OneConnect Financial Technology (NYSE: OCFT) Makes Major Strategic Moves, Weeks After IPO

The year 2019 was a mixed bag for IPOs. One of the company’s that went public and has performed well is OneConnect Financial Technology Ltd (NYSE: OCFT). The company went public in December, at $10 and rallied to a high of $16.60. Yesterday, it closed the day at $12.48, still significantly higher than its offer price. Since going public, the company has made a series of announcements that have played a role in its price action.

On January 6th, the company announced that, China’s first unsecured loan based on the blockchain had been given on the OneConnect platform. For this to happen, OneConnect relied on data from the Guangdong digital government, and its internal blockchain financial technologies, big data and AI. These resources allow the company to give financing to SMEs, while at the same time dealing with the challenge of unevenness in information. The company noted that, it achieved this by also giving complete commercial credit profiles to businesses and other critical players to lower the risks.

Commenting on this development, the CEO Mr. Ye Wangchun stated that, the new platform has a major technical advantage in FinTech. He noted that, the advantage comes from its use of blockchain technology, which allows for much better information sharing, the ability to create mutual trust among the players, and improved security. 

Back in 2019, on the 25th of December, the company announced that it had entered into a joint venture with SBI group, a Japanese financial services company. Through the partnerships, the two companies will offer advanced cloud services to banks in Japan.  The joint venture was the first move by OneConnect to enter the international market, after being listed in the U.S market.

From its price action, the stock traded between $12.30 and $15.20 in yesterday’s session. Volumes in the day stood at 1,480,615.

About OneConnect Financial Technology Co Ltd

OneConnect Financial Technology Ltd is a cloud services FinTech Company. It is based in Shenzhen, China.