At present, the financing needs of Chinese enterprises to go public overseas remain strong. Yang Rui, Chief Representative of Piper Jaffray China recently revealed that at least 20 plus Chinese enterprises are queuing up for an IPO overseas. A report issued by China Merchants Securities also pointed out that this year overall, Chinese concept stocks still face large stock price fluctuations and low valuation. However, it is expected that in the second half of the year, market pessimism may improve.
Reporters learned from CAR Inc. that after the Spring Festival holiday, the rental prices of most car models have almost been halved. During the Spring Festival, renting a BMW MINI cost 1509 yuan per day, now it only costs 789 yuan per day. In addition, popular models such as Buick Excelle, Volkswagen Lavida, and Hyundai Yuedong have all dropped in price by nearly half.
Prior to this, China's largest car rental company - CAR Inc. - also submitted its listing application to the U.S. Securities and Exchange Commission on January 18th. The company plans to list on the New York Stock Exchange and raise approximately 3 billion US dollars.
The car rental industry is a capital-intensive, low-profit industry, and also one that requires substantial financial investment. "This IPO of CAR Inc. could be considered the most complex among mainstream Chinese concept stocks' IPO history," Wu Bin told Caixin journalists.
With the growth in car rental demand, some consumers have expressed hope that insurance companies can introduce insurance specifically designed for personal car rentals, where insurance can be purchased based on the number of days rented, and coverage can be selected according to individual situations, making insurance purchases clear and straightforward. A service representative from a car rental company stated that they hope there will be short-term car rental insurance options available, allowing renters to purchase insurance on-site based on their needs, which would save time explaining to consumers and avoid any impression that the car rental company is profiting from the insurance fees. For more information, please visit our car rental website or call us at www.wodingche.com. We welcome your inquiries!