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

Tencent (700 HK): The Worst Part Online Game Recovered in Q4 Before Restarting License Approval

Tencent Bull Case: Buy the Online Community Empire, Not Just a Game Operator

Tencent Bear Case: The Growth Illusion (Part 1)

Tencent (700 HK): Ultimately 3Q18 Not as Bad as Widely Expected, Upgrade to Buy

Tencent: A Brief Statistical Review of Game Approvals

Tencent (700 HK): Dominant Viewpoint Misunderstands Reorganization

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

Equity Bottom-Up

<ul class="">
<li>Tencent’s market share as measured by the number of active users increased during the the period license suspension.</li>
<li>We believe that Tencent’s market share as measured by active users will bring increased market share as measured by revenues.</li>
<li>We also believe that during the hard times small companies always die.</li>
</ul>


Tencent’s market share as measured by the number of active users increased during the the period license suspension.
We believe that Tencent’s market share as measured by active users will bring increased market share as measured by revenues.
We also believe that during the hard times small companies always die.


Tencent (700 HK): In Fact Benefited from License Suspension