SHAH ALAM - At just 30 years old, Chinese entrepreneur Zhang Junjie has ascended to billionaire status after his tea chain, Chagee Holdings, debuted on the US stock market, despite mounting tensions between China and the United States, which have contributed to economic uncertainty and market instability.
Amid a sluggish IPO market and ongoing concerns about the future of Chinese companies on US exchanges, Chagee began trading on the Nasdaq on April 17.
By midday in New York, Chagee’s shares had surged by 40 per cent, pushing Zhang’s net worth to an estimated US$2.6 billion, according to the Bloomberg Billionaires Index.
His wealth is entirely tied to his ownership in Chagee.
The company declined to comment on the development.
Zhang, the Chief Executive Officer (CEO) of Chagee, joins a growing cohort of Chinese entrepreneurs benefiting from the popularity of tea chains.
Among them are the founders of Mixue Group, known for its US$1 bubble tea, coffee and ice cream, who collectively amassed approximately US$8 billion following their Hong Kong listing in 2025.
However, the rapid expansion of the tea industry has saturated markets such as Hong Kong, leading to diminished investor interest.
Several bubble tea companies have seen their stock prices drop shortly after their IPOs. Shen Meng, a director at Beijing-based investment bank Chanson & Co., commented that the narrowing capital interest in the sector has made the US stock market the most viable option for companies like Chagee to secure significant funding and valuations.
Zhang founded Chagee in 2017 in Yunnan, a province in southwest China bordering Myanmar, Laos, and Vietnam.
The company’s name is inspired by the Chinese opera "Farewell My Concubine," and its logo features a young female character from Peking Opera, known as a huadan.
Differentiating itself from bubble tea brands, Chagee focuses on premium milk teas made from traditional Chinese blends such as green, black, and oolong teas.
Its store design mimics the relaxed ambiance of Starbucks, and its drinks are priced at just over U$2.
Zhang has emphasised the brand’s commitment to reviving ancient tea-making methods using modern technology to cater to health-conscious consumers increasingly moving away from sugary beverages.
According to iResearch, China’s freshly made tea drinks market is projected to grow from 273 billion yuan in 2024 to 426 billion yuan by 2028.
The premium segment, averaging 17 yuan per cup, grew from 11 per cent of the market in 2019 to 26 per cent in 2024.
Chagee now operates more than 6,440 stores globally, with most located in China and others in Malaysia, Singapore, and Thailand. Of these, 6,270 are franchised, while 169 are company-owned.
Despite its rapid growth, Chagee has faced obstacles in its international expansion.
In Malaysia, the brand encountered backlash after its app displayed Beijing’s controversial nine-dash line claim over the South China Sea.
A similar issue has led to investigations in Vietnam, where the brand plans to expand.
By listing in New York, Chagee appears to be positioning itself as a global competitor alongside established brands like Starbucks, said equities analyst Wang Xinyao on Smartkarma.
However, she noted that the ongoing US-China trade war has added an unexpected layer of complexity to Chagee’s ambitions.