Search
  • Ernie Diaz

Secondary Guessing

If you’re unaware of how three-alarm hot Chinese tech secondaries are right now, you’re not alone. The financial news industry understandably focuses on public companies, where facts and details can be verified.


The only thing verifiable about pre-IPO shares in companies such as Didi, Manbang, & Jindong Logistics is that prices can and will rise, by the day. As a result, many industry professionals are miffed. By the time they have a buyer’s LOI signed and delivered, the company’s valuation has been hyped up another few billion, another Chinese unicorn IPO like Kuaishou has popped, and the seller wants more money.


“The hype around Chinese tech secondaries is indeed unprecedented,” says Jimmie Jeremejev. “So is the resultant chaos, unfortunately. We have access to many LPs and GPs on the cap tables of these companies that want to, or even have to sell their shares. However, valuations are being driven by the expected IPO pop, resulting in higher and higher prices, more and more demand, and price offers that are only good for a day or so.”

20 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.