In Fang Leis opinion, this is due to the fact that tiger has a huge retail user group. Chinese companies listed in the United States hope to learn more about their Chinese investors and become shareholders of the company.
But tigers ambitions go beyond that. Recently, tiger has won five new financial licenses, such as investment research, which has successfully formed a business closed loop. In addition, tiger securities is opening up a second battlefield outside the United States.
Rising up: a problem solver of zhonggegus pain points
Chinese IPO companies in the United States hope that institutional and individual investors in the United States can understand them more fully. According to Fang Lei, a partner of tiger securities, the underwriter of a Chinese company must be CMT and try its best to reduce the cognitive differences between the two sides.
But before that, the big investment banks who tutored Chinas new economy companies often used traditional financial thinking to understand the companys attributes and business, which made it difficult for them to explain the companys core business model to investors during roadshows.
Therefore, for many years, how to eliminate the cognitive barriers between Chinas new economy companies and investors has been a difficult problem in the US capital market.
But it turns out that problems dont last forever. The surging tide of the times has given birth to such problem solvers as tiger securities. In this regard, Fang Lei believes that this is due to the inherent gene of tiger securities.
In the following three years, tiger securities brokerage business continued to make efforts, and the cumulative trading scale quickly exceeded trillion yuan. At the same time, tigers investment banking team has also begun to prepare.
Guo Dajiang is a partner of tiger securities investment banking business and a witness to the implementation of from 0 to 1 in investment banking business. Most of the companies we contacted last year didnt know tiger could still be an underwriter. This year, not only did a lot of customers come to us on their own initiative, but also local institutions in the United States would actively contact us to place orders.
In his opinion, the reason behind this change is that tiger securities itself is an entrepreneur. He is on the track of the new economy. He has also experienced the whole process of American IPO, and understands the demands of new economy companies better.
Compared with traditional investment banks that rely heavily on offline investment banks, the technology investment bank tiger securities, based on the background of independent R & D and innovation investment banks, has the advantages of comprehensive coverage of over 500 top investment institutions in the world and a number of funds focusing on China capital stocks, as well as millions of business users as the foundation. Its institutional and retail brokerage business volume can help investment banks very well Business.
In the past, big companies such as Goldman Sachs and Morgan were the most valued by the companies when they issued IPOs. But now, with the rise of Chinese investors in the global market, China capital company is increasingly relying on Chinese investment groups. Tiger securities is playing an increasingly important role in the underwriting group.
In the first half of this year, tiger securities contributed US $195 million, US $360 million and US $110 million in the IPO of soundnet, burning stone and Blue City brothers, respectively.
In the interview, Fang Lei gave two examples to the emperor. One is huise insurance. In huise IPO, in order to help the company successfully issue tiger securities, the investment bank team introduced Xiaomi as its strategic shareholder to help both sides find common interests to the greatest extent.
In fact, tiger securities is not only the underwriter of China capital stock IPO, but also its friends. Many of our IPO customers are also customers of our ESPO business. They think tiger is a trusted partner, Fang said.
For decades, few outsiders have been able to occupy a place in the investment banking industry of the United States. But tiger securities, an Internet brokerage, seems to be an exception.
According to the 2020q2 financial report of tiger securities, during the reporting period, other income of tiger securities mainly from investment banking, ESOP and other institutional businesses reached US $2.5 million, up 54.1% year-on-year.
Among them, tiger securities participated in the underwriting and distribution of 7 IPO of China capital stock in the second quarter and 13 IPOs in the first half of the year, making tiger securities the largest underwriter for Chinese companies to list in the United States.
In fact, this is not the first time tiger securities has won the top spot in the jungle of traditional American brokers. According to the financial report of tiger securities in 2019, tiger securities has underwritten 12 IPO cases of China capital stock in the United States throughout the year, making it the largest underwriter.
In Fang Leis opinion, this is due to the evolution of the technology wave and the dimension reduction of the new investment bank to the traditional investment bank.
Reviewing the development history of American securities investment banks, we can clearly see that the first generation of securities investment banks in the United States was mainly established before 1975. For example, Morgan Stanley and Goldman Sachs rose respectively in two industrial revolutions.
Today, the tide of Internet technology is surging and surging, and finance is deeply integrated with Internet technology, so the third generation of securities investment bank represented by Tiger securities is rising.
