Staryoo.com, a groundbreaking concept, will offer a Web-based trading platform that allows Chinese institutions and investors to trade in securities and equities. Staryoo.com can change the way millions invest in China. Staryoo.com features investment options that are not currently available in China include: real-time stock market quotes, technical and foundation analysis, expert commentary on the market action and recommendation, investment forums, chat rooms, online banks transfers, remote notification and educational materials such as tapes and books. Users will have the ability to customize the platform’s intelligent graphic interface to suit their investment profile and level of experience.
Internet investment and usage will rise rapidly as a result of China’s recent membership in the World Trade Organization. According to a recent report by the China Internet Information Center, there were 4.5 million Internet users in China as of June, 1999. This is twice the 1998 estimate, and it is expected to rise to 20 millions by 2000. 40 million of the 45 million Chinese investors are individual investors. It is expected that the trading volume of foreign equities markets, mainly the U.S. market, will grow tremendously when they are made available to individual investors. According to Mr. Pen Reng is the Vice President of Shanghai Securities Co. LTD.. The second largest brokerage company in China. It is expected that China will have 250 million investors by 2005. Staryoo.com has anticipated this trend and will be the first to support international trading.
In the last few years, the U.S. stock market for equity securities has experienced a significant increase. Due to a combination of historical market highs and increasing number of issuers on NASDAQ, the large increase in daily trading volume at NASDAQ is a result of both the growing number of issuers on NASDAQ and the historic market highs. At the same time, technology has advanced to the point where more investors are trading online. This has led to an entirely new set of self-reliant value-oriented investors who are more comfortable with electronic commerce. We believe that these same trends will develop in China and that we will be well positioned to take advantage of the significant market opportunity that will exist for faster, easier, more reliable, and less expensive trading systems.
Staryoo.com’s headquarters are in Shanghai, China. There is also a Sunnyvale office in California. Initial seed capital and technical support has been provided by Starmile Systems Engineering, Co. LTD. (Starmile) located in Shuzhou, China. Staryoo.com was established in the United States to serve two purposes. First, it will facilitate the transfer from the Chinese equities marketplace to one which allows access to U.S. equity markets. Second, Staryoo.com must be able to rapidly and efficiently go public in the U.S. to market and develop this trading platform. To reach the goals listed below, additional financing may be required for the fourth quarter (Q4).
1.1 Objectives
- Alpha and Beta testing of Web platform, January 15, Year 1, and May 15, Years 1, respectively with strategic partners from China
- Reach out to two large brokerage firms in order for the platform’s initial deployment by June 1, Year 1
- Get your first round of funding before June 1, Year 1.
- Staryoo.com available for individual investors beginning June 1, Year 1 (without online trading).
- Staryoo.com online trading available starting September 15, Year 1
- Staryoo.com offers U.S. equities market access in China for Q2 Year 2*.
- By Year 1, you will have revenues of $300,000.
- Sign up 18,000 members and 14 brokerages by Q4 Year 1.
- Staryoo.com is now available as a trading site in the U.S. during Q3 Year 3.
- Staryoo.com U.S. public company by Q4 Year 3.
* * * WTO Membership in Q4 Year 1.
1.2 Mission
Staryoo.com’s mission it to offer investors the most comprehensive Web trading platform. We will work tirelessly to ensure that this trading platform is constantly evolving. This means listening to users and continually improving the product range to suit their needs. Staryoo.com is dedicated to providing exceptional customer service that will earn investor trust and confidence.
As we strive for first class image, quality, service and fair profit, both investors and employees will see first-class results. Recognizing that our employees are our most valued resource, Staryoo.com will nurture and reward its’ employees as milestones are achieved, technologies are developed, and the company flourishes.
1.3 Keys for Success
To succeed in this business we must:
- Staryoo.com’s Web-based trading platform is unique among all others. It offers investors more functionality and features that are required for advanced Internet trading.
- Staryoo.com customer service and order transmission ensure 100% customer satisfaction.
- Staryoo.com online brokerage implementation and cost effectiveness ensure 100% brokerage satisfaction
- Starmile’s technical knowledge and client base are leveraged to ensure that Staryoo.com equities trading platform is known and appreciated by all.
1.4 Strategic Advantage
Staryoo.com has a competitive advantage over other Web-based platform providers for trading because of these strategic reasons:
- Starmile has extensive technical knowledge in the field of bank information processing. This includes transaction processing as well as account inquires and settlements.
- Starmile has developed and is ISO9002 certified payment cryptography system.
- Starmile has developed an online non-Web-based security trading system for China JiangQian Tide. This system includes most of the functionality being proposed for the Staryoo.com trading platform, including: transactions and trading of Shanghai A shares, statement of account transactions/balance, Windows NT based, online retrieval of market reviews and exchange information, downloading of historical data, input of stock symbol and lookup, network security/firewall implementation, and built-in analysis systems.
- A diverse and experienced management team. With backgrounds in the technology, banking and securities industries.
- A U.S. company that has a strong relationship with Starmile will have a lower barrier to market penetration in China. However, American companies will struggle to gain market share because of cultural preferences.