Fintech giant Lufax aims to expand internationally and pushes cash injection from its U.S initial public offering (IPO) and as U.S stock demands sold out last week.
Last Friday, Lufax started to trade on the New York Stock Exchange, bringing up over $2.36 billion. Greg Gibb, the CEO of Lufax, also addresses the advantage of setting the ground for stock marketing in Southeast Asia. According to him, it could be a great long term opportunity.
Lufax stock market slumped approximately 14.3% after the release but still cut some losses to near $12.85 per stake, which is about 4.8% deeper than the $13.50 subsidy price.
The expansion strives to offer small business loans, wealth management products to its partners and financial institutions through their platform. It will also expect to give vast opportunities to other investors overseas after the initial expansion. They moreover prioritize domestic domain markets, particularly Southeast Asia.
Moreover, the plan will bring engagement partnering and thrusts overseas with local brands through supporting their technology. Lufax is also known for its ability to use data and artificial intelligence (AI) to practically help consumers find the perfect financial product solely for them.
Greg also added they are interested in putting some changes around Hongkong, Greater Bay, over the next five years. The Greater Bay area is a scheme proposed by China to connect Hongkong and Macau and major cities in South China.
From 2017, Lufax has launched a wealth supervision outlet in Singapore, Indonesia, and Hongkong. But when it comes to income services for international operations, they are not yet material to the industry, says IPO prospectus.
China and U.S. Tensions
Despite the uncertainties between the U.S and China, Lufax headed to New York. On the other hand, lawmakers and legislators in Washington are tugging for more attention to all Chinese companies by imposing legislation and statutes.
Furthermore, the U.S lends stricter regulations and rules on the sector from Chinese authorities and parliament forces to step down in that business.
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