BEIJING — In a notable indication of their ambitions, Chinese firms are aggressively pursuing global markets, exemplified by a landmark stock offering on Shanghai’s tech-oriented STAR board that lists the United States as a key target market alongside China.
Insta360, a Shenzhen-based camera manufacturer and competitor to GoPro, successfully raised 1.938 billion yuan ($270 million) during its listing on the STAR board on Wednesday, operating under the name Arashi Vision. The company’s shares surged by an impressive 274%, elevating its market capitalization to 71 billion yuan ($9.88 billion).
Last year, revenue distribution for Insta360 was balanced among the U.S., Europe, and mainland China, with each region representing just over 23% of total income. Since launching its 360-degree cameras in Apple Stores in 2018, the company has since expanded its product line, featuring multiple models priced in the several hundred dollar range, alongside proprietary video-editing software.
Co-founder Max Richter expressed confidence in sustained U.S. demand, downplaying concerns over geopolitical tensions. “We are staying ahead just by investing into user-centric research and development, and monitoring market trends that ultimately meet the consumer’s needs,” he stated in a Finance Newso interview prior to the STAR board listing.
The Shanghai STAR Market was launched in July 2019, following Chinese President Xi Jinping’s announcement of initiatives to bolster tech companies. Modeled after the Nasdaq, the STAR board aims to facilitate high-growth tech firms while imposing stricter requirement criteria to curb speculative trading.
According to a Finance Newso analysis of data from Wind Information, only 12% of companies on the STAR board reported that more than half of their revenue was derived from international markets in 2019. This figure increased to over 14% in 2024 with the addition of hundreds of new firms.
King Leung, global head of financial services, fintech, and sustainability at InvestHK, emphasized that this shift signals a growing trend. “We are just seeing the tip of the iceberg. More capable Chinese firms are going global,” he noted.
Leung highlighted successful global operations of firms such as battery manufacturer CATL, which went public in Hong Kong last month. “There are numerous capable tier-two and tier-three companies emerging,” he added.
InvestHK, a Hong Kong government department dedicated to attracting investment, has facilitated connections between mainland Chinese firms and overseas opportunities, including an initiative to the Middle East last month.
Roborock, another company listed on the STAR board specializing in robotic vacuum cleaners, recently announced ambitions to further penetrate the Hong Kong market. More than 50% of its revenue in the previous year came from international sales.
At this year’s Consumer Electronics Show in Las Vegas, Roborock showcased a vacuum equipped with a robotic arm designed to navigate and eliminate obstacles during cleaning, subsequently launching it in the U.S. for $2,600.
Other consumer-focused Chinese companies remain undeterred by escalating tensions between the U.S. and China. In November, Hisense, a manufacturer of home appliances, indicated its goal of becoming the leading television seller in the U.S. within two years. Recently, Bc Babycare announced its official entry into the U.S. market, promoting its global supply chain to mitigate tariff risks.
New phase of expansion
Chinese firms are increasingly pursuing international markets in recent years, driven in part by a slowdown in domestic growth and tepid consumer demand stemming from the Covid-19 pandemic.
This trend is evolving into a third stage, wherein companies prioritize building their own international brands, establishing regional offices, and hiring local talent, according to Charlie Chen, managing director and head of Asia research at China Renaissance Securities.
This shift marks a departure from earlier phases when Chinese companies primarily manufactured products for foreign brands, followed by a period of joint ventures with foreign entities.
Insta360 has its main manufacturing facilities in Shenzhen but has established offices in Berlin, Tokyo, and Los Angeles. Richter mentioned that the Los Angeles office emphasizes services and marketing, marking its commitment to the U.S. market with notable events, including a product launch held at New York’s Grand Central Terminal this past April.
Chen anticipates that the next phase of international expansion will see Chinese firms diversifying their product offerings. He pointed out that while previous companies focused mainly on home appliances and electronics, there is potential for significant growth in markets such as toys.
One such example is Pop Mart, a Beijing-based company that has rapidly gained worldwide prominence in the toy industry, primarily through its popular Labubu figurine series.
In 2021, Pop Mart’s total sales were 4.49 billion yuan domestically. By 2024, international sales alone exceeded that figure, reaching 5.1 billion yuan, a remarkable increase of 373% from the previous year, while domestic sales rose to 7.97 billion yuan.
Chris Gao, head of discretionary consumer at CLSA, noted that “it established another Pop Mart versus domestic sales in 2021.” Although Pop Mart does not publicly disclose detailed information about its global expansion strategies, an independent blogger has compiled a list of at least 17 U.S. store locations as of mid-May, most of which have opened in the last two years.
Pop Mart has excelled at developing or acquiring rights to popular characters, and Gao predicts their global growth will persist as the company plans to expand its store footprint internationally. He attributes this potential growth to an increasing consumer preference for character-driven products in times of stress and widespread economic uncertainty.
