The mass affluent in China are turning to global stock markets, helped by online trading platforms such as Tiger Brokers. flow looks at how the fintech’s Deutsche Bank-sponsored American Depository Receipt programme is further fuelling these investors’ ambitions
China’s affluent middle class continues to grow, and they are seeking to invest more in global markets1. Driven by internet-centered lifestyles and influenced by their nation's technology platforms such as WeChat and Baidu, the mass affluent Chinese behavior is changing not only as consumers, but also as investors. Their investment appetite is spurred by the rise of mobile online trading and the growing interest among millennials to further balance their investment portfolios with securities.
Recent IPOs such as those of UP Fintech Holding Limited are capitalising on this trend. The company, also known as Tiger Brokers, was launched in 2014 as an online stock brokerage startup backed by Interactive Brokers Group Inc, Xiaomi Inc, ZhenFund and notable Wall Street investor Jim Rogers. As a rising star in the industry, the fintech company serves Chinese investors, enabling them to build their global portfolios.
Embedded in this strategy is the vision of Tiger’s management team members, who previously worked at banks and tech companies including Goldman Sachs Group, Inc, CME Group, Guosen Securities, NetEase Inc, Tencent Holdings Ltd, Baidu Inc, and Xiaomi Inc, to cater to Chinese investors’ needs for an easier, time-zone and language friendly way of accessing global markets in a quick and efficient manner. “Right now they are able to trade all major stock exchanges,” comments CFO John Zeng. “We enable them to trade stocks in Hong Kong, US, London and A-Shares through the Shanghai/Shenzhen Connect programs through our platform. Going forward we will add more exchanges, such as Singapore.”