360 Finance Lists $71.5 Million ABS in Shenzhen

The online consumer finance platform tumbled to an all-time low early Friday to $7.58 per share.

Author: Anthony Russo   

360 Finance Inc. (Nasdaq: QFIN) announced Friday that it has issued $71.5 million in asset-backed securities (ABS) that today started trading on the Shenzhen Stock Exchange.

The online consumer finance platform, based in Shanghai, said in a statement today that the security is a two-year consumer loan-related ABS and was issued under the name Tianqi-360 Finance Phase III Trust Benefit Right Asset Support Special Plan. 

The loans are extended by financial institution funding partners including CICC Securities, China Merchants Securities, China Investment Securities, and Western Securities.

According to 360 Finance, this marks the first time a fintech company has issued an ABS in China, following the Chinese New Year festival 2020.

"The successful execution of this financing amid heightened volatility caused by the outbreak of Covid-19 is a clear demonstration of the strength of our brand, the depth of our management, our cutting-edge risk management system and innovative AI technology. Demand from our financial institution funding partners remain very strong,"  Zhiqiang He, the vice president of 360 Finance, said in the statement today.

He added, "We believe it reflects their trust in the quality of the underlying assets. We will continue to monitor the evolving situation and work with our financial institution funding partners to improve operational efficiency and risk management through our technology platform and create long-term value for our shareholders."

Following the announcement, the stock in 360 Finance tumbled to an all-time low of $7.58 per American depositary share. Friday's downward movement represents a 39% decrease from the company's low in the same month last year. However, 360 Finance's stock recovered by midday, up nearly 3% from Thursday's close.

Founded in 2016, 360 Finance provides online consumer finance products to borrowers. As of September, it had 126 million registered users, up 90% from the same month last year.

In the three months through September, 360 Finance's revenue nearly doubled to $361.4 million from the same period in 2018. Net income rose 27% to $102.6 million, or 34 cents per diluted share.