Chinese ride-hailing company Didi became a retail favorite on its first day of trading

didi dirver
Reuters/Jason Lee

  • Didi has become a retail-investor favorite on its first day of trading, Fidelity data show.
  • The stock topped retail buys in Exela Technologies and AMC Entertainment.
  • Shares of the Chinese ride-hailing company surged as much as 28% during its IPO Wednesday.
  • See more stories on Insider’s business page.

Chinese ride-hailing company Didi has already become a retail-trader favorite in its first day on the public markets, Bloomberg first reported.

According to data from Fidelity, Didi shares ranked number one among retail traders Wednesday, while Exela Technologies, which has seen heightened interest from Reddit investors this week, was second, and well-known meme-stock AMC Entertainment was third.

Didi had more than 32,000 buy orders as of 3:15 p.m. in New York, compared to Exela and AMC, which each had about a third of that, the data showed.

Didi’s debut is the second largest among Chinese companies, after e-commerce giant Alibaba’s initial public offering in 2014. The shares soared as much as 28% in their first day of trading, giving Didi an approximate $86 billion valuation, Markets Insider reported.

The valuation makes Didi the second largest ride-hailing app in the world after Uber, which is valued at $93 billion.

Rumors about a potential IPO spread for several years before the company eventually filed its prospectus earlier this month, Fortune reported. Among Didi’s largest shareholders are investment firm SoftBank, which has a 21.5% stake, Uber, which has a 12.8% stake, and Tencent, which has a 6.8% stake, Fortune said.

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TP ICAP and Fidelity are launching a crypto exchange for big players – a sign that institutional interest is sticking

Bitcoin logo mining hand person
Bitcoin shot up in the first months of 2021 before tumbling in May.

  • TP ICAP is launching a crypto exchange aimed at big players such as hedge funds and investment banks.
  • The major financial broker has teamed up with Fidelity and Standard Chartered-backed Zodia Custody.
  • It is a sign that institutional interest in bitcoin and crypto is sticking, despite the fall in prices.
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Market infrastructure company TP ICAP is launching a cryptocurrency exchange aimed at investment banks, hedge funds and other financial institutions, in a sign that big players are still keen on digital assets despite the recent plunge in prices.

Fidelity Digital Assets and Zodia Custody, which was launched by Standard Chartered, have also backed the project and will provide custody services, the companies said Tuesday.

“Client demand to trade spot crypto assets is significant and growing,” said Simon Forster, co-head of digital assets at TP ICAP, cited in the companies’ announcement. “But to date many of our clients have been prevented from accessing crypto asset markets due to current limitations in market infrastructure.”

It is a sign that major players in financial markets remain interested in crypto assets, despite bitcoin’s slide from close to $65,000 in May to around $35,660 on Tuesday.

Institutional investors are put off by the design of crypto exchanges where trading and storage are done in the same place, TP ICAP said.

It hopes its new crypto-trading platform will appeal to big players by giving them access to liquid trading in bitcoin, ether and other crypto tokens, as well as storage for their assets at separate custodians.

TP ICAP, a global company that facilitates transactions between financial institutions, said the trading platform will be made available to its customers around the world. It will aim to provide the market standards and trading infrastructure viewed as a minimum in traditional markets, it said.

Fidelity sees the joint effort as key to bringing more big players on board with crypto assets. “Collaborating with industry leaders like TP ICAP to bring to market innovative solutions that strengthen the digital assets ecosystem is critical to enabling even more institutional participation,” said Chris Tyrer, head of Fidelity Digital Assets in Europe.

The new platform has already started to onboard customers, but its operation is subject to approval by the Financial Conduct Authority in the UK, where TP ICAP is based.

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Meme mania pushed Gen Z into the stock market – and now they’re learning investing fundamentals from TikTok and Instagram

TikTok General View phone stock market readouts
Getty Images

  • 41% of Gen-Z investors use social media to educate themselves on investing, Fidelity said.
  • People in Gen Z who are interested in investing often turn to TikTok and Instagram first before going to family and friends.
  • Many Gen Z individuals were prompted by recent meme-stock mania to start learning about investing.
  • See more stories on Insider’s business page.

