Why Shares of OneConnect Financial Tech Are Falling Today

Shares of OneConnect Financial Technology (NYSE: OCFT) had fallen more than 25% as of 11:40 a.m. EDT after the company reported earnings results for the second quarter of the year. Analysts at Morgan Stanley also downgraded the stock.

OneConnect, which provides a technology-as-a-service platform for Chinese financial institutions, reported diluted earnings per share equivalent to a loss of nearly $0.05 on total revenue equivalent to $149.7 million. EPS beat expectations, but revenue missed analysts' average estimates of nearly $168 million by about 11%.

"The management team worked diligently in the second quarter, to address changes from further regulatory tightening, the shift in customer needs and the operating environment," Ye Wangchun, chairman and CEO of OneConnect, said in a statement. "Despite these challenges, our revenue rose by 25% year over year to RMB968 million [the renminbi is the currency of China], benefiting from our diversified suite of solutions."

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Source Fool.com