© Reuters. Lufax vs. 360 Finance: Which Fintech Stock is a Better Buy?
The Chinese consumer financial services industries has been growing rapidly due to the increasing application of advanced technologies and the launch of digital . Because the industry is expected to thrive this year and beyond, we think the two key players in this space—Lufax Holding (LU) and 360 DigiTech (QFIN)—are poised to deliver solid returns. But let’s find out which of these two stocks is a better buy now.Lufax Holding Ltd. (LU) and 360 DigiTech Inc. (QFIN) are two leading consumer finance companies based in China. LU’s business segments include retail credit facilitation and wealth management. QFI provides mainly tailored online consumer finance products to prime, underserved borrowers. Most companies that provide digital financial services are thriving amid the COVID-19 pandemic thanks to their pandemic-ready business models.
Also, China recently launched its centralized digital currency nationwide, which will be managed by domestic fintech companies. So, the demand for products and services provided by fintech companies such as LU and QFIN is also expected to increase in the coming months because they play an important role in distributing and managing the digital Yuan across China and overseas.
QFIN has returned 105.6% so far this year, while LU lost 3.5%. In terms of their past three months’ performance, QFIN is a clear winner with 77.2% returns versus LU’s negative returns. But which of these two stocks is a better pick now? Let’s find out.
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