Gen Z was “awakened” to investing amid the meme-stock mania this year, and now they’re turning to social media for advice.

A new report from Fidelity showed more than half of Gen Z-aged people surveyed made a trade in the first three months of 2021 when the meme-stock craze took hold, with GameStop leading the way. Now, the generation of young adults aged 18-24 is wanting to educate themselves, and they’re turning to social media sites like TikTok and Instagram for help.

About 41% of Gen-Z investors use social media to educate themselves on investing, the survey showed. That’s more than their older counterparts, with 38% of Millennials and 25% of Generation X using the platforms for advice.

Kelly Lannan, Fidelity’s vice president of young investors, said social media is the most likely place Gen-Z investors turn to first when seeking advice. After that, they most likely seek advice from people close to them before going to financial services platforms.

“Good or bad people are still turning to social media,” Lannan told Insider in an interview.

Whether it’s TikTok, YouTube, or Instagram, “We want to be there, so we can make sure that we are doing our part in ensuring that Gen Z is getting the right information, and they’re not just listening to someone who wants to be famous on these platforms,” she said.

Nearly half of Gen Zs surveyed said they’re feeling more educated to motivate themselves on trading and investing. “That’s a really good thing if people are starting to ask questions and engage more with their finances,” Lannan said.

The investing side of TikTok, better known as “StockTok,” is blowing up, and the hashtag “#investing” has garnered more than 2.8 billion views. Many of the videos are centered around advice and education. Some provide useful tips while others miss the mark.

For young investors, stocks are the most popular, with growth and dividend stocks being the most popular, and meme stocks closer to the bottom of the pool, according to a recent survey from the Motley Fool.

Even so, many Gen Zs started learning more about the stock market when an army of retail traders mobilized on Reddit’s Wall Street Bets poured into GameStop along with other so-called meme stocks to drive a short squeeze. About 58% of the young group said it was “more excited” to learn about the stock market following the meme-stock market volatility, the survey showed.

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A newly launched crypto trade group, which includes heavyweights Square and Coinbase, is looking for new leadership

The photo shows physical imitations of cryptocurrency
The photo shows physical imitations of cryptocurrency

The newly launched Crypto Council for Innovation, an industry group that includes heavyweights such as Square, Fidelity, Coinbase, and Paradigm, is looking for a new boss, DealBook first reported Friday.

Gus Coldebella, who started and led the alliance as the executive director is stepping down. Coldebella, who is the chief policy officer at the investment firm Paradigm, is leaving that post as well.

“With CCI now on its feet, I thought the timing was right to take on a new challenge,” he told DealBook Friday.

CCI was convened by San Francisco-based Paradigm, founded in 2018, which invests in crypto-assets and businesses from the earliest stages of formation through maturity.

The alliance, formed in April, was meant to boost the potential of cryptocurrencies by educating policymakers, regulators, institutions, and individual investors on the benefits of digital assets, which have seen exponential growth in recent years.

It also aimed to debunk many “wrong impressions” the public may have towards cryptocurrencies through government relations, public education, and research publication, according to its website.

The news of CCI’s hunt for new leadership comes as authorities are mulling ways to increase oversight of the crypto space.

JPMorgan CEO Jamie Dimon urged regulators to scrutinize cryptocurrencies more closely at a recent congressional hearing and blasted the digital coins as inferior to traditional assets.

“Something that’s not supported by anything, I do not believe has much value,” he said.

Cryptocurrencies have struggled since bitcoin peaked at the time of Coinbase’s listing on April 14, which many viewed as a milestone for the digital asset space. Extreme volatility in the past two weeks has slashed bitcoin’s market cap nearly in half.

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Bitcoin ETFs from Fidelity and Skybridge Capital are under review by the SEC

Anthony Scaramucci
Anthony Scaramucci’s SkyBridge Capital is waiting on SEC approval of a bitcoin ETF.

  • Bitcoin exchange-traded fund applications from Fidelity and SkyBridge Capital are under review by the Securities and Exchange Commission.
  • The SEC is currently looking at four other applications to launch bitcoin exchange-traded funds.
  • A decision on asset manager VanEck’s application is expected in June.
  • See more stories on Insider’s business page.

