Macroeconomic and Market Analysis - The State Council Information Office will hold a press conference on January 14, 2026, to introduce the full-year import and export situation for 2025, which is significant for assessing China's external demand performance and related industry prosperity [1][5] Sector Hotspots and Rotation - The U.S. has relaxed export controls on Nvidia's H200 chips to China, as announced on January 13, 2026. This adjustment, previously indicated by former President Trump, allows for the sale of this AI chip, with the U.S. Department of Commerce responsible for approval and security review, potentially benefiting the domestic semiconductor industry and AI-related sectors [2][6] Peripheral Markets and Related Assets - On Tuesday, U.S. stock indices closed lower, with the Dow Jones down 0.80%, Nasdaq down 0.10%, and S&P 500 down 0.19%. Large tech stocks showed mixed results, with Intel up over 7% and AMD up over 6%, while Micron and Qualcomm fell over 2%. The Nasdaq Golden Dragon China Index dropped 1.84%, with notable declines in Chinese concept stocks, which may exert pressure on A-share sentiment [3][7] Commodity Market Dynamics - In domestic commodity futures, methanol rose 2% to 2308.00 yuan, fuel oil increased 5% to 2560.00 yuan, silver surged 6% to 22336.00 yuan, and tin climbed 4% to 398380.00 yuan, indicating significant volatility in energy and base metals [4][8] - Internationally, spot gold reached a historical high of $4631.34 per ounce, with New York futures surpassing $4640 per ounce. Spot silver and New York futures both exceeded $89 per ounce, reflecting heightened market risk aversion [4][8]

Group 1 - The Nasdaq Golden Dragon China Index saw a significant increase of over 4% in early trading, indicating a strong performance of Chinese stocks in the US market [1] - Notable individual stock performances included Baidu and GDS, both rising over 10%, while other companies like DDL and VNET also experienced substantial gains of over 8% [1] - The overall trend reflects a positive sentiment towards Chinese companies, with multiple stocks showing increases of 6% or more, suggesting a potential recovery or bullish outlook in the sector [1] Group 2 - Other companies such as Tencent Music, iQIYI, and Oriental also saw their stock prices rise by over 4%, contributing to the overall positive performance of Chinese stocks [2]

Core Insights - The financial sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Major oversold stocks in the financial sector have an RSI near or below 30, indicating potential undervaluation [2] - Noah Holdings Limited (NYSE:NOAH) has an RSI value of 26.1, with a recent stock price of $9.64, despite reporting a 52.2% year-over-year increase in non-GAAP net income to RMB229.1 million [7] - Ready Capital Corp (NYSE:RC) also has an RSI value of 26.1, with shares closing at $2.22, following a 12% decline over the past month [7] - X Financial (NYSE:XYF) has an RSI value of 25.2, with a stock price of $6.63, experiencing a significant 41% drop in the past month [7] Group 2: Company Performance - Noah Holdings reported net revenues of RMB632.9 million, showing slight sequential growth, while its stock fell approximately 10% over the past month [7] - Ready Capital's third-quarter total net revenue was $275.5 million (RMB1,961.0 million), reflecting a year-over-year increase of 23.9% but a quarter-over-quarter decrease of 13.7% [7] - X Financial's third-quarter results indicated challenges with loan origination and increased delinquency rates, leading to a focus on risk control and maintaining credit quality [7]

The most oversold stocks in the financial sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major oversold players in ...

Macroeconomic and Market Analysis - The central economic work conference emphasizes that expanding domestic demand is the top priority for next year [1][4] - Domestic demand has remained stable this year, contributing 71% to economic growth in the first three quarters, with effective consumption policies showing significant results [1][4] - However, there has been a recent slowdown in consumption and investment growth, indicating the need for continued efforts to boost domestic demand [1][4] Important Announcements from Listed Companies - Vanke announced a proposal to extend the principal repayment date of its fourth tranche of medium-term notes for 2022 by 12 months to December 15, 2026, with interest of 60 million yuan due on December 15, 2025, to be paid within a grace period [2][5] - During the grace period, unpaid principal will accrue interest at 3.00%, while unpaid interest will not accrue additional interest, and the coupon rate will remain unchanged at 3.00% [2][5] - After the market close on December 16, several companies disclosed shareholding changes, with some increasing their holdings and others, including Ningbo Color Masterbatch and Huashu Co., announcing reductions [2][5] Peripheral Markets and Related Assets - On Tuesday, U.S. stock indices showed mixed results, with the Dow Jones down 0.62%, the Nasdaq up 0.23%, and the S&P 500 down 0.24% [3][6] - Major tech stocks mostly rose, with Tesla gaining 3.07% and reaching a new closing high, while Qualcomm fell over 1% [3][6] - The Nasdaq Golden Dragon China Index fell 0.34%, with notable declines in companies like Zhongjin Medical and Kandi Technologies [7] - International oil prices saw WTI crude oil drop 3% to below $55 per barrel, currently at $54.97, while Brent crude fell 2.58% below $59 per barrel [7]

