Alec Macfarlane is a columnist based with Breakingviews’ Asia team in Hong Kong. He was previously with the Wall Street Journal in Hong Kong, covering the Asian IPO market, and has also covered private equity for Dow Jones in London.
Chinese startups raised more cash than Silicon Valley counterparts in the first six months of this year - a first. But despite the $56 bln boost, there are signs mainland festivities are getting quieter, thanks to tighter rules and a cooling economy. A shake-out could follow.
Fresh funding values fintech giant Lufax at $38 bln, double its last valuation. A crackdown on peer-to-peer lenders has hammered rivals, but Lufax appears to have convinced new backers it’s insulated by its shift toward wealth management. It’s not out of the regulatory woods yet.
Instead of a range to help determine the price of the mobile unit’s shares, the figure has been set at 1,500 yen. That suggests fervent demand from retail buyers inspired boss Masayoshi Son to skip the typical sale process. It all but ensures an overly generous $63 bln valuation.