Research from China for the professional investor

 

Our focus is the H share investor

Most of the research written on China and Chinese companies comes out of Hong Kong, London or New York. We believe Chinese research needs to be written by analysts in China. Would you like to read a forecast of the U.S. economy by a Chinese analyst? Investors, for some reason, trust the research from Western analysts and we think this is a mistake. We believe investors can make better investment decisions from research in China – it just makes sense. This is the only way for investors to get an edge on the market.

 

we give investors the chinese view

Chinese research available to the foreign investor is based on what is published in the foreign press. News in China is often misleading and often misinterpreted by Westerners. We try to give the investor a different view from the Chinese perspective. Chinese very often interpret information differently than Westerners.

Our company head and founder is J. Scott Laprise. He spent more than eight years working at CLSA as a senior research analyst. He has lived more than 20 years in China, speaking Mandarin, coming out of management in the healthcare sector.

 

Research for the professional investor

We provide our fundamental differentiated research reports only to professional investors. Our goal is to provide full service from reports, phone calls, client requests, on the ground visits and arrange meetings. We only work for a limited number of clients, as we like to keep our research by focusing on our key clients.

 

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We can provide complete coverage of the Chinese market. Let us know if you are interested in a certain China sector and we will be happy to cover it.

Currently, our main focus is on fundamental research in the following areas:

  • China Macro
  • Chinese Steel Sector
  • Chinese Autos and Parts
  • Chinese Healthcare Sector
  • Chinese Education
  • Baidu, Alibaba and Tencent

 

Monthly reports – Gauge of the economy

To give our clients the edge, we go on the ground each month to find all we can on the state of the economy and most importantly, any changes for better or worse. We do a monthly steel trader and auto dealer visits (now more than 10 years of visits) to not only follow the sectors closely but to get a good sense of how the economy is doing.

 

Steel – a good way to assess government spending and real estate

The steel traders can tell you a lot about the state of the Chinese economy, especially from the government side on spending.

 

Autos tell you about Consumers

The auto dealers give a good sense of the Chinese consumer giving us a view on what we can expect consumers to be doing in the short term. We try to figure out if we should expect more or less consumer confidence and why. Small business visits that we track over time give us a quick view of any changes being seen in the market. This way we get different views of different consumer segments.

 

OUR SIX DIFFERENTIATORS

Six tenets that make Research from Beijing different:

1 We do not take our views from the news.

4 Research in depth material drivers.

5 on the ground visits.

6  Add in the Chinese view.

 

Every research report we write, we try to include some kind of visit, interview or local flavour to our report. We also give the reader the inside China view, how do the Chinese look at an issue. The western media can only analyse an issue in China using western thinking and values. You can almost never read why China is doing what it is doing, there is little click value. Applying the wrong measuring system will often lead to incorrect investment decisions. China has a very different system of doing things which is important to recognize. We give the reader the Chinese view which is very different from the western media. To make a good investment decision we think you must understand both sides of the argument.

The Chinese view is made up from one of the longest existing cultures in the world, a controlled media, and limited exposure to outside countries. It is an immature country rising up only these past few decades trying to find its way. By following this method, we aim to provide truly fresh views that clients can act upon.

We find that most Chinese research by analysts is the same. Analysts, especially those raised in China, tend to be scared to take their own view and everybody is reading everyone else’s research. This is where we have the opportunity to provide our clients with a differentiated product.

  

analysts all live in china

We are constantly meeting and talking with companies, investors, sector specialists and just ordinary people every day. This enables us to get the feeling of what is really happening on the ground early on and not just what the media is reporting. The Chinese government uses the media to try to get out a specific message, which is not always in line with what is actually happening. The ability to differentiate and understand government policy is very difficult for anyone living outside of China. We break it down for you and let you know what we think is important or not.

The Chinese markets are one of the most government-influenced markets in the world but the key is to be able to pick out what is really important from what is just noise. Policies are issued almost every day and knowing which policies matter is the key to making good investment decisions.

 

differentiated research

Most research today on China has become a commoditized product. Often analysts and brokerages talk about the same thing to generate trades. The sell-side brokers are under tremendous pressure to write complementary reports about Chinese companies. Brokerages are cutting costs and hiring young inexperienced analysts as experienced analysts head out on their own doing independent research. The old model is broken and we are trying to fix it for our clients.

 

no conflicts of interest

We do not have any of these limitations and our research is different.

We believe the only way to really understand the markets in China is to be living and working here every day.

There are many analysts covering China by just reading the news or the occasional trip to China. It always surprises me when I read a report of an analyst just coming out of China after a short visit. They are highly sought after for their views despite a lack of understanding. Without living in China, it is hard to provide the right context. A single snapshot view without a background and daily understanding on the ground is often wrong and misleading to investors.

We are here on the ground every day explaining to our clients what is going on in China trying to let you know what will be important to the markets. China is a very complex and complicated place where just an occasional snapshot is not enough. Brokers try to sell research based on a single trip to China while we try to tell you what is going on here every day. This kind of research in the past was acceptable to clients but we do not think so anymore. It is no longer necessary to follow analysts outside of China. It is like having an analyst for Amazon based in China, it does not make sense. Or the economic view of the U.S. put together by Chinese analysts.

 

let us know when you visit beijing

We meet with investors and analysts making trips to China to help them develop their views.

Services

 client visits

We would like to help our clients put together meetings or follow us along on some of our trips. If you are coming to China, please let us know as we would like to meet you.

 

bespoke research

We are happy to put together any kind of bespoke research to meet your needs.

research reports

We put out around 10 research reports per month covering specific companies and sectors while time to time looking at the macro view.

We think we can help investors most of all by looking at companies in detail. On the Chinese macro view, we tend to focus on writing reports when we think the market consensus is wrong.

important news

We highlight the news that we think is important for investors.

ABOUT OUR COMPANY

 

We are a small boutique research firm made up of research analysts living and working in China. Our goal is to provide the best quality research here on the ground in China to give investors the earliest view possible.