Understand how we provide quality-in-class research on Chinese small and mid-cap stocks to help retail investors make accurate investment decisions and profit from phenomenal returns.
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Why Choose Us for analyses on the Chinese stock market
The team has high-level experience working for blue-chip institutions like J.P. Morgan and Citibank and has industry knowledge from consulting firms like Accenture, Deloitte, or Roland Berger.
We help our readers select suitable investments that will deliver long-term oriented phenomenal returns, through specialising in Chinese stocks in the small-mid cap sector with high growth potential.
Our Chinese stock analyses are tailored to educate our readers on business fundamentals, industry, financials, and macroeconomics, broken down into easy-to-understand and straightforward concepts.
We disclose our all sources as we are committed to full transparency. Our data is gathered from Capital IQ, DataYes, and trusted news sources. In total, we have over 20 sources to cross-verify.
We invest our time in peer-reviewing all articles from a bottom-up and top-down approach. We leverage our expertise and partnerships to provide in-depth and insightful reports.
Our memberships are specifically tailored to retail investors where we offer high-quality research on Chinese stocks, community discussion, and the chance to chat 1:1 with our Senior Equity Analysts.
Our Approach Analyzing Chinese stocks
Our team members, located across different continents, share the view that there is a critical need for research in Chinese & Hong Kong Equity markets. With the rise of robotic and index trading there is a general lack of fundamental research being done to allow private individuals to gain knowledge on these markets. While equity coverage is quite extensive for America and Europe, we believe this is less the case for Asian markets as a whole and especially the Chinese stock market.Â
We focus on Chinese equity as these are easily accessible to global traders, often through ADR’s, with indexes constituted by large caps which provides the associates benefits of having quarterly and annual reports available, as well as sufficient liquidity for trading.Â
Our research is conducted by young professionals from Europe with backgrounds in finance and/or international business management. This allows our reports to remain objective and focused on financials, rather than driven by trends. Our research is subject to intensive review from our quality team, who are living and affiliated with commerce in China.
Frequently asked questions about investments in the Chinese stock market
Why should I invest in the Chinese stock market?
Despite regulatory risks, Chinese stocks can offer attractive return potential and diversification opportunities. Chinese a-shares in particular have a low correlation of 0.32 with other global assets. Despite short-term negative developments, Chinese equities offer good long-term return potential. An investment in the MSCI China in Jan. 2000 would have created a return of 400% in Aug. 2021. Which clearly outperforms other indices such as the S&P 500 over the same period.
Should I be worried about regulation risk in China?Â
The recent regulatory policies mainly affecting companies in the internet, property and education sector by the Chinese government in 2021 have sent the Chinese stock market into a bear market. The 14th Five-Year Plan adopted last year holds out the prospect of further intervention by the Chinese government, both supportive and curtailing. This way short-term spurts of volatility can also represent interesting entry points for investors. Nevertheless, it is clear that there is a high degree of uncertainty and risk associated with investing in the Chinese stock market, and this should be given greater consideration in the context of appropriate risk management. Our stock analysis research publications are intended to be part of a comprehensive due diligence for investors of the Chinese stock market.
What is the difference between onshore and offshore China securities?Â
Onshore Securities are traded on the mainland Shanghai or Shenzhen Stock Exchange and are often referred to as A- or B-shares. Offshore securities are mostly traded on the New York or Hong Kong Stock Exchange and are often referred to as H- or N-shares. Due to difficult access, onshore shares were much less popular with foreign investors for a long time. Most of the Chinese internet leaders such as Tencent, Netease, Baidu or Alibaba are listed offshore. Chinese offshore stocks have outperformed onshore stocks in the past. When investors buy offshore Chinese stocks, they do not come directly from Chinese operating companies but from offshore shell companies, which means that the typical shareholder rights do not exist.