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This Nasdaq-Traded Lender Benefits from China's Stimulus Measures

The fintech lender's revenue from its main business jumped in last year's fourth quarter as China rolled out a series of measures to stimulate its economy

Key Takeaways:

Jiayin's revenue from its main loan facilitation services rose 46% in last year's fourth quarter as it predicted more strong growth for that business this year

The company's business boomed as Chinese policymakers sought to boost the country's economy through a new series of private consumption stimulus measures

Beijing's efforts to revive the Chinese economy are breathing new life into a previously embattled group of private small lenders that focus on providing financing for average Joes.

That group of beneficiaries includes Jiayin Group Inc. (JFIN.US), which operates an online platform for consumer loans. The company's revenue from its main loan facilitation services jumped 46% year-on-year in the fourth quarter of last year to 1.1 billion yuan ($154 million), according to its latest results released last Thursday. It also predicted continued strong growth for its core business this year, forecasting its loan facilitation volume would grow about 40% from 2024 levels.

Jiayin's business boomed as the Chinese government kept busy toward the end of last year rolling out a steady stream of measures to stimulate the world's second-largest economy, which has slowed notably after years of rapid growth. A key focus for policymakers lately has been boosting domestic consumption to reduce China's heavy reliance on exports and foreign investment, which have become less dependable these days amid growing global protectionism and shrinking foreign direct investment (FDI).

One key program to boost consumer spending offers rebates to consumers when they trade in their old home appliances and smartphones for new ones. Government workers also received surprise wage increases in January, and just last month the government unveiled a grand program dubbed a "Special Action Plan to Boost Consumption."

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https://www.benzinga.com/news/earnings/25/04/44608895/this-nasdaq-traded-lender-benefits-from-chinas-stimulus-measures