IH stock is trading up big on October 12, 2020, a day after its IPO as Robinhood traders pile into the stock.

Credit Suisse and Citi acted as joint book running managers for the offering. iHuman is a Chinese e-learning company that offers products such as games, audio books and e-learning apps.

Ask yourself, why are so many Chinese companies with shaky business models like iHuman listing on U.S. exchanges?

The goal here is to raise money for a Chinese company, under a communist government that blocks proper financial disclosures and doesn’t enforce transparency rules.

Why Chinese companies like IH are allowed to list on U.S. exchanges is beyond me, especially after the movie The China Hustle:

Big global corporations like Comcast that give most of their campaign donations to Democrats, don’t want China stocks delisted IMO. Here is how Comcast owned CNBC reports on the delisting of China stocks.

I do not recommend investing in Chinese stocks. I think the Chinese never engage in trade or a deal where they lose. These Chinese stocks are being listed on U.S. exchanges, and they serve as capital outflows to China. They do benefit U.S. book-runners, but it’s at the expense of retail traders IMO. If the Chinese were losing money to U.S. traders by listing on U.S. exchanges, they wouldn’t continue the practice.

finviz dynamic chart for  ih