• Ernie Diaz

Generation Z-Round

It’s the financial world’s version of never leaving mom & dad’s house: why list, when you can keep getting fresh rounds of investment? Why move out into the real world, when you know the ‘rents are going to have to give you a car, the rec room, heck, the whole estate eventually- anything to preserve the belief their baby is a winner?

This slacker philosophy is propelling secondaries to frothy oceans of speculation and frenzied trading. To pour oil on those troubled waters, enter the Chinese government, stage right.

“The official China strategy is at odds with ‘Chinese Wall Street’s’,” says Jimmie Jeremejev. “The larger economic goal is a booming Star Market, and retail investors who can enjoy some of the upside created by the copious government investment that goes into this herd of Chinese tech unicorns being steadily foaled.”

So are current raging (and aging) stallions such as Didi and Bytedance a dying breed? “These companies are coming on eight and nine years old, respectively,” says Edward Lehman. “Traditionally, that’s young. In tech terms, it’s middle-aged. Look for future Chinese tech darlings to be taken to market in three to five years.”

10 views0 comments

Recent Posts

See All

Too Big to Bail

We'd like to bear witness against the notion that Chinese giants are simply propped up by their government when they stumble. Sure, China's central bank and regulatory bodies shut Anbang down a few ye

Schools & Regulations

First they came for the tech companies, and we did not speak, for cybersecurity and monopolies are a thing. Next they came for the listed education companies, and we did not speak, for anyone in China

Free Money

It's just the same as with your therapist: the more you open up, the harder it is to stop. Opening up the economy led to 9%= GDP growth for decades, a golden era of prosperity. Anyone grateful? Nope.