Weak Nasdaq debut for Chinese cyber celebrity agency

Chinese internet celebrity agency Ruhnn suffers a near-40% drop in its share price on the first day trading in New York. We highlight some of the risks in its business model.

Thanks to the development of social media, celebrities with millions of followers can easily turn their huge fan bases into real money  just ask US celebrities like Kylie Jenner or Kim Kardashian.

And it's not just confined to US celebrities, as evidenced by Ruhnn Holding, a Chinese agency for internet celebrities who peddle their influence for e-commercial ends, which listed on Nasdaq on Wednesday in a downwardly revised $125 million initial public offering. 

It didn't all go to plan, though, as the share price sank 37% on the first day of trading, reflecting the fragility of its internet celebrity ecosystem and perceived...

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