Is LU (Lufax Holding Ltd) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LU is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 4 of 4 compliance screens. Lufax Holding Ltd's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 5634.36% exceeds the ≤33% threshold. Its interest income of 51.29% exceeds the ≤5% limit. Its cash & securities ratio of 5022.53% exceeds the ≤33% threshold.

Lufax Holding Ltd operates a prominent technology-empowered personal financial services platform in China. The company primarily offers unsecured and secured loan products, consumer finance loans, and wealth management platforms to affluent investors and small business owners. For Muslim investors relying on HalalStocks.co.uk, Lufax Holding Ltd is classified as Not Halal (Haram) and fails all AAOIFI screening criteria. The company's fundamental business model revolves around conventional credit services, meaning its primary revenue generation is inherently tied to riba (interest), failing the core business activity screen outright. From an Islamic finance perspective, Lufax presents severe financial compliance issues, most notably an extreme debt-to-market cap ratio of 5634.4% and an interest income to revenue ratio of 51.29%. Furthermore, its cash and securities to market cap ratio sits at an immense 5022.5%, highlighting a deeply leveraged balance sheet saturated with interest-bearing assets. Because the company operates directly in the conventional financial services and lending sector, there is no scholarly debate regarding its non-compliance. Halal investors must entirely avoid this stock and look toward shariah-compliant alternatives in the technology or real economy sectors instead. Lufax Holding Ltd operates in the Financial Services sector under the Financial - Credit Services industry and is headquartered in Shanghai, CN. The company is led by CEO Xiang Ji and employs approximately 36,215 people.

LU was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LU passed 0 of these 4 screens.

LU was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.