The coronavirus pandemic has seen fintech transactions taking precedence over cash purchases amid lockdown. For this reason, investors are starting to look for fintech stocks to buy right now. There has been a significant rise in digital payments as people purchase essential goods and other services online. While the fintech space has fully penetrated China, physical cash is still the main medium of exchange globally, until the pandemic.Are Chinese Fintech Stocks Worth The Bet?
When you are looking for fintech stocks to buy, look no further than China. The country has been the first in the world to fully transform into digital payments. That was possible due to the low credit card penetration in the country, enabling them to leapfrog the rest of the world. For some of you who have never crossed the Pacific, fintech is a huge area with massive opportunities to look at. Did you know that out of the world’s top fintech companies, 34 out of 100 came from Asia? In that region, China came out top with 10 companies.
Admittedly, recent events like the Luckin Coffee (LK Stock Report) scandal gave a negative impression of Chinese companies listed in the US. Now, there are no sure bets in the stock markets. But what we can do is to lay out a strategy that we find comfortable with. In any case, we believe the majority of companies really want to make it big here in the US. Given the sharp increase in the use of fintech amid the coronavirus pandemic, are these fintech stocks on your watchlist?
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The Chinese fintech firm Jiayin Group (JFIN Stock Report) is on fire. Shares of JFIN rose more than 700% on what appeared to be a pure momentum move. Although the spike was short-lived, JFIN stock still managed to close almost 100% higher on Wednesday. JFIN stock is suddenly a favorite on the RobinHood platform and has seen more traders jumping on board. With the unemployment rate soaring and business closures on the rise, taking loans online seems like a good idea. And that’s where Jiayin comes into the picture.
The company is announcing the first-quarter results today. For the past month, shares of Jiayin were relatively flat until Monday. Perhaps investors saw a Chinese company FangDD (DUO Stock Report) stock quadrupled the other day. If so, it may be no surprise they were looking for the next Chinese stocks to have a breakout. The baton was passed to Jiayin, who got on board and skyrocketed 700% in a day. The reason for that spike could simply be due to both JFIN and DUO stock reporting their Q1 results this week. DUO report was out yesterday and JFIN is due to report their fiscal report before the opening bell this morning. Is the share price movement of JFIN stock telling us something?Top Fintech Stocks To Watch Before Friday: OneConnect Financial Technology
Next up, OneConnect Financial Technology (OCFT Stock Report) is a leading technology-as-a-service platform for financial institutions in China. The company serves all of China’s major banks and has some impressive numbers to match its dominance in the technology of finance. From their latest quarter, OneConnect reported $81.77 million in revenue, up 29.6% year-over-year.
In the past two years, OneConnect has turned its attention toward Southeast Asia as the region’s financial sector picks up the pace in digital transformation. The region alone could eventually make up 10% of the company’s total revenue. OneConnect’s digital solutions might be exactly what many countries need during this crisis, and this could be a significant revenue stream if done right. The OCFT stock has been climbing steadily year to date and last traded at $15.39 as of yesterday’s close.Top Fintech Stocks To Watch Before Friday: Wins Finance Holdings
Wins Finance Holdings (WINS Stock Report) was one of the leading gainers, with their shares nearly tripling amid the surge in Chinese fintech stocks. If you are an early investor in WINS stock, you would have made 2,600% in returns (if you have cashed out your position) in 2017 when WINS stock traded at $337 per share. Since the all-time high in 2017, the stock price hasn’t been kind to investors.
If you are a new investor, the timing couldn’t be any better for you to take a closer look at this stock. Amid the current economic climate, the US anticipates rates to remain near zero until 2022. If you are an investor looking to gain exposure to financial stocks, you may be aware that low interest rates affect the profitability of financial companies. As such, it may be time to look for companies operating in a higher interest rate environment. And WINS is one of them. With that being said, can we expect WINS stock to continue its rally this month?