Exploring 360 DigiTech, Inc. (QFIN) Investor Profile: Who’s Buying and Why?

You've watched 360 DigiTech, Inc. (QFIN) navigate China's complex Credit-Tech space, but are you defintely sure who is stacking up shares right now, and why they're willing to stomach the regulatory risk? The company's own full-year 2025 non-GAAP net income guidance, projected between RMB 6.28 billion and RMB 6.48 billion, suggests a stable, albeit cautious, outlook for a firm that just reported Q3 2025 revenue of $731.04 million. This isn't a hyper-growth story, so why are giants like Blackrock, Inc., which held 5,829,226 shares as of the Q3 2025 filing, still in the mix, and what do they see that the retail investor might be missing? Wall Street's average one-year price target of $49.22 suggests a massive upside from current levels, but is that a realistic value play or just analyst optimism? We need to follow the smart money. What are the institutional holders betting on?

Who Invests in 360 DigiTech, Inc. (QFIN) and Why?

If you're looking at 360 DigiTech, Inc. (QFIN), you're looking at a stock dominated by institutional money, not retail chatter. The key takeaway is that the majority of the stock-nearly 75%-is held by large funds who are primarily motivated by the company's deep value metrics and its aggressive capital return program, despite the inherent regulatory risk in the Chinese fintech space.

This isn't a stock for the faint of heart, but the numbers suggest a classic deep value play. The company's trailing 12-month (TTM) revenue as of June 30, 2025, was a solid $2.2 billion, yet the stock trades at a very low price-to-earnings (P/E) ratio of just 3.17. That's a huge discount compared to the market average P/E of about 38.38, which is why institutions are piling in.

Key Investor Types: The Institutional Powerhouse

The investor base for 360 DigiTech, Inc. is heavily skewed toward institutional players, which is typical for a profitable but often-volatile Chinese ADR (American Depositary Receipt). Retail investors, while present, don't drive the price action here. The sheer concentration of shares tells the story.

• Institutional Investors: They own about 74.81% of the stock. This group includes mutual funds, pension funds, and major asset managers like Vanguard Group Inc. and Krane Funds Advisors LLC, which held a 4.47% stake.
• Hedge Funds: These are the most active buyers right now. In the third quarter of 2025 alone, funds like Marshall Wace LLP increased their stake by a staggering 1,050.6%, and Millennium Management LLC raised its position by 105.4%. They are hunting for mispriced assets.
• Insiders: Management and board members hold a significant 17.10% of the stock, which is a defintely good sign of alignment between leadership and shareholder interests.

The high institutional ownership signals strong market trust in the company's core business model, even with the geopolitical noise. This is a big-money vote of confidence.

Investment Motivations: Why the Big Funds Are Buying

The motivation for buying 360 DigiTech, Inc. boils down to a few clear, quantifiable factors: deep value, robust cash flow, and a commitment to capital return. The company is simply generating a lot of cash relative to its market capitalization of approximately $3.18 billion as of Q3 2025.

Here's the quick math on their core appeal:

• Deep Value: Analysts see the stock as severely undervalued. One valuation model pegs the intrinsic value at $106.38 per share compared to a market price around $22.28, suggesting it is 79% undervalued.
• Growth and Technology Edge: The platform connects over 165 financial institutions to a massive consumer base of 275.8 million. Their investment in AI-powered risk management is paying off; upgrades improved the FPD7 (First Payment Default within 7 days) for new loans by approximately 5% month-over-month in June 2025.
• Shareholder Returns: Management is aggressive about returning capital. They spent US$277 million to buy back 7.1 million ADS in the first half of 2025, which reduced the share count by 9% year-to-date. Plus, they increased the semi-annual dividend to $0.76 per ADS.

You can see the financial strength that supports this strategy in Breaking Down 360 DigiTech, Inc. (QFIN) Financial Health: Key Insights for Investors.

Investment Strategies: Playing the Long Game and the Value Gap

The strategies employed by investors in 360 DigiTech, Inc. are a mix of long-term value holding and event-driven trading focused on the capital return narrative. This is not a high-growth momentum stock; it's a cash flow machine.

