Chinese FinTech Stocks Climb; US Lenders Tumble
In the past week, three of the biggest gainers in financial stocks have been Chinese FinTechs, boosted by an agreement that gives U.S. authorities access to audit the companies.
Seeking Alpha reported Saturday (Aug. 27) that Futu Holdings was up 21% this week, with 360 DigiTech following close behind. Both companies were able to benefit from the waning threat of their American depository shares being delisted in the U.S., per the report.
Additionally, three of the companies that saw the worst declines were tech-based mortgage or lending firms, which could see losses along with the rising interest rates. Affirm Holdings saw one of the biggest declines, as it fell 21% after issuing “disappointing guidance,” which came even as the company was doing well after its fiscal Q4 earnings beat consensus estimates.
The report said those that fell the most included Rocket Companies, the parent of Rocket Mortgage, which fell 13% over the last week, and Upstart Holdings, which was down 11%. Other companies that saw declines included Goosehead Insurance and Dun & Bradstreet.
According to Freddie Mac, mortgage rates were up to 5.55% this week. However, there’s not much chance that they’ll drop soon, as Federal Reserve Chair Jerome Powell seems intent on maintaining the rates until inflation starts to drop.
In other news related to market gains, PYMNTS’ Connected Economy™ 100 Index posted positive 2.5% returns for July, having gained 8.9% during the month.
This saw the year-to-date losses slowing to 29.2%. The improvements were helped along by payments-related stocks like Sezzle and Amazon, both of which saw boosts.
Sezzle saw a 176% jump in its share price, with the company saying there had been no material news driving the price. Meanwhile, Amazon’s faster delivery times and improved inventory helped it beat back the harsher elements of the current economic climate.
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