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在线翻译:
szdaily -> Markets -> 
Fintech IPO fever wanes as regulators weigh crackdown
    2017-11-13  08:53    Shenzhen Daily

THE euphoria around Chinese fintech listings is starting to wane.

Online lender PPDAI Group Inc. raised US$221 million after pricing its U.S. initial public offering (IPO) below the bottom end of a marketed range, sources said Friday.

Rival Qudian Inc. fell below its offer price the week after its October debut in New York, then bounced back, only to see its stock drop 7.4 percent over the past two days through Friday.

PPDAI priced its offering a week after news that Chinese regulators are considering a crackdown on the country’s cash microlenders in response to claims that some have charged excessive interest rates.

The initial public offering of Qudian helped trigger the regulator’s review of the sector, people with knowledge of the matter said earlier this month.

“One of the things that you’re seeing pretty clearly is the pullback of the risk appetite for these types of lenders,” Christopher Balding, associate professor at Peking University HSBC School of Business, said Friday.

Chinese regulators are right to be concerned about the “very rapid run-up in consumer lending,” he said.

PPDAI priced its sale of 17 million American depositary shares at US$13 apiece, after marketing them at US$16 to US$19 each, sources with knowledge of the matter said.

While Chinese law already limits lending rates to 36 percent annually, regulators are considering drafting rules to specify the cap applies to the cash microlending sector, people with knowledge of the matter said this month.

In its IPO prospectus, PPDAI said total borrowing costs for some of its loan products exceed that level after adding in transaction fees.

PPDAI said it believes it’s in compliance with Chinese regulations, as the actual interest rate it charges is no more than the official ceiling. It warned in its listing documents that there’s no certainty local courts will take the same interpretation.

Investor reception for PPDAI was a sharp change from other recent deals involving Chinese fintech firms, such as the listing of online insurer ZhongAn Online P&C Insurance Co.

ZhongAn priced its US$1.5 billion Hong Kong IPO in late September at the top of a marketed range, after local retail investors subscribed for nearly 400 times the amount of stock they were offered.

(SD-Agencies)

 

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