The Chinese are into "Made in China"

During the pandemic, more and more Chinese people have discovered a love for their own products "Made in China". This goes hand in hand with an increasing aversion to foreign brands, which is fueling the demand for domestic goods and offering investors new opportunities. In the first five months alone, Chinese consumer goods companies raised the equivalent of around eleven billion dollars from investors, as the Chinese investment bank Cygnus Equity calculates. That is more than twice as much as in the previous year. "Beauty products, food and beverage brands are the most popular," says Cygnus managing director Ming Jin. The Chinese hotpot variant of fondue and ramen noodles, a special type of noodle that is widespread in Japan but originally comes from China, have recently been particularly popular. Bankers and investors report that up to 200 brands are currently looking for fresh capital from investors in the People's Republic. "China is the easiest market to build something from zero to a 100 million yuan (equivalent to almost 15.5 million dollars) sales target," says a donor who has invested in the tea chain operator Nayuki and did not want to be named. The Hong Kong IPO last week brought Nayuki $ 656 million and gave the company a valuation of $ 4.4 billion. That is already more than twice as much as for a financing round in December. Genki Forest, a soft drinks brand that wants to challenge Coca-Cola, went up even faster. The beverage company was valued at six billion dollars after a capital raising round in April, ten times higher than 18 months ago. Investors such as the private equity arm of Louis Vuitton owner LVMH and the state investor Temasek from Singapore also got involved.