JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Investment Advisors

Q2 Top Long and Short Ideas: GOOS, BZUN, Macau Gaming, JD, and MOMO

Junket Liquidity Drives Macau Gaming Momentum; Stocks Upside Hinges upon Mass Growth

Social Ecommerce Pindoudou: Disruptive Digital Phenomenon in China’s E-Commerce

China's Live Streaming: A Fab Vulnerable to Cyberspace Content Scrutiny

Investment Advisors, JL Warren Capital

Junheng Li

Thematic (Sector/Industry)

China Consumer durables and apparel / Thematic (Sector/Industry)

Liquidity Easing and Fiscal Projects Re-ignitedIn a statement posted on its website late on August 11, China Banking and Insurance Regulatory Commission called on the institutions to raise the proportion of medium- and long-term loans to avoid placing strain on borrowers at the end of the month or quarter.   As always, the statement was vague and lacks implementation details, but the timing and the issuance of such a statement signal a continuing shift of policy towards a more supportive stance, away from a hardline deleveraging narrative.  The notice specifies the receiver of liquidity support should be “business that encounter relatively large impacts from international markets and face temporarily difficulties but have potential for future development, strategic importance and premium quality.”Starting this month, local governments have received green light for raising new debt for infrastructure investment.  1 trillion RMB ($150bn) local government bonds will be issued before end of October, according to a directive from the Ministry of Finance.  In total government bond issuance will reach 1.4 trillion yuan by end of 2018, more than double that of last year. We should observe this increase in the total social finance data.

Liquidity Easing and Fiscal Projects Re-ignitedIn a statement posted on its website late on August 11, China Banking and Insurance Regulatory Commission called on the institutions to raise the proportion of medium- and long-term loans to avoid placing strain on borrowers at the end of the month or quarter.   As always, the statement was vague and lacks implementation details, but the timing and the issuance of such a statement signal a continuing shift of policy towards a more supportive stance, away from a hardline deleveraging narrative.  The notice specifies the receiver of liquidity support should be “business that encounter relatively large impacts from international markets and face temporarily difficulties but have potential for future development, strategic importance and premium quality.”Starting this month, local governments have received green light for raising new debt for infrastructure investment.  1 trillion RMB ($150bn) local government bonds will be issued before end of October, according to a directive from the Ministry of Finance.  In total government bond issuance will reach 1.4 trillion yuan by end of 2018, more than double that of last year. We should observe this increase in the total social finance data.

Macau Rolling Re-Accelerated; Fiscal Projects Resumed; Outbound Tourism Up 9.3% YoY