360 DigiTech: Favorable Risk Reward At Current Price


  • The prolonged regulatory overhang on Chinese online lender is likely approaching the last inning.
  • Improving credit quality and lower funding cost will mitigate impact on lower APR.
  • 360 DigiTech performed better in credit underwriting compared to its competitors.
  • Favorable risk reward at current price.

The Statue of Justice - lady justice or Iustitia, Justitia the Roman goddess of Justice.

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Regulatory Environment

Since 2020, the Chinese government has expedited regulation on internet finance, putting pressure on China online lenders including 360 DigiTech, Inc. (NASDAQ:QFIN). One of the most significant regulation is China won’t allow online

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Company presentation

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Company presentation

5-Year P/E Band

5-Year P/E Band (Bloomberg)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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