(Yicai Global) Nov. 22 -- Chinese micro-lending platform Qudian Inc. [NYSE:QD] announced last night that it will initiate a stock repurchase plan and buy back up to USD100 million worth of American depositary shares over the next 12 months after its share prices took a major tumble.
The firm will purchase shares through several methods, including open market and private trading. The amount and timing of transactions will be subject to several factors, including but not limited to price, trading volume, market conditions and Qudian's working capital and general business requirements.
As of Sept. 30, its cash and cash equivalents totaled CNY1.483 billion (USD223 billion).
When trading began yesterday, stocks in China's payday lenders dived. Qudian's share price plummeted 19.4 percent in pre-trading. Stock prices fell 17 percent at Ppdai Group Inc. [NYSE:PPDF], 14 percent at China Rapid Finance Ltd. [NYSE:XRF], 10 percent at Hexindai Inc. [NASDAQ:HX] and 8.7 percent at Jianpu Technology Inc. [NYSE:JT].
Sentiments against the sector softened later in the day, with Qudian rebounding to close just 4.48 percent down.
Earlier media reports suggested China had stopped granting licenses to online payday lenders, and that new policies will likely affect a lot of platforms who will need to make changes in order to comply with requirements and retain their licenses.