JDL – Jindong Defense League

Chinese tech pre-IPOs are blazing hot lately, the Kuaishou pop only serving to fuel the frenzy. So little wonder that Jindong Logistics is up to a $13.9b valuation ahead of filing its prospectus a few days ago.

Anyone who lives in China knows you can order a steak from Jindong in the morning, get it in the afternoon, cook it and send it via JDL to your friend in the next city, who will get it while it’s still hot. So the value is easy to perceive.

Not so easy for western investors struggling with the ever-increasing valuations on a Chinese company that’s not even profitable. The criticism would feel more justified without entities such as Tesla and Gamestop on the other side of the IPO fence.

“When it comes to China tech unicorns, traditional valuation is out the window,” says Edward Lehman. “Investors are confident that companies with established market share in must-have tech are going to keep growing in value, whenever that’s reflected on the balance sheet.”

Call it irrational exuberance, but don’t call too late if you want in on the action. It’s definitely a seller’s market.