Chinese FinTech Stocks Rise; US lenders fall
In the past week, three of the biggest gainers in financial stocks have been Chinese FinTechs, bolstered by an agreement that gives US authorities access to audit the companies.
Seeking Alpha reported on Saturday (27 August) that Futu Holdings was up 21% this week, with 360 DigiTech following close behind. Both companies could benefit from the waning threat of their American depository shares being delisted in the US, according to the report.
In addition, three of the companies that saw the worst declines were technology-based mortgage or lending firms, which could see losses along with 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 performed well after fiscal fourth-quarter earnings beat consensus estimates.
The report said the biggest decliners included Rocket Companies, parent of Rocket Mortgage, which fell 13% in the past 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 is little chance that they will fall soon, as Federal Reserve Chairman Jerome Powell appears intent on keeping interest rates on hold until inflation starts to ease.
In other market gains news, PYMNTS’ Connected Economy™ 100 index posted a positive return of 2.5% for July, after gaining 8.9% for the month.
Read more: CE100 Index Jumps 8.9% in July as Sezzle, Amazon Lead Gains
This led to year-to-date losses falling to 29.2%. The improvements were helped along by payments-related stocks such as Sezzle and Amazon, which both saw gains.
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 fend off the tougher elements of the current economic climate.
NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS
About: The findings of PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy”, a collaboration with PayPal, analyzed the responses of 9,904 consumers in Australia, Germany, the UK and the US and showed strong demand for a single multi-functional super app instead of using dozens of individuals.
