This past week there have been 3 Chinese companies that have gone public in the US. This morning, fintech platform Jianpu IPOed on the NYSE at $8.00. The stock ended up opening at $8.25, and by the end of the trading day, the stock closed at $8.40.
James Mi, co-founder of Lightspeed China Partners joins Cheddar to explain this new trend. The company has brought three of their investments to public market in the last couple of weeks, the latest company being Jianpu. Mi says as early-stage investors, it takes time to build a company. Jianpu has been around for six years, so after growth and development, it was time to take the company public.
Mi explains that it's the right time to invest in Chinese fintech and Chinese loan companies, because young consumers in China are looking to get into the financial service industry. The fintech companies enable young consumers to pursue the financial service industry without going to a physical bank. Fintech is so big in China because demand is high, and has spurred revenue and growth.