Yum China Holdings debuted in New York on Tuesday, marking the first day of trading after the company's spinoff. The stock traded under the ticker symbol YUMC and gained nearly 10 percent during the trading session.

The China division of the brand was hived off due to the pressure from activist shareholders. Yum China owns the Pizza Hut and KFC brands in China.

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Micky Pant, the CEO of Yum China Holdings, told Reuters that the company is likely to face a tough situation in China. He said that the market has many strong local rivals. Further, volatility in the market is also expected to take a toll on the company. The firm has opened over 1,500 stores in China since 2012. However, its revenue has remained flat through the period. The company is looking to reverse the trend in 2017.

Yum China plans to open 600 restaurants a year in China. The long-term strategy is to have more than 20,000 restaurants in the coming 20 to 30 years. It is also looking to expand its market by opening a Mongolian hot pot chain globally. Pant said that Yum China has the flexibility to make investments as it pleases.

Yum brand has been struggling with a declining market share in China over the years. After the spin-off, Yum China is expected to regain market share by offering more localized services.

Yum! Brands CEO Greg Creed said that Yum China is now in a position to gain more customers by becoming a local business. He added that Yum China is no longer a US brand and is a Chinese brand now.

TagsYum China, KFC, pizza hut