China has the world’s second biggest equity market behind the U.S., but the large market is extremely volatile. As the recent stock plunge rattles traders, as many as 500,000 Chinese investors are looking to invest their money in the U.S. stock market.
To tap into this market, Chinese smartphone maker Xiaomi has injected over 100 million yuan ($15.6 million USD) series A into an online brokerage startup Tiger Brokers.
Tiger Brokers is the developer of a web securities and stock transaction system that provides internet brokerage business for US and Hong Kong stocks as well as stocks in China’s A-share market. Its app, ‘Tiger for US Stocks’, is characterized by a Chinese interface and supports multiple handy features like one-click short selling.
This is the largest funding boost the company has received so far. They have recieved previous financing from more than 20 strategic investors include Greenwoods Investment, ZhenFund, China Renaissance K2 Ventures, and Wang Xing, founder of group-buying site Meituan.
As China’s internet finance industry boom continues, online stock brokerage business is potentially a hot up and coming sector. Tiger Brokers’ internet background matches Xiaomi’s ambition in online financing platforms, through which the smartphone maker may capitalize on its huge user base and maturing brand ecosystem.
Over the past few years, Xiaomi has been making big strides into online finance with investments into P2P lending site Jimu Box and online financial service Caogentouzi, as well as launching their own money market fund.