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

Trade War/Huawei/Stocks/Tiananmen/Electric Vehicles

Macau Update: Individual Whale Boosting June VIP; WC 2018 Low Base, Mass Benefiting from HK Protests

Investment Advisors, JL Warren Capital

Junheng Li

Thematic (Sector/Industry)

China Consumer discretionary / Thematic (Sector/Industry)

<p>Since May 10 when Chinese Vice Premier Liu He left the Washington without a trade deal with the US, nor any plan for future talks, both countries have been heating up the rhetoric’s against each other at home, diminishing the public’s perception of a deal in near future.   We believe that the trade talks broke down due to highly principal issues.  China were indeed to comply with the signed “contract” on paper, its state interest in strategic industries and state-owned-enterprises would be severely compromised – something that Chins is not ready nor willing to do for now.  What’s more, the complex friction within the Party, and opposition from the conservatives, played a key role in Xi’s hardening position against the US.  While projecting a hardline to the domestic audience, China on the other hand, has NOT engaged any significant counter measures since Trump’s somewhat unexpected tariff hike of 25% on one third of all Chinese products effectively on May 10<sup>th</sup>.</p>

Since May 10 when Chinese Vice Premier Liu He left the Washington without a trade deal with the US, nor any plan for future talks, both countries have been heating up the rhetoric’s against each other at home, diminishing the public’s perception of a deal in near future.   We believe that the trade talks broke down due to highly principal issues.  China were indeed to comply with the signed “contract” on paper, its state interest in strategic industries and state-owned-enterprises would be severely compromised – something that Chins is not ready nor willing to do for now.  What’s more, the complex friction within the Party, and opposition from the conservatives, played a key role in Xi’s hardening position against the US.  While projecting a hardline to the domestic audience, China on the other hand, has NOT engaged any significant counter measures since Trump’s somewhat unexpected tariff hike of 25% on one third of all Chinese products effectively on May 10th.

Rising Nationalism Propaganda by State Media, China Macro Data 4M 2019