disclose every facilitation fee. The date has been public for months, but it's now only a few weeks away and represents a major change for the lending industry.
$QFIN and Yiren have always made a large share of their money charging effective interest rates that drifted far above the headline numbers once fees were layered in. They got away with it because borrowers technically volunteered to pay those charges, buried in their contracts. China has now cracked down and as of August 1st, all new loans must show the all-in annualized rate with every fee included. This should barely affect
$LU at all, given its audience and how it markets. If anything, it benefits Lufax, as more and more small and mid-sized players get washed away. Given the book and earning power, LX at and below this price gets interesting.
