Is X Financial XYF stock Halal to invest in?

No, as of September 2026, X Financial stock (XYF) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening Halal stocks. To qualify as Halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. X Financial currently does not meet the threshold for the non-permissible income, interest-bearing investments and interest-bearing debt screens. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of X Financial and discover Shariah compliant alternatives among the Halal stocks in the Tabadulat app.

How often is X Financial XYF reviewed for Shariah compliance?

Tabadulat reviews X Financial XYF for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for X Financial reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does X Financial XYF pass the AAOIFI Non Permissible Income criteria?

No, as of September 2026, X Financial stock (XYF) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or Riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. X Financial's income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does X Financial XYF pass the AAOIFI Interest Bearing Investments criteria?

No, as of September 2026, X Financial stock (XYF) does not pass the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. X Financial's interest-bearing investments currently exceed this 30% limit, meaning too large a share of the company's value derives from Riba-based instruments for the stock to qualify as Halal on this criterion. The ratio moves with both the balance sheet and the share price, and is reassessed monthly.

Does X Financial XYF pass the AAOIFI Interest Bearing Debt criteria?

No, as of September 2026, X Financial stock (XYF) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar Riba-based financing) must remain below 30% of its market capitalisation. X Financial's interest-bearing debt currently exceeds this 30% limit, meaning the company relies on Riba-based financing beyond the level AAOIFI permits for a Halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for X Financial XYF stock?

X Financial (XYF) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (Tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a Halal investment. If X Financial returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does X Financial XYF pass the AAOIFI Preference Share screen?

Yes, as of September 2026, X Financial stock (XYF) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. X Financial has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Is X Financial (XYF) stock Halal?

NYSE

Shariah-Compliant

Not Shariah

September 2026 AAOIFI screening result for X Financial (XYF): non-permissible income, fail. Interest-bearing investments, fail. Interest-bearing debt, fail. Preference shares, pass. X Financial is not currently Shariah compliant. Re-screened monthly against AAOIFI Shariah Standard No. 21.

Sector:

Financial Services

Industry:

Credit Services

Employees:

563

Website:

https://ir.xiaoyinggroup.com

Market cap:

P/E ratio:

Dividend yield:

52-week range:

Data as of:

Screening history:

September 2026: FAIL

X Financial is a leading fintech company based in China that specializes in offering comprehensive financial services, primarily focused on online lending. The company plays an integral role in connecting borrowers with diverse financial needs to lenders through its innovative, technology-driven platform. This service primarily targets individuals seeking personal loans, leveraging data analytics and unique risk assessment models to provide efficient credit assessments. Before any of that matters to a Muslim investor, one question comes first: is X Financial stock Halal?

Is X Financial Shariah compliant?

In financial services the activity screen carries the verdict more often than anywhere else: AAOIFI Shariah Standard No. 21 draws a hard line between fee based, permissible services and earning Riba as a business model. For X Financial, that distinction comes first, with the debt and investment ratios behind it.

Does X Financial pass the business activity test?

The activity screen is only part of the picture this month: X Financial currently fails the non-permissible income, interest-bearing investments and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. The watch item in this sector is the sharpest of all: revenue must come from permissible services, not from lending at interest.

Is X Financial's income Halal?

No. X Financial's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does X Financial meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps: interest bearing investments and interest bearing debt each exceed the limit AAOIFI permits for a Halal investment. The ratios move with the share price as well as the balance sheet, and our Shariah Supervisory Board has XYF re-screened every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read What is Riba? A Clear Guide for Ethical Muslim Investing

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