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

Thematic (Sector/Industry)

China Real estate / Thematic (Sector/Industry)

Dalian Wanda Commercial Properties (1567411D HK)

<ul><li>China Statistics Bureaus calculate resold home prices lower than the real market prices.</li><li>Apartment buyers and sellers provide discounted prices to governmental bureaus for tax avoidance and make up to the real prices via supplemental agreements.</li><li>Local governments do not want to reveal the real high prices, or the central government will believe local officials do not have the ability of market intervention.</li></ul>

China Statistics Bureaus calculate resold home prices lower than the real market prices.Apartment buyers and sellers provide discounted prices to governmental bureaus for tax avoidance and make up to the real prices via supplemental agreements.Local governments do not want to reveal the real high prices, or the central government will believe local officials do not have the ability of market intervention.

China Statistics Bureaus Miss Supplemental Agreements in Calculating Resold Home Price