Problem: Too much noise, not enough
experienced judgment. Roiling global currency, commodity and stock
markets with its actions, China has re-established itself as a key
factor for investors to consider. However as investors found, that
is easier said than done. With very little informed information let
alone analysis coming out of China it is still treated as an opaque
Middle Kingdom that will remain an arcane mystery to the outside
world.
Solution: Research-Works' China Service cuts
through this miasma to find the reality and the stock picks. With
10 people in China and another five outside, it builds a broad
knowledge platform from which to make informed decisions on
industries, commodities, companies and market-moving events. We
cover over 20 sectors.
Reports: We take a fundamental approach to
China so as to build an understanding of reality. This has led us
to look for the big ideas that are the building blocks of any
economy or market. These have included:
-
•Urbanisation. What is the
true scale by 2020 ? What is the investment impact of another 340mn
people moving into the cities by 2020 ? Which sectors and stocks
benefit and when ?
-
Leveraging the Chinese
Consumer. What is consumer finance doing to stimulate housing,
autos and white goods as China starts to Live Now, Pay Later ?
What
are Chinese household incomes ?
-
Margins. Are profits
collapsing, triggering the next crisis? Or is Corporate China in
its best shape ever ?
•
We cover
over 50 China stocks.
Sector Analysis:
In-depth analysis of the sectors is an integral part of the China
Service. This is designed both for Asian specialists
and for global investors who need to know how China impacts their investments
worldwide. Sectors include: Steel, Telecoms, Power,
Energy,
Textiles, Expressways, Rail and Commodities.
China Monitor: Each month we review the main data that
we think gives the most reliable guide to China's economy. This
provides
a guide to the economy over the next 3-6 months and to likely
policy-maker moves.
Industry Monitors: These do for an industry what the China
Monitor does for China macro. In 20 minutes a month it keeps
investors
abreast of the latest trends, So far there are Monitors on
Steel , Telecoms, Textiles, Power, Energy ,
Infrastructure and Commodities.
China Emails:
Update investors with key data or events that indicate direction or
explain developments.
Data Base: Access
to rigorously tested five-year data on over 450 A and H shares plus
industry data.
Workshops:
These major investigations of the Chinese economy and the impact of
its structural change are the centre piece
of workshop
conferences.
For an idea of the scope of these conferences see the September
2008 Pearl River Delta Workshop.
Experience:
Hugh Peyman, has headed Asian research for Merrill Lynch and Dresdner
Kleinwort Benson. He is based
in Shanghai, having been involved with China for over 30 years. With 15 people working on Greater China,
there is both depth
and experience. Access to
Hugh and the sector
analysts is welcomed.
Results: This
fundamental approach has paid off, both in and out of China:
China's
CPI To Break 18 Month Rising Trend By July... This Should Reduce Concerns
About Interest Rates and Tight Liquidity
