The ADRs of several Chinese lenders, such as recently IPO'd Qudian and Hexindai, are crashing following a report from Netease that the country has decided to halt approvals for new online microlenders, citing risky cash-loan businesses at some firms.
Bloomberg reports that the Netease report raised concern that the lenders, some of which just recently listed in the U.S., could be subject to further restrictions.
ADRs of Qudian (green) and China Rapid Finance (blue) fell as much as 20 percent, with Hexindai (red) and Yirendai also dropping...
Adding to the pain, state-backed business publication Yicai Global earlier said Qudian suffered a data leak related to millions of student users, citing a Nov. 20 article from local media outlet Yibencaijing.
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Once again the greedy, make-a-quick-buck, what-could-go-wrong, US equity market investor is left holding the bag... Will they ever learn?