The Securities and Exchange Commission is reviewing applications for bitcoin exchange-traded funds filed by Fidelity and SkyBridge Capital, the hedge fund founded by Anthony Scaramucci.

The SEC is examining a request from Fidelity Investments to launch the Wise Origin Bitcoin Trust, according to a filing dated May 25, and it is looking at SkyBridge’s petition to start the First Trust SkyBridge Bitcoin ETF Trust, according to paperwork dated May 21.

The moves expand on the regulatory agency’s review of other potential bitcoin ETFs. The US has yet to approve a cryptocurrency-based ETF. Money management firms are seeking to capture potential gains from exposure to bitcoin, which has been pulling in more interest and activity from institutional and retail investors and companies.

Scaramucci’s SkyBridge is working with investment firm First Trust Advisors on the ETF project and in March filed for regulatory approval. If greenlighted, the ETF would trade on the New York Stock Exchange Arca, which specializes in exchange-traded listings.

Fidelity also in March submitted paperwork to launch a bitcoin ETF to track the digital currency’s performance. If that wins SEC approval, shares of the Wise Origin Bitcoin Trust would trade on Cboe Global Markets.

Investors are waiting to hear from the SEC if it will grant clearance for bitcoin ETFs from Kryptoin, Valkyrie, WisdomTree, and VanEck. Applications for about 10 others ETFs are pending, according to CoinDesk.

The SEC in late April said it expected to release its ruling on VanEck’s application on June 17. The agency said it was delaying the decision to take an “appropriate” amount of time for the review. A review period can be extended for up to 240 days.

Read more: A crypto expert shares the top tips to pick worthwhile NFTs in a landscape littered with scams – including how to avoid getting caught up in Reddit-fueled hype that can cost you millions of dollars.

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Fidelity plans to offer no-fee investment services for teenagers who want to trade stocks and ETFs

fidelity investments
  • Fidelity Investments will offer no-fee investing accounts to 13- to 17-year-olds.
  • The firm said parents can use the accounts as a “teaching moment” to discuss finances.
  • Analysts have previously said Gen Z will be the most disruptive generation ever to markets.
  • See more stories on Insider’s business page.

Teens will soon be able to use a new no-fee service from Fidelity Investments to buy and sell stocks, exchange-traded funds, and Fidelity mutual funds.

The firm plans to offer investing accounts, along with debit cards and savings accounts, to 13- to 17-year-olds whose parents or guardians also bank with Fidelity, according to a Tuesday press release.

Parents can see what their teens are doing in the account and discuss the reasoning behind their child’s financial decisions. “Fidelity is committed to responsibly supporting young investors,” Jennifer Samalis, senior vice president of acquisition and loyalty at Fidelity Investments, said in the press release.

The youth account, which will become a standard brokerage account with more options when the teen turns 18, will also offer educational resources. In a pilot program of the new offering, Fidelity said 90% of parents and guardians used the account as a “teaching moment” to discuss saving, spending, and investing.

“Opening the account can create new opportunities for parents/guardians to engage their teens about money concepts, then allow the teens to independently take action and learn by doing,” Fidelity spokesperson Robert Bearegard said to Insider in an email.

Read more: Northwestern Mutual’s chief investment strategist told us why growth investors are in for ‘painful’ months ahead as the economy heats up – and shares his 2 highest conviction trades right now

The offering comes amid the firm’s push to attract new investors. Fidelity added 1.6 million accounts for individuals 35 years old or younger in the first quarter of this year, which is more than three times the amount from a year earlier, the Wall Street Journal reported, citing the firm.

Bank of America analysts have previously said Gen-Z will be “the most disruptive ever” to the stock market, pushing it to focus more on technology, sustainability, and climate change, and less on classical institutions.

Social media platforms like Reddit and TikTok have helped drive the new wave of investors, along with trading apps such as Robinhood and Webull.

At the beginning of the year, an army of day traders on Reddit drove the GameStop stock price to surge from single to triple digits in an effort to squeeze short sellers. The rally signaled the power of a new wave of investors and a new trend of investing in so-called “meme stocks” like AMC and GameStop, among others.

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