Investment guru Jim Rogers to invest in Chinese fintech Tiger Brokers

Leading investment guru Jim Rogers will make an investment in Chinese online brokerage firm Tiger Brokers, the first such by the Wall Street billionaire in a Chinese financial technology (fintech) startup.

Beijing-based Tiger Brokers, an online brokerage that allows Chinese investors to buy stocks from US and Hong Kong, recently disclosed its funding round worth $14.5 million (100 million yuan), the third funding round for the company since it was founded three years ago.

It is, however, not known how much Rogers is willing to invest in the firm that has till now raised about $58 million, including the latest round, according to a report from Chinese media outlet Caixing.

Its investors include Xiaomi Technology, China Growth Capital, Greenwoods Investment and Zhen Fund and Citic Securities.

According to a statement on Friday, Tiger Brokers said, Rogers is bullish on the growth momentum of China’s fintech industry claiming that the internet-driven transformation across the financial sector will bring benefits to the ever-growing Chinese investors who seek to optimize their asset allocation.

“What Tiger has been doing, which is use technology to trade around the world, reserve a bright future…Everybody will be able to trade in everywhere and Tiger appears in the right place, at the right time,” Rogers noted.

The three-year-old fintech company provides an app to investors who can invest in big local firms that are listed overseas. Internet company Tencent, Alibaba Group and Lenovo are among such giant Chinese firms which are listed offshore.

In addition to access to US and Hong Kong stocks, and China A-shares, the platform, which is available on smartphones or PCs, supports transactions involving securities margin trading in addition to 13,000 US stocks, share options and ETF products.

More than $100 million in transactions were booked through Tiger Trade in the first month following the initial launch of the platform in 2015.
The monthly dollar value of transactions handled through Tiger Trade jumped 22 times by the end of last year, topping $2.2 billion a month.

Fintech, as a sector has seen unprecedented growth in recent years with investments from both traditional players and venture capital firms. According to a recent CB Insights report, VC-backed fintech firms raised $12.7 billion across 836 deals last year.

Meanwhile, Rogers’ interest in China has built up over a period as has been vocal on Chinese currency and Chinese investments in the US. Though earlier this year, he raised concern over US President Donald Trump’s hawkish stance on China and said he was not optimistic about investment prospects in China amid the backdrop.

However, in one of the articles, The Roaring Dragon, written by Rogers, said that as an approach he was exploring investing in companies domiciled in overseas Chinese communities such as Bangkok, Singapore, Vancouver, etc. that do business in China or with the Chinese.

“The Chinese consider the overseas Chinese almost the same as themselves, giving those outside the country a leg up on other nationalities. Find a few of these companies in which to invest and the alert investor will have found an entry point into the Chinese market,” he says in the article.

He ends the article saying: “Today many Chinese B-shares sell on the New York Stock Exchange as ADRs for small sums. A similar strategy might be to buy all these stocks and hold them through thick and thin. In five, ten, fifteen years there’s an excellent chance that this will be one of the best investments an investor will ever make.”

Also Read:

Fintech in Southeast Asia: Deals up in 2016, but dollars down

China Growth Capital leads $14m funding in Tiger Brokers

China: Citic Goldstone, Huagai Capital back $29m Series B in Tiger Brokers

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.