Asking For Seconds

JingDong Logistics just listed in Hong Kong, pumping a respectable 14%, and 29% in the "gray market". Not an unalloyed triumph, but a respectable showing.

All well and good, the plans to use the $3.2b raised for expansion and revenue growth, as China increasingly becomes a place where "going shopping" is a virtual experience.

But we're viewing JDL more as a groundhog, after a government crackdown froze the previously overheated market for secondary shares in pre-IPO Chinese tech companies. Will the summer see valuations and interest rising as quickly as the thermostat in Nanjing?

"JDL's listing is a positive sign, but certainly not an indication that the pre-IPO gold rush is back on," says Jimmie Jeremejev. "However, the situation presents a golden opportunity for savvy secondaries investors. Shareholders in great Chinese companies still need liquidity, and are parting with shares at what we see as discounted valuations, given that the market will inevitably ramp up once these new anti-trust regulations are sorted out."