This is the biggest year for Chinese companies going public in the United States since 2010 | Digital Asia
Digital Asia News Update
- YouTube/Sky9 Capital
- More companies are going public in the United States, according to a study by institutional research firm Renaissance Capital.
- So far in 2018, 23 Chinese companies have gone public on the US markets.
- Even more Chinese companies are planning to enter the US markets by the end of the year.
This has been a landmark year for Chinese companies on American markets.
According to a study by institutional research firm Renaissance Capital, which was first reported by VentureBeat, 23 Chinese companies have gone public in the US this year – more than any other year since 2010. In the third quarter of the year alone, ten Chinese companies went public, raising an accumulated $3.3 billion USD.
Among them are startups like the fast-growing ecommerce giant Pinduoduo, Beijing-based electronics company Xiaomi, and the electric car manufacturer Nio. And even more Chinese companies are eyeing the US market for public offerings before the year is up.
Read more: How Pinduoduo became a $23 billion company in less than 4 years
On Tuesday, the music division of Tencent and largest Chinese streaming service, Tencent Music, filed to go public in the US. At least four more Chinese companies are expected to appear on the US market, including scooter manufacturer Niu and a casino operator, according to Renaissance Capital’s report.
Despite President Donald Trump’s trade war, China’s tech sector is still testing out the US public markets. It also shows that more and more Chinese companies are eager to position themselves as contenders on the global stage. Ron Cao, a partner at Shanghai-based investment firm Sky9 Capital, which spearheaded early investments in China’s Pinduoduo, has said that Chinese startups aren’t simply interested in overtaking Asia’s markets.
“We’re seeing more and more international trends,” Cao said in an interview with Business Insider earlier this year. “We’re seeing how we can take advantage of where we’re living in China to take an advantage of things globally. US companies have been very successful globally, and we’re thinking that more Chinese companies will become successful on a global scale as well.”