This article only represents the author's own views.

Online lender Lufax Holding Ltd. (LU.US; 6623.HK) just keeps getting smaller. First, the company underwent a radical transformation that saw its lending portfolio shrink by about nearly half in 2023, as it focused on higher-quality borrowers in a broader “de-risking” process. Now, Lufax’s cash pile is about to undergo a similar downsizing with its announcement of a massive special dividend that will cost it around 10 billion yuan ($1.38 billion) – equal to about a quarter of its total cash at the end of last year.

That massive dividend will see shareholders of record on April 9 receive a dividend of $2.42 per American depositary share (ADS), the company announced in its latest quarterly results released last Thursday.