On Friday, October 31, LexinFintech Holdings Ltd. (LX.US), a leading Chinese digital consumer technology service provider, saw its shares soar by 25.19% to close at $4.82, with a trading volume of $79.38 million. This marks the stock's highest single-day gain in the past year, surpassing the previous peak of 26.84% on October 2, 2024. After-hours trading showed continued momentum, with a further 0.21% increase.
The rally was driven by multiple factors, including the new U.S.-China tariff agreement and the company's improving quarterly performance. Broader market sentiment was also lifted by Amazon's optimistic earnings outlook, which eased concerns over excessive AI-related spending. Major U.S. indices closed higher, with the Dow Jones Industrial Average up 0.09%, the S&P 500 rising 0.26%, and the Nasdaq Composite gaining 0.61%. The Nasdaq Golden Dragon China Index (HXC) advanced 0.53%, while other notable Chinese stocks like Canadian Solar (up 15.72%), Lufax (up 11%), and ASE Technology (up 6.45%) also posted gains.
LexinFintech's surge reflects its undervaluation, growing ecosystem advantages, and commitment to shareholder returns. Financially, the company has demonstrated consistent risk reduction and profit growth. In Q2 2025, revenue reached RMB 3.59 billion, up 15.6% quarter-over-quarter, while non-GAAP EBIT rose 15.2% QoQ and 116.4% YoY to RMB 670 million. Despite this, its valuation remained low compared to peers, making the recent rebound a correction from prolonged underperformance.
Operationally, LexinFintech's diversified ecosystem is gaining traction. Its Fenqile Mall upgraded supply chains and expanded premium consumption scenarios, driving a 139% YoY GMV growth during the "618" shopping festival. The Fenqile普惠 initiative, leveraging big data and AI, extended its "Believe in Small Dreams" program to over 330 counties across 30 provinces, facilitating RMB 4.69 billion in loans in Q2. Overseas, the company optimized customer acquisition and risk management, achieving sequential growth in scale and revenue.
Enhancing shareholder returns, LexinFintech announced a $60 million buyback plan in July and raised its dividend payout ratio from 25% to 30% of net profit starting H2 2025. With the Q3 earnings season approaching, further growth is anticipated as performance improves.
Founded in August 2013 and headquartered in Shenzhen, LexinFintech connects young Chinese consumers with brands through its "easy consumption, flexible financing" philosophy. It went public on the Nasdaq in December 2017.