Market Performance - The major U.S. stock indices showed mixed results, with the Nasdaq slightly up while the S&P 500 fell for the third consecutive day [1] - The Dow Jones Industrial Average closed at 48,114.26, down 302.30 points (-0.62%), while the Nasdaq rose by 54.05 points (+0.23%) to 23,111.46, and the S&P 500 decreased by 16.25 points (-0.24%) to 6,800.26 [2] Sector Performance - Large technology stocks experienced gains, with Tesla rising over 3%, reaching a historic high and increasing its market value by $48.5 billion (approximately 341.5 billion RMB) to $1.63 trillion, surpassing Broadcom to become the seventh-largest company in the U.S. by market capitalization [2] - The oil and energy sectors faced significant declines, with British Petroleum dropping over 4% [2] - Cryptocurrency and computer hardware sectors saw notable increases, with Hut 8 rising nearly 4% and Strategy and SanDisk both up over 3% [2] Chinese Stocks - The Nasdaq Golden Dragon China Index fell by 0.34%, with several Chinese stocks experiencing declines, including Yipeng Energy down 6.5% and Lingzhang Portal and Xiaoying Technology both down over 4% [2] - Conversely, Dingdong Maicai surged over 11%, Pony.ai increased by over 7%, and Zhihu rose by over 3% [2] Commodity Market - The oil market experienced a significant drop, with WTI crude oil futures falling below $55 per barrel for the first time since February 2021, closing down over 2.8% [3][4] - Year-to-date, WTI crude oil futures have declined approximately 22%, marking the worst annual performance since 2018, while Brent crude has dropped nearly 20%, the worst since 2020 [4] Cryptocurrency Market - Following a significant drop, the cryptocurrency market saw a near-total rebound, with Bitcoin rising above $87,000, up 2.21% [6] - Despite the rebound, analysts suggest that Bitcoin may soon reach new lows, potentially falling below $80,000 [5]

Core Insights - The stock of Xiaoying Technology (XYF) opened at $7.12 per share, reflecting a 3.04% increase on December 15, with a total market capitalization of $278 million [1] Financial Performance - As of September 30, 2025, Xiaoying Technology reported total revenue of 6.172 billion RMB, representing a year-on-year growth of 48.25% [1] - The net profit attributable to shareholders reached 1.407 billion RMB, showing a year-on-year increase of 21.93% [1] Company Overview - Xiaoying Technology is a well-known licensed fintech company in China, committed to empowering inclusive finance through technology, with a mission to create a positive impact in the financial sector [1]

Core Insights - The overall revenue of the six listed fintech companies showed steady growth, but profitability exhibited significant divergence, with some companies experiencing a reverse trend between revenue and net profit [3][4][6] - The implementation of new regulations has led to a concentration of resources among compliant leading firms, while smaller institutions face increased compliance costs and reduced collaboration opportunities [6][10] Revenue Performance - Q3 revenue figures indicate that Qifu Technology led the industry with 5.21 billion yuan, a year-on-year increase of 19.1%, while other companies like Xinye Technology and Yirendai reported revenues between 1.96 billion to 3.49 billion yuan, with growth rates ranging from 1.8% to 23.9% [3][4] - Conversely, Lexin's revenue decreased to 3.42 billion yuan year-on-year [3] - Net profit trends were more complex, with Qifu Technology's net profit declining despite revenue growth, and Yirendai also showing a decrease in net profit [3][4] Market Dynamics - As of the end of September, Qifu Technology held the largest loan balance at 138.1 billion yuan, followed by Lexin and Xinye Technology, indicating a clear trend of resource concentration among leading platforms [4][6] - The new regulations are expected to further enhance market concentration, with leading firms gaining more market share as smaller platforms exit the market [4][6] Regulatory Impact - The new lending regulations, effective from October 1, have begun to influence the industry, pushing resources towards compliant firms and increasing operational challenges for smaller institutions [6][10] - The regulations require banks to unify various fees into a comprehensive financing cost, strictly capping it at an annualized rate of 24% [6][10] Strategic Adjustments - Companies are shifting their business models in response to the new regulations, with some moving towards a heavier capital model while others are enhancing their ecosystem strategies [6][7] - Lexin's ecosystem strategy has shown resilience, with significant growth in its installment e-commerce platform and a focus on small and micro customer segments [7][8] International Expansion - Several companies are actively pursuing international growth, with Xinye Technology reporting that 25% of its total revenue now comes from overseas, and other firms like Yirendai and Qifu Technology also exploring opportunities in Southeast Asia and other regions [7][8] Future Outlook - The industry is expected to face short-term pressures due to ongoing adjustments, but there is optimism for long-term sustainable growth as companies enhance risk management and operational efficiency [10][11] - The focus is shifting from rapid expansion to refined operations and technological empowerment, with AI applications becoming increasingly integral to business strategies [10][11]

