Portnoy Law Firm Announces Class Action on Behalf of Qfin Holdings, Inc. Investors

LOS ANGELES, Oct. 05, 2026 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Qfin Holdings, Inc., (“Qfin” or the “Company”) (NASDAQ: QFIN) investors of a class action on behalf of investors that bought securities between March 18, 2026 and August 25, 2026, inclusive (the “Class Period”). Qfin investors have until November 27, 2026 to file a lead plaintiff motion.

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via https://portnoylaw.com/qfin-holdings-inc. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

Qfin, along with its corporate subsidiaries, functions as a alleged AI-powered credit technology business operating under the “Qifu Jietiao” name within the People’s Republic of China (“China” or the “PRC”). The firm offers credit-based solutions that connect borrowers to financial institutional partners, handling borrower acquisition, credit evaluation, capital matching, and post-facilitation care, alongside a variety of consumer finance platform services—most notably loan-facilitation assistance for financial institution partners, a smart credit engine, and user referral services. The business serves financial institutions, retail consumers, and small-to-micro businesses.

During 2025, China’s consumer finance sector underwent a systemic restructuring triggered by fresh PRC regulatory directives, which encompassed key measures like updated loan facilitation standards, window guidance directed at consumer finance providers, and overarching regulatory frameworks governing total financing costs for micro lenders. Former Chief Executive Officer Defendant Haisheng Wu admitted that, “[i]n the near term, these measures tightened market liquidity, which in turn suppressed credit demand and put unprecedented pressure on both loan growth and risk management across the industry.”

Despite these oncoming regulatory obstacles, Defendants repeatedly praised Qfin’s capacity throughout the Class Period to not only navigate, but successfully adjust to and flourish under, the ongoing and evolving PRC regulations governing its core business. Specifically, Defendants continually depicted Qfin’s operations as “resilient,” “steady,” and “stable” amidst these regulatory shifts, while highlighting the organization’s supposedly “proactive” initiatives and internal policies tailored to bolster—and allegedly already enhancing—Qfin’s risk profile and core operational metrics.

The action asserts that Defendants distributed materially false and misleading statements about the organization’s business model, operational health, and future prospects across the Class Period. In particular, Defendants provided false or misleading assurances and/or omitted critical facts showing that: (i) Defendants overstated Qfin’s operational resilience and overall financial stability in the wake of regulatory modifications; (ii) Defendants minimized the real scale and intensity of the adverse effect regulatory challenges would exert, and were actively exerting, on the organization’s operations and financial metrics; and (iii) consequently, Defendants’ public representations remained materially false and misleading during all relevant periods.

The underlying reality surfaced on August 25, 2026, when Qfin published an after-hours press release disclosing its Q2 and interim 2026 unaudited financial performance. The firm revealed that aggregate net revenue dropped 31.6% year-over-year (“Y/Y”), declining from roughly RMB 5.22 billion down to roughly RMB 3.57 billion, coming in well below consensus expectations. Furthermore, net income cratered 76.8% Y/Y from approximately RMB 1.73 billion down to RMB 401.4 million, hit hard by an unprojected RMB 500 million tax assessment “caused by a change in tax treatment of certain entities based on the updated interpretation of related tax regulations by the tax authorities.” Executive leadership also provided weak forward-looking guidance, forecasting a 67% to 73% Y/Y drop in Q3 non-GAAP net income driven by mounting capital costs and broad liquidity shocks across China’s consumer credit space.

Addressing the weak performance, Defendant Wu pointed to “a challenging market environment marked by continued industry contraction, tighter regulatory oversight, and a sudden industry-wide liquidity shock in late June,” cautioning that “[l]ooking ahead, we expect industry adjustments to continue, with funding conditions and risk management likely to remain under pressure.”

Following this revelation, Qfin’s American depositary share (“ADS”) price plummeted $2.18 per ADS, representing an 18.91% decline, to settle at $9.35 per ADS on August 26, 2026.

The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA, NY and TX Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com

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