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X Financial: this Chinese lender is keeping tight control of its balance sheet

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The Chinese consumer finance specialist X Financial [NYSE:XF] known as 'X' published impressive results at the end of August. It provides an online marketplace connecting borrowers and investors as well as its own loan products - e.g. the Xiaoying credit loan. Other lending products include a housing loan and a small business loan.

X is currently trading at the eye of a major debt storm in China, but its balance sheet metrics make it a stand out value play for international investors looking for cheap stocks in the consumer finance sector. X Financial also trades on the NYSE with shares in USD. The stock has suffered somewhat from concerns over the Chinese economy. USD shares fell from $5 at the end of July to hit $3.60 at close of trading on Wall Street on Friday.

Most of the debt-related issues in the Chinese economy seem to be congregating around larger lenders in the commercial real estate market, which is looking over-cooked, and borrowing by local governments. It seems as if China's municipalities have been taking on too much debt on their books for some years now.


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