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

China Internet Weekly (25Nov19): PDD Plunged by 23% After Short Recommendation in Last Weekly

Behind PDD’s Big Q3 Misses, Profit Mission: Impossible 2020, 2021, 2022...

Pinduoduo (拼多多) Placement - Not a Good Sign

Pinduoduo (拼多多) Lock-Up Expiry - A Bug with Overhang

Pinduoduo (PDD) IPO Risk: Too Many Fakes, Vulnerable to Lawsuits

Regulator Probes Pinduoduo (拼多多) Over Fake Product Allegation

Equity Bottom-Up

<ul>
<li>We believe PDD’s operating cash flows depends heavily on “payable to merchants”.</li>
<li>We also believe the GMV (Gross Merchandise Value) growth will slow down, as many virtual stores have been disappearing on PDD’s platform.</li>
<li>A social media account found that the sales volumes shown on PDD were not true.</li>
</ul>


We believe PDD’s operating cash flows depends heavily on “payable to merchants”.
We also believe the GMV (Gross Merchandise Value) growth will slow down, as many virtual stores have been disappearing on PDD’s platform.
A social media account found that the sales volumes shown on PDD were not true.


Pinduoduo (PDD): Not Only Fake Products, But Also Fake Stores and Fake Numbers

PDD Holdings

Pinduoduo (PDD): Not Only Fake Products, But Also Fake Stores and Fake Numbers