Lufax Holding Ltd (LU) Sells $64M in Bad Loans to Cut Credit Risk, Stabilize Outlook

We recently compiled a list of the 10 Best Low Cost Stocks To Buy Under $50. Lufax Holding Ltd stands fourth on our list.

Lufax Holding Ltd (NYSE:LU), a leading Chinese fintech firm serving small and micro businesses, is undergoing strategic shifts to navigate a challenging market in 2025. A key recent development was the sale of non-performing loans (NPLs) through its subsidiary, Ping An Consumer Finance. The transaction involved offloading 469 million yuan in NPLs for 36.44 million yuan to Sh China Merch Ping An Asset Management. This move reduced credit risk and supported a drop in the company’s loan portfolio by 18%, helping stabilize investor sentiment amid asset quality concerns.

In addition to asset optimization, Lufax Holding Ltd (NYSE:LU) is focusing on digital transformation through new partnerships and AI-driven innovation. These efforts aim to boost operational efficiency and profitability while enhancing its competitive edge in a crowded fintech market. The business is also pursuing cost-cutting measures as part of a broader strategy to improve earnings.

Despite these positive steps, cheap stocks to buy like Lufax Holding Ltd (NYSE:LU) saw sharp declines in late July, dropping over 11% and 12% on back-to-back days. The sell-off reflected investor concerns over limited near-term catalysts and persistent pressure from traditional banks.

Looking ahead, the corporation plans to continue managing credit risk proactively, expand its digital offerings, and pursue strategic partnerships. These efforts are expected to support earnings growth and may enable the resumption of dividends by the end of the 2025 fiscal year.

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