Banyan Partners 榜样投资

Here's our weekly Market Dashboard！This week we're bringing you the same data driven insights and analysis in a video format. Let us know what you think! Each week, we provide an in-depth overview of the top industry movers and their valuation quantile, market sentiment, unusual volume changes, and performance by investment styles across China.

In the year 2000, the US was dominant in global trade. However, by 2012, China surpassed the US to take the lead. Fast forward to 2024, total trade has reached $6.2 trillion for China, versus $5.3 trillion for the US.   🧐 What do you think about this shift, and can China maintain it’s edge in the future? Share your thoughts by leaving a comment below! #ChinaInvesting #GlobalTrade #China

🌏 An insightful business trip to Switzerland, where I had the opportunity to engage in meaningful discussions with international investors. Looking forward to the next journey!

Happy Chinese New Year! 祝大家新春快乐，收益蒸蒸日上!

The first Sentinel of the year is here, offering a gateway to curