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

Inflation Ticking Up Globally - Some Major EMs Are Oversold

Trump’s Trade War Approach Plays to China’s Strengths

TAL - Fully Impacted by Policy Despite Free Riders Launch Class Action – Upgrade to HOLD

TAL Education (TAL US) - Chaos in Junior High School Application in Shanghai

TAL Education (TAL) – Mgt. Expects QOQ Decline for Q1, First Time in 5 Years

TAL Education: Policy Headwind and Restructuring Risks

Equity Bottom-Up

We are not going to analyze Muddy Waters’ 70-page report item by item.  But after we tell you the whole picture, we believe you will agree that it is unnecessary to read Muddy Waters' report. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/055/205/original/Pic%201.PNG?1529000616" class="editor-image img-responsive" data-smartkarma-image-id="55205"></figure>TAL’s stock price tumbled 10% yesterday, after a short seller Muddy Waters alleged that TAL inflated its earnings. (Exhibit 1) Muddy Waters said that TAL created profits as early as fiscal year 2016, which is from March 2015 to February 2016.We believe that Muddy Waters could have been a hero, if it had…

We are not going to analyze Muddy Waters’ 70-page report item by item.  But after we tell you the whole picture, we believe you will agree that it is unnecessary to read Muddy Waters' report. TAL’s stock price tumbled 10% yesterday, after a short seller Muddy Waters alleged that TAL inflated its earnings. (Exhibit 1) Muddy Waters said that TAL created profits as early as fiscal year 2016, which is from March 2015 to February 2016.We believe that Muddy Waters could have been a hero, if it had…

TAL Education (TAL) – Short Seller Muddy Waters, Not a Hero, But a Free Rider