As China's technology companies have become some of the largest in the world, they're influencing the investing habits of their employees and customers, and spurring a new business of online stock trading.
"Online brokers are playing a critical role to support mobile/online trading of offshore securities for Chinese investors," Cliff Sheng, partner at Oliver Wyman, said in an email to CNBC." younger and educated population is clearly the mainstream of online/mobile stock trading. However we observe the 'less techy' population are quickly shifting away from traditional brokerage model to online/mobile ones.
The valuations are a far cry from the tens of billions in market value for major U.S. online stock brokers such as TDAmeritrade and E-Trade. Still, having gained hundreds of thousands of customer accounts in just a few years, the Chinese players have captured the important demographic of young investors for whom more traditional U.S. financial firms are vying with start-ups such as Robinhood.
"If you look at our typical user profile, they are still in the early stage of their wealth creation," Arthur Yu Chen, Futu's chief financial officer, told CNBC in a phone interview the day the company went public. He said clients learn quickly, are more inclined to make decisions themselves, and are drawn to the app's investor education games and social community.
Chinese smartphone maker Xiaomi and Wall Street investing guru Jim Rogers are among Tiger Brokers' other backers.
jimcramer ReformedBroker 247WallSt GoldmanSachs MarketWatch One of the start-ups, Beijing-based Tiger Brokers, is expected to raise just over $100 million in a Nasdaq listing (ticker symbol TIGR) this week after it announced pricing of shares on Wednesday Beijing time.
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