Qifa, a Chinese digital platform focused on trade with Russia, has postponed its IPO on the Moscow Exchange that was originally scheduled for August 2024. The company aimed to raise approximately US$18.9 million (1.7 billion roubles) by selling 20% of its shares. Founder Sun Tianshu cited high interest rates and a challenging business environment as the primary reasons for this delay, which is now expected to occur in October or November 2024. This decision comes in the wake of the Russian central bank's increase of its key interest rate by 200 basis points to 18% in July 2024, marking the highest rate in over two years [efe4dc27].
Despite the postponement, Qifa has experienced significant growth, with its revenue surging 75% year-on-year to 5.7 billion roubles in 2023, primarily driven by consumer goods sales. However, Sun noted that ongoing barriers in Russo-Chinese trade persist, despite the potential to expand trade turnover from US$240 billion in 2023 to US$400 billion. Payment delays and rising costs have impacted Russian companies trading with China since March 2024, although reports indicate that the situation is gradually improving [efe4dc27].