Core Viewpoint - The essence of finance is to serve the real economy and safeguard people's well-being, which is also the unwavering commitment of Xiaoying Technology in fulfilling its social responsibility [2] Group 1: Social Responsibility and Financial Inclusion - Xiaoying Technology has released its 2024-2025 Social Responsibility Report, showcasing its commitment to ESG information disclosure and its efforts in promoting inclusive finance, technology safety, and public welfare [2] - The company has initiated programs like "Shining Together: Small Store Support Plan" and "Be Your Own Light: Small Store Shining Plan" to empower small businesses and new citizens, aiming to provide comprehensive support [3] - From January 2020 to June 2025, Xiaoying Technology has served over 9 million small business owners and individual entrepreneurs across 31 provinces, with 40% of users coming from the new citizen demographic [3] Group 2: Technological Innovation and Security - Xiaoying Technology emphasizes technological innovation as a core driver of new productive forces, continuously iterating its technology to enhance financial security [5] - The company has developed the WinSAFE and WinPROT systems to empower the real economy and establish a robust financial security framework, enhancing customer service efficiency and safeguarding data security [5][6] - The WinSAFE system improves customer acquisition and risk assessment, while the WinPROT system focuses on fraud prevention and data security, ensuring a secure service environment for users and partners [5] Group 3: Sustainable Public Welfare Initiatives - Xiaoying Technology's public welfare initiatives focus on rural education revitalization, with the Xiaoying Public Library serving as a cultural hub in Jiangxi, promoting local cultural vitality [7] - The company engages in various social welfare projects, including supporting children's education in impoverished areas of Kenya, demonstrating its commitment to broader social impact [7] - Xiaoying Technology integrates public welfare with consumer rights protection, conducting user education activities that have reached approximately one million people, effectively raising awareness of financial safety [7] Group 4: Future Commitment - Xiaoying Technology is committed to advancing ESG sustainable development principles, focusing on serving the real economy, ensuring user safety, and fulfilling its public welfare mission [8]

Financial Data and Key Metrics Changes - In Q3 2025, total net revenue reached RMB 1.96 billion, reflecting a 23.9% year-over-year increase but a 13.7% decline sequentially from Q2 [6][14] - Income from operations was RMB 331.9 million, down 29.9% year-over-year and 46.4% sequentially, primarily due to higher provisions for credit losses [14] - Net income was RMB 421.2 million, up 12.1% year-over-year but down 20.2% sequentially [14] - The delinquency rates increased, with the 31-60 day delinquency rate rising to 1.85% from 1.16% in Q2 and 1.02% a year ago [7][14] Business Line Data and Key Metrics Changes - The company facilitated and originated RMB 33.64 billion in loans, an 18.7% increase year-over-year but a 13.7% decline sequentially [4][10] - The outstanding loan balance at the end of the quarter was RMB 62.83 billion, up 37.3% from the previous year [10] - Approximately 3.48 million loans were facilitated, representing a 32% increase year-over-year, with an average loan size of RMB 9,654 [10] Market Data and Key Metrics Changes - The active borrower base was approximately 2.44 million, down 14.4% sequentially but up 24.2% year-over-year [10] - The regulatory environment remains stringent, with a focus on consumer protection and responsible lending practices [9] Company Strategy and Development Direction - The company is prioritizing asset quality and risk management over short-term volume expansion, reflecting a strategic shift in response to regulatory pressures [4][9] - There is a commitment to maintaining a compliance-first mindset and adapting to evolving regulatory standards [9][10] - The focus is on cost efficiency and disciplined execution to ensure long-term value preservation [12] Management's Comments on Operating Environment and Future Outlook - Management expects challenges to persist in the coming quarters but remains confident in the company's ability to navigate these with prudence [18] - The outlook for Q4 2025 anticipates total loan facilitation in the range of RMB 21 billion to RMB 23 billion, reflecting a measured pace of origination [17] - Management acknowledges the potential for continued pressure on industry pricing and profitability due to regulatory changes [9][10] Other Important Information - The company repurchased approximately $67.9 million in shares under its buyback program, with about $48 million remaining under the existing plan [16][26] - The balance sheet remains strong, with total assets at RMB 14.69 billion, up 26.4% year-over-year [15] Q&A Session Summary Question: What is the expected take rate for Q4 given the current risk situation? - Management indicated that the new regulatory regime will likely have a material negative impact on volume, margin, and profitability, making it premature to discuss specific take rates [24][25] Question: Is the company considering returning more capital to shareholders? - Management confirmed that capital return remains a key strategy, with ongoing share repurchases and a commitment to maintaining dividends despite industry pressures [26][27] Question: How does management view the regulatory environment going into early 2026? - Management expressed uncertainty about future regulatory actions but emphasized a focus on compliance and consumer protection [32] Question: Can management provide more details on the uptick in delinquencies? - Management acknowledged the increase in delinquencies due to broader economic challenges and indicated that they expect the delinquency rate to continue climbing in the short term [33][34]