In the past six years, tiger securities has continuously increased its research and development of science and technology, and its app platform has gone through 302 update iterations.
Today, tiger securities has been able to accurately depict user portraits and push thousands of people with information. In addition, tiger securities app can enable tens of thousands of people to watch the IPO roadshow at the same time, and tens of thousands of securities accounts can be cleared at the same time.
Compared with traditional investment banks, tiger securities faces not only institutions and high net worth customers, but also millions of small and medium-sized investors, so it has a stronger natural demand for the accuracy and efficiency of massive customer order data processing.
But this is hard to imagine on the platform of traditional securities investment banks in the United States. For example, Morgan Stanley and other major international investment banks still do not have their own app, so transactions can only be entrusted by phone, and they often cant call during peak periods.
This is due to the differences in economic forms between China and the United States, which will also lead to differences in the future fate of securities investment banks in different times.
The future: International Investment Bank attacker
Tiger securities is building its unique moat in the U.S. capital market and taking it as a fortress to move forward to the global market.
Recently, tiger securities has won five U.S. financial licenses, including investment research, securities proprietary trading, and U.S. government securities broker. So far, tiger securities has more than 20 financial licenses in the US market. This also means that tiger securities has formed a closed-loop business from brokerage business, investment research, securities issuance and underwriting, proprietary investment, wealth management to liquidation.
With multiple advantages, tiger securities has successively won the IPO orders of two new energy vehicles. On August 27, Xiaopeng auto was successfully listed in the US stock market, and its share price rose 41.47% on that day. Tiger securities, the underwriter of Xiaopeng auto, contributed $2.4 billion in orders. Previously, tiger securities also acted as the underwriter of the ideal car, contributing $1887 million in orders.
But Wu Tianhuas business ambition is obviously more than that. It is revealed that tigers small goal in investment banking business this year is to open up a second battlefield outside the US market.
In June this year, Netease went back to Hong Kong for a second listing. Tiger securities is the only Internet broker in its international placement, contributing nearly HK $5 billion in institutional orders. In the same month, Warner Music returned to the U.S. stock market, and tiger securities was also the only Chinese funded Internet broker in its underwriting group. Earlier, tiger also participated in the IPO of zoom, and gained a lot in the international battlefield.
But for now, one question is why tigers investment banking business accounts for less than 10% of revenue?
Through a careful analysis of the ESPO business acquired by Tiger securities this year, we can see that Huixuan and a large part of China general stock companies were clients of tiger securities investment banking business. In the second quarter, more than 10% of the new customers of tiger securities came from ESOP customers, and the feedback effect was obvious. With such a long cycle, more and more new economy companies choose to grow with tiger securities. They share the ups and downs of growth and IPO together. In just two years, tiger securities team on Wall Street has completed what Chinese investment banks have been able to accomplish in the past few years. Tiger securities is listed with Goldman Sachs and Morgan in more and more new economy companies prospectuses. Now its main role is the underwriter, and it is moving towards the lead underwriter in the future. Tiger securities has begun to gradually lay out financing, M & A, IPO, investment and research links, and has absolute platform advantages in IPO retail distribution. This Matthew effect is becoming more and more obvious, and it is becoming a new force that can not be ignored by Wall Street investment banks. Source: editor in charge of mass news: Chen Tiqiang_ NB6485
Through a careful analysis of the ESPO business acquired by Tiger securities this year, we can see that Huixuan and a large part of China general stock companies were clients of tiger securities investment banking business. In the second quarter, more than 10% of the new customers of tiger securities came from ESOP customers, and the feedback effect was obvious.
With such a long cycle, more and more new economy companies choose to grow with tiger securities. They share the ups and downs of growth and IPO together.
In just two years, tiger securities team on Wall Street has completed what Chinese investment banks have been able to accomplish in the past few years. Tiger securities is listed with Goldman Sachs and Morgan in more and more new economy companies prospectuses. Now its main role is the underwriter, and it is moving towards the lead underwriter in the future.
Tiger securities has begun to gradually lay out financing, M & A, IPO, investment and research links, and has absolute platform advantages in IPO retail distribution. This Matthew effect is becoming more and more obvious, and it is becoming a new force that can not be ignored by Wall Street investment banks.