US investment banker sees bright prospects of China's next-generation tech giants

NEW YORK - A new trinity of Chinese tech companies have promising future in the market, a US investment banker said Wednesday.

The new tech trio refers to Toutiao, Meituan-Dianping and Didi Chuxing, together dubbed "TMD," which are compared with the well-known trio of "BAT," Baidu, Alibaba and Tencent.

"These are interesting prospects that will probably bring fresh blood to the new market," Fan Bao, chairman and CEO of an investment bank China Renaissance told CNBC.

Toutiao, fully known as Jinri Toutiao, or "Today's headlines," is a popular news app in China, which aggregates users' reading habits and tailors offerings via artificial intelligence. It has recorded 120 million daily active users according to its background data.

Meituan-Dianping is an all-in-one app for food delivery, movie tickets, restaurant reviews, group discounts, among other things, for nearly 300 million Chinese, which has become China's largest platform for lifestyle services.

Didi Chuxing is a Chinese ride-hailing giant, which engaged in a fierce subsidy battle with Uber until 2016, and has become the world's second-most valuable startup after Uber.

The investment banker also said 2018 and 2019 are probably going to be busy years for IPO pipelines. "TMD" and Chinese smartphone maker Xiaomi are waiting in the wings.