According to the Financial APP, at the close of the US stock market on Friday (September 29) Eastern Time, driven by the substantial rebound of China concept stocks and continuous valuation repair, Lufax, a leading new consumer digital technology service provider in China, rose by 13.81%, closing at $2.72, with a daily trading volume of $25.8504 million.

Lufax opened with a high price and continued to rise, reaching a high of $2.94 before closing at $2.72, setting a new high since February 9, 2023. After hours data also shows a 0.77% increase in Lufax's stock price.

This marks Lufax's fifth consecutive day of gains, with its stock price rising by 62.87% during this period. The trading volume of $25.8504 million is the highest in three and a half years for Lufax, surpassing the previous high of $26.88 million on August 26, 2021.

On the market front, Powell's hawkish remarks dampened the rate cut fervor, with the market now predicting a significantly reduced probability of a 50 basis point rate cut by the Fed in November to 36.2%. As a result, all three major US indices closed higher, with both the Dow and S&P hitting new highs. At the close, the Dow rose by 0.04%, the S&P 500 index by 0.42%, and the Nasdaq by 0.38%.

Most popular China concept stocks rose, with the Nasdaq Golden Dragon China Index closing up 0.45% at 7268.41 points, edging closer to the closing level of 7274.59 on September 1, 2023. Among them, JinkoSolar rose by over 15%, Dingdong Maicai by approximately 12%, TAL Education by over 9%, and RLX Technology by over 7%.

The rise in Lufax's stock price is mainly influenced by optimistic expectations for the second half of the year in terms of performance and valuation repair.

During the 2024 Q2 earnings conference call, Lufax management explicitly stated that risks will continue to improve in the second half of the year, profits will gradually increase, and it is highly probable that the company's dividend scale will also increase accordingly.

In the semi-annual financial report, Lexin continued its bi-annual dividend policy, this time distributing cash dividends of approximately $0.072 per ADS, about 20% of the net income in the first half of 2024. Based on the closing price of $1.77 before the financial report release (August 27, Eastern Time), the company's dividend yield exceeds 8.1%, surpassing the four major banks known for high dividend yields.

Dividends are just a part of the investment returns in Lexin. Despite experiencing a significant stock price increase over five trading days, Lexin's forward P/E ratio is only 3.88 times, much lower than the industry average, indicating further growth potential.

Performance is the catalyst driving stock prices and dividends. Building on seven consecutive quarters of revenue growth, Lexin has achieved significant breakthroughs in its overseas business. For example, in the second quarter, the loan scale in the Mexican market increased by 61% compared to the previous quarter, with revenue rising by 113%. The company has now identified overseas business as a key strategic direction.

Founded in August 2013 and based in Shenzhen, China, Lexinfintech has actively connected online and offline extensive consumer scenarios through its platforms, linking millions of young Chinese consumers with new consumer brands. In December 2017, Lexinfintech officially landed on the Nasdaq in the USA.