Qfin Holdings Executive Named in Securities Class Action

Qfin Holdings, Inc. (NASDAQ: QFIN) is facing a securities class action lawsuit in which Yan Zheng, the company's Chief Risk Officer and newly appointed Chief Executive Officer, has been named as a defendant. The legal action was filed on behalf of investors who purchased or acquired Qfin securities between March 18, 2026, and August 25, 2026.

The company's American depositary shares experienced a significant decline, falling from a closing price of $11.53 on August 25, 2026, to $9.35 the following day. This drop occurred after Qfin projected a year-over-year decrease in third-quarter non-GAAP net income ranging from 67% to 73%. Zheng, who held the position of Chief Risk Officer throughout the class period and assumed the CEO role on September 21, 2026, now faces allegations that he issued misleading statements about the company's loan risk and asset quality during a period of mounting regulatory pressures in China.

The complaint asserts that in March 2026, Zheng acknowledged a "noticeable increase in portfolio risks" but simultaneously stated that "the risk performance of new loans started to improve and their contribution gradually increased." He further assured analysts that the company had undertaken proactive measures in both underwriting and collections and had observed tangible results. Later, in May 2026, he stated that "our asset quality steadily improved in the first quarter and remained stable in recent months."

The situation shifted in August 2026 when Qfin disclosed that a nationwide regulatory campaign targeting the collections industry had resulted in a "severe shortage of collection capacity across the board." Following this announcement, J.P. Morgan downgraded Qfin to "Underweight," citing an asset quality that "deteriorated sharply in August." The lawsuit contends that Zheng's assurances regarding risk management were misleading, as the regulatory headwinds were having a more substantial impact on Qfin's business than was disclosed.

Investors who incurred losses during the class period have until November 27, 2026, to seek appointment as lead plaintiff. Levi & Korsinsky, LLP, a law firm specializing in shareholder rights litigation, has notified investors of the opportunity to pursue compensation.