How full equity buyouts could help China’s cooling bubble tea sector turn a new leaf

Fuelled by the bubble tea boom in recent years and an intensely competitive market, financial investors have shown growing interest in major brands, shifting their playbook from early-stage bets and initial public offering (IPO) subscriptions to full equity buyouts. Growth of mid to high single digits was now forecast for the sector in China, down from double-digit growth in previous years, analysts said. The slowdown followed years of capital being raised and deployed to chase the same growt...

By Zhu Wenqian