The high institutional ownership suggests a dominant long-term holding strategy, where investors are willing to tolerate near-term volatility, betting on the massive valuation gap closing over time. The expectation is that the stock price will eventually reflect the strong fundamentals, like the Q3 2025 non-GAAP net income of RMB1.85 billion.

Short-term trading is less prevalent. The short interest-the percentage of shares sold short-is only 3.45% of the float, and it has recently decreased by 23.41%. This shows that even skeptics are backing off, which is a bullish signal for the stock's near-term price floor. The market is slowly realizing the value here.

Finance: Track QFIN's P/E ratio monthly against the sector average to monitor the value gap closure.

Institutional Ownership and Major Shareholders of 360 DigiTech, Inc. (QFIN)

You want to know who is driving the ownership structure at 360 DigiTech, Inc. (QFIN) and what their recent moves tell us about the stock. The direct takeaway is that institutional investors hold a dominant position, controlling approximately 74.81% of the company's stock, but the third quarter of 2025 saw a notable divergence in strategy, with significant selling from some large funds balanced by aggressive buying from others.

This high institutional ownership signals a strong, albeit volatile, level of market trust in the company's AI-empowered Credit-Tech platform. For context, insider ownership-those closest to the operation-sits at a much smaller 17.10%. The institutional money is defintely the primary force here, so tracking their activity is crucial for any investor.

Top Institutional Investors and Their Shareholdings

When we look at the filings for the third quarter ending September 30, 2025, a clear hierarchy of major institutional holders emerges. These are the funds that have placed the largest bets on 360 DigiTech, Inc. (QFIN), often holding millions of American Depositary Shares (ADSs). Here's the quick math on who owns the biggest piece of the pie as of Q3 2025:

You can see firms like Blackrock, Inc. and Vanguard Group Inc. are foundational holders, which is typical for massive index and mutual fund managers. Still, the top spot is held by Aspex Management (HK) Ltd., a more concentrated, Asia-focused investor.

Changes in Ownership: The Q3 2025 Divergence

The most interesting story isn't just who owns the stock, but how they're moving their money now. The Q3 2025 data shows a significant net reduction in institutional positions, with 208 institutional investors decreasing their stakes compared to 133 adding shares. This tells you that for every buyer, there were more sellers, creating selling pressure.

The scale of some of the selling was massive. For example, ALLIANCEBERNSTEIN L.P. removed 3,367,883 shares, a -97.4% portfolio cut, valued at an estimated $96,927,672. AQR CAPITAL MANAGEMENT LLC completely exited its position, removing 2,619,066 shares for an estimated value of $75,376,719. This kind of wholesale exit from major funds suggests a re-evaluation of the China-based Credit-Tech sector risk or a strategic shift away from the company's specific Mission Statement, Vision, & Core Values of 360 DigiTech, Inc. (QFIN).

But it's not a one-way street. Other sophisticated investors saw a buying opportunity. KRANE FUNDS ADVISORS LLC, already a top holder, added another 1,271,942 shares, boosting their stake by +25.1%. Plus, DRIEHAUS CAPITAL MANAGEMENT LLC initiated a new position, adding 1,041,340 shares. These buyers are betting that the stock is undervalued, especially with the company forecasting a full-year 2025 non-GAAP net income between RMB6.28 billion and RMB6.48 billion.

• Major Sellers: ALLIANCEBERNSTEIN L.P. (-3,367,883 shares), AQR CAPITAL MANAGEMENT LLC (-2,619,066 shares).
• Major Buyers: KRANE FUNDS ADVISORS LLC (+1,271,942 shares), DRIEHAUS CAPITAL MANAGEMENT LLC (+1,041,340 shares).

Impact of Institutional Investors on Strategy and Stock Price

Institutional investors play a dual role: they are both a thermometer for market sentiment and a catalyst for corporate strategy. When a large percentage of the float is held by institutions, their collective buying or selling creates volatility, which is what we saw in Q3 2025. The heavy selling pressure contributed to the stock's overall movement, but the firm's own actions are also a major factor that these investors react to.

One key strategic move the institutions are watching is the company's 2025 Share Repurchase Plan. As of November 18, 2025, 360 DigiTech, Inc. had already purchased approximately 7.3 million ADSs for a total of about US$281 million. This share repurchase (a corporate action where a company buys back its own stock) acts as an internal buyer, directly supporting the stock price and signaling management's belief that the shares are undervalued. This is a critical factor for the buyers like Krane Funds Advisors LLC, as it directly increases earnings per share (EPS) for the remaining shareholders. The institutional buyers are essentially aligning with management's capital allocation strategy.

