The second largest listing in the US by a Chinese company

The largest listing in the US by a Chinese company in two years will again give investors a chance to own part of the engine of China’s ecommerce boom. ZTO, one of a dozen express delivery companies that work closely with Alibaba, raised $1.4 billion in a listing on the New York Stock Exchange yesterday, piggy backing on the Hangzhou-based ecommerce group’s record $25 billion listing in 2014. ZTO was the biggest US IPO in the year-to-date… Since Alibaba’s listing, ecommerce transactions in China have surpassed the US and last year amounted to $609 billion, compared to the US total of $342 billion. Parcel deliveries have risen yearly by 80 per cent since 2011 to hit $20.7 billion last year… A major part of the success of Chinese ecommerce is down to cheap and fast delivery companies such as ZTO… They ship mountains of small parcels across country and deliver them door-to-door on electric powered tricycles which have become ubiquitous in Chinese cities.

 

Charles Clover, Sherry Fei Ju and Nicole Bullock

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