China Renaissance hits paydirt after stablecoin issuer Circle’s shares double on debut
The Chinese bank invested in the US tech firm in 2018 through its Huaxing New Economy Fund
China Renaissance, which has funded many leading Chinese technology firms, made another winning bet after shares of stablecoin issuer Circle Internet Group more than doubled on their debut in New York.
The Chinese investment bank said in a filing to the Hong Kong stock exchange on Friday that it had invested in Circle, which was founded in 2013, in 2018 through its Huaxing New Economy Fund.
The investment reflected its “strong confidence in the growth prospects of the digital asset industry”, the statement said.
China Renaissance did not disclose the amount of its investment in Circle. Circle also did not disclose the stake in its initial public offering prospectus, suggesting it was likely to be less than 5 per cent.
Circle is the issuer of USDC, the second-largest stablecoin, which accounted for nearly 30 per cent of the market at the end of March. A stablecoin is a type of cryptocurrency designed to maintain a fixed value by being pegged to a reference asset, typically a fiat currency such as the US dollar.
The company’s shares soared as much as 235 per cent before closing 168 per cent higher at US$83.23on the first day of trading on the New York Stock Exchange on Thursday.