• Ernie Diaz

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.

46 views0 comments

Recent Posts

See All

The Class is Half Full

Chinese students are back in class (mostly), but China is still backing online education as the way forward, a cornerstone of the CCP’s vow to ‘completely modernize’ its education system by 2035. Seco

HNA - Holding No Assets

There are two ways to take HNA's current state of dismal receivership: 1. as a reason to reinforce the simple man's risk-off China stance, or2. as confirmation to do some semi-robust DD before buying

When the Chips Are Down…

Experienced snackers know that a bag of chips is only 40% full. The rest is stale air. So why do western pundits fret about China’s supposed lead in chip sufficiency? Surely it can’t be all the PR abo

Contact Us


10-2 Liangmaqiao Diplomatic Compound

No.22 Dongfang East Road Chaoyang District


(86) (10) 8532 1919

Copyright ©2020 LEHMANBUSH