The heavy institutional presence also pressures management to maintain a strong balance sheet. The company's unaudited Q3 2025 results show a provision for loans receivable of RMB837.8 million (US$117.7 million), a jump from RMB477.5 million a year ago. Institutional investors scrutinize these numbers, and the increase in provisions-while reflecting a consistent approach to risk-is a data point that likely fueled the selling by risk-averse funds like Goldman Sachs Group Inc. and AllianceBernstein L.P. The bottom line is that these big funds are the ones who vote with their feet, so their movements are a real-time assessment of the company's risk/reward profile.

Key Investors and Their Impact on 360 DigiTech, Inc. (QFIN)

If you're looking at 360 DigiTech, Inc. (QFIN)-which has recently operated as Qifu Technology, Inc. and Qfin Holdings, Inc.-you need to know who is holding the bag. The quick takeaway is this: the stock is overwhelmingly controlled by professional money managers, which means its movements are driven by institutional conviction, not retail speculation. Institutional ownership stands at a massive 74.81% of the stock, signaling strong market trust in the company's AI-empowered Credit-Tech platform.

This high level of institutional control, with insiders holding another 17.10%, means the float is tight. What the big funds do matters more than anything else, so you need to watch their filings.

The Anchor Investors: Who Holds the Largest Stakes

The investor base for 360 DigiTech, Inc. is dominated by a mix of specialized China-focused funds and global asset management giants. These aren't just passive index trackers; many are active managers making a deliberate bet on the Chinese fintech sector's rebound and stability. As of the Q2 2025 filings, the largest institutional holders collectively own over 104 million shares.

Here's a snapshot of the top institutional positions as of mid-2025, which gives you a clear picture of the concentration:

Notice the two largest holders, Aspex and OLP Capital, are near the 5% reporting threshold. That's defintely a point of interest, as crossing that line usually triggers more detailed disclosures (Schedule 13D or 13G filings) that tell us more about their intentions.

Investor Influence: Why These Funds Matter

The influence of these anchor investors is felt in two primary ways: capital allocation and corporate governance. Funds like FountainVest China Capital Partners GP3 Ltd. have historically filed Schedule 13D reports, which is the Securities and Exchange Commission (SEC) form for investors who hold more than 5% and intend to influence management or corporate policy. While their current stake is below the 5% threshold, their history suggests a non-passive, strategic interest in the company's direction.

Their collective presence also acts as a powerful check on management, pushing for shareholder-friendly actions like the semi-annual dividend that Qfin Holdings (the current operating name) raised in Q2 2025. This focus on returning capital is a direct result of institutional pressure for yield and value realization in a maturing market.

• High institutional ownership demands operational precision.
• Active funds push for capital returns, like the dividend.
• Their long-term presence stabilizes the stock price floor.

Recent Moves and Market Signals in 2025

The most telling recent activity is the buying spree in the first half of 2025. For example, Aspex Management (HK) Ltd. significantly increased its stake by over 30% in Q2 2025, a clear vote of confidence in the company's resilience despite regulatory headwinds in the Chinese Credit-Tech space.

Also, the initiation of coverage by a major investment bank like JPMorgan on July 2, 2025, with an 'Overweight' rating and a bullish $65 price target, is a huge catalyst. Here's the quick math: with the stock trading around $22.44 as of November 14, 2025, that target represents an upside of over 189%. That kind of analyst conviction, coupled with the buying activity from funds like Kadensa Capital Ltd and Exchange Traded Concepts LLC earlier in the year, suggests a strong belief that the market is currently undervaluing the company's core business model.

To understand the foundation of this conviction, you should review the company's strategic evolution and business model: 360 DigiTech, Inc. (QFIN): History, Ownership, Mission, How It Works & Makes Money.

What this estimate hides, however, is the geopolitical risk inherent in Chinese ADRs (American Depositary Receipts), which is why the stock trades at a low price-to-earnings (P/E) ratio of 2.80 compared to the sector average of 25.14. The institutional buyers are essentially betting that the strong fundamentals-like the TTM revenue of $2.2 billion as of June 30, 2025-will eventually outweigh the regulatory noise.

Market Impact and Investor Sentiment

You're seeing the stock price of 360 DigiTech, Inc. (QFIN) fluctuate, but the core message from major shareholders is clear: institutional conviction remains high. Despite the near-term volatility, the majority of sophisticated capital views the company as significantly undervalued, and their actions prove it. This isn't just a hopeful outlook; it's grounded in the company's strong underlying financial performance.

The investor sentiment is defintely positive among large funds, even as the stock trades at a deep discount. Institutional ownership sits at a robust 83.83%, which is a powerful signal of market trust, especially in a China-based credit-tech platform. Plus, the recent decline in short interest by 23.41% suggests that bearish bets are retreating, further improving the overall sentiment.

Who's Buying and Why: The Institutional Conviction

The institutional investor profile for 360 DigiTech, Inc. (QFIN) shows a clear appetite for the stock. These aren't passive holdings; we're seeing major funds actively increase their positions, betting on the company's AI-driven risk management and market expansion. This is a classic value play for large institutions.

In a significant move, MIRAE ASSET GLOBAL INVESTMENTS CO., LTD. added a massive 2,023,590 shares in Q1 2025, while ALLIANCEBERNSTEIN L.P. added 2,400,993 shares in Q4 2024. These are not minor adjustments; they are nine-figure commitments to the stock. Their investment thesis is simple: the company is generating substantial cash flow and is trading at a fraction of its intrinsic value. For a deeper dive into the fundamentals driving this, you should look at Breaking Down 360 DigiTech, Inc. (QFIN) Financial Health: Key Insights for Investors.

Here's a quick look at the major institutional players and their stake, which collectively hold the majority of the float:

• Krane Funds Advisors LLC: 4.47% of shares.
• OLP CAPITAL MANAGEMENT Ltd: 3.53% of shares.
• Vanguard Group Inc.: 3.23% of shares.

Recent Market Reactions and Management's Signal

The market has been a bit choppy, to be fair. On November 19, 2025, 360 DigiTech, Inc. (QFIN) stock experienced a sharp drop of 10.9%, with the share price settling at $19.97. This reflects broader, non-company-specific market fluctuations and macro uncertainty, especially concerning Chinese credit services. Still, management is sending a powerful, concrete signal that they believe the stock is undervalued.

The board authorized a substantial share repurchase plan of US $450 million for the 2025 fiscal year. As of mid-August 2025, they had already deployed US $277 million of that budget to buy back about 7.1 million ADSs. Actions speak louder than words, and a buyback of this size-a large chunk of their market capitalization-is the clearest possible vote of confidence. They are also committed to shareholder returns, having just raised the semiannual dividend for the first half of 2025 to US $0.76 per ADS.

Analyst Perspectives on Key Investor Impact

Wall Street analysts are overwhelmingly bullish, which is a direct consequence of the company's strong fundamentals and the large institutional backing. The consensus rating is a 'Strong Buy'. This is mainly because the valuation metrics are screaming 'cheap.' The trailing twelve-month (TTM) Price-to-Earnings (P/E) ratio is remarkably low at just 2.80, compared to the Business Services sector average of 25.14.

Here's the quick math on the valuation gap: The average 1-year price target from analysts is $49.22, with a high forecast soaring to $61.43. Compare that to the recent price of $19.97. This suggests a potential upside of over 125% to the average target. The intrinsic value, according to some models, is even higher at $106.38.

The institutional buying is seen as validating the company's impressive Q2 2025 results, where total net revenue increased by 25.4% year-over-year to RMB 5,216, and non-GAAP net income surged by 30.8% to RMB 1,849. This profitable growth, combined with a market capitalization of roughly $3.4 billion as of October 20, 2025, is what's attracting the big money. They are buying a profitable growth story at a deep-value price.

What this estimate hides is the persistent regulatory risk in China, which is the primary reason for the low multiple. But the institutional money is clearly betting that the risk is already priced in, and the underlying financial health is too compelling to ignore.

Finance: Track the deployment of the remaining $173 million in the share repurchase program to gauge management's ongoing conviction.