China's used car dealer Kaixin opens trading on US stock market

NEW YORK - Kaixin Auto Group, a Chinese used car platform, had its long-awaited opening-bell ceremony Monday on the Nasdaq to celebrate its listing on the US stock exchange.

The company started trading on May 2 under the ticker symbol of "KXIN" after its business combination with CM Seven Star Acquisition Corporation, a Chinese blank check company formed for the purpose of entering into business ties with one or more businesses.

Kaixin opened at $3.25 per share on Monday to climb as high as $3.29 apiece before decreasing 3.04 percent to $3.19 at close.

Founded in 2015, as a leading premium used car dealership in China, the Beijing-based company pocketed a total revenue of $117 million in 2017 and $431 million in 2018.

Kaixin Chairman Joseph Chen told Xinhua Monday that the company built its competitiveness in a unique business model including on-line and brick-and-mortar dealerships as well as a network of parties that provide a range of value-added and after-sale services.

Kaixin has 14 dealerships covering 14 cities in 12 provinces across China. Its dealership operators have an average of more than ten years of experience in the used car industry, according to the company.

It also provides financing channels to customers and other in-network dealers through its partnerships with several financial institutions in China.

Chen said China's burgeoning second-hand car market would bring tremendous opportunities to his company.

The used car market has been buoyed by a change in attitudes of Chinese consumers, especially the young, toward used cars as the market became increasingly mature, according to Chen.

"Consumers with more knowledge about cars are more willing to buy second-hand cars as it is more cost-effective," he said, adding that the average age of Kaixin's customers is under 40.

Industrial data showed that about 13.8 million used cars were traded in China in 2018, up 11.5 percent year-on-year.