(Yicai Global) Oct. 22 -- Shares in 51 Credit Card, one of China's leading fintech companies, recovered some lost ground as it denied illegally collecting user data after police raided its offices yesterday as part of a probe into allegations about intimidating debt collection practices.

The stock [HKG:2051] gained 13 percent today to close at HKD2 (26 US cents). It resumed trading at 1 p.m. after plunging by about a third yesterday before being suspended.

All personal information the group collects is authorized by legitimate users, the company said in a statement today. There is no illegal interception of information. In response to false reports and misleading analysis by the media, the firm said it reserves the right to pursue legal redress.

Police descended on the firm's headquarters in the Xihu district of Hangzhou city yesterday morning after receiving many complaints about irregular collection activities since last month. Preliminary investigations found that 51 Credit Card hired collection firms whose staff posed as government officials to collect debts through threats and other acts of disorderly conduct, the Hangzhou Municipal Public Security Bureau said in a statement yesterday.

In a post published on his Weibo social media account today, founder and Chief Executive Sun Haitao apologized for any concern caused and said the company is cooperating with the investigation.

51 Credit Card's operator is Hangzhou Enniu Network Technology, which has registered capital of CNY500 million (USD71 million). Sun is Enniu Network's legal representative. He is also believed to be its actual controller, according to information from corporate data app Tianyancha.

The company secured financing in several rounds from Xiaomi, JD.Com, Shunwei Capital, Qianhai Equity Investment Fund and other investors.
The company, which listed on Hong Kong's main board last year, operates the 51 Credit Card Manager, 51 Renpin and 51 Renpin Loan apps, according to its website. It is China's first and biggest online credit card management platform, largest independent online credit application platform and largest online consumer finance market targeting credit card holders, New York-based global management consulting firm Oliver Wyman said in a 2017 report.

51 Credit Card posted CNY1.4 billion (USD197.92 million) in operating revenue in the first half, up 9.8 percent from a year earlier, and CNY309 million in adjusted net profit, up 12.9 percent, per the firm's first-half business report.

The platform now has 83.4 million registered users, up 21 percent compared with the same period last year, and 138.7 million credit cards under management, up 16.9 percent in the same period.

Editor: Ben Armour