LexinFintech stock rose in US market debut

Shares of LexinFintech Holdings Ltd. rose in its inaugural debut market in the US. Shenzhen-base online lender on Thursday touched its highest level at US$14.88 or up 53 percent by the IPO price that gave the company US$4.51 billion or exceeded the original US$500 million forecast.

The online financial industry in China is booming as Chinese income increases and access to credit cards is limited. LexinFintech sees tougher industry regulation as a positive thing which will help increase barriers to entry of new players.

Tinuku LexinFintech stock rose in US market debut

"People may overreact to the news, but these are rules that will make this sector stronger," said LexinFintech CFO Craig Yan Zeng.

Shares of micro-lenders in China such as Qudian, PPDAI Group and Jianpu Technology whose recent IPOs in US exchanges have been hit hard by the new regulation. Shares of Qudian fell by about 57 percent and PPDAI fell 46 percent since it went public in October, while Jianpu fell 19 percent.

LexinFintech lends to young and adult educated people between the ages of 18 and 36, including loans for online shopping. The CFO said the company's loan was offered at a competitive interest rate of 25 percent, compared to an industry threshold of 36 percent.