Overseas Chinese Equities, Aequitas Research

Ming Lu

A veteran with 19-year experience in equity research.

Geographical coverage:
* Companies operating in China, but listed in Hong Kong and the U.S.
* Previously China A-share (listed in mainland China).

Equity sector coverage:
* Chinese App / Internet-based consumption in China, e.g., Alibaba, Tencent, etc.
* Previously covered education, transportation, telecom, power, bank, advertisement, hotel, etc.

Research methods:
* Generally bottom-up.
* Talk to related people on the ground.  Talk to readers and independent writers for analyzing a news portal.  Talk to parents and teachers for analyzing a tutoring school. 
* Visit stores and show photos as evidence in notes.
* Do technical analysis when finding a short-seller attacking an equity.

Languages:
* English
* Mandarin Chinese (Official language of China)
* Shanghainese (Language of Shanghai, the most developed city in China)
* Cantonese (Language of Hong Kong and Canton Province, one of the most developed provinces in China)

Overseas Chinese Equities

ECM Weekly (20 September 2020) - Ant Group, Ming Yuan Cloud, Neusoft Edu, Computer Age Mgt

Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits

Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk

Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/Questions to Ask - Falling Fees, Margins, Cash Flow

Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles

AliPay’s Advantage over WeChat Pay in Physical Stores

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>We believe Ant Group and Tencent have different advantages in direct financial products.</li>
<li>AliPay has a digital credit card, but Tencent does not.</li>
<li>Tencent provides higher return for cash accounts than AliPay.</li>
<li>On cash loan, AliPay’s interest rate is lower, but Tencent’s maturity is longer.</li>
</ul>


We believe Ant Group and Tencent have different advantages in direct financial products.
AliPay has a digital credit card, but Tencent does not.
Tencent provides higher return for cash accounts than AliPay.
On cash loan, AliPay’s interest rate is lower, but Tencent’s maturity is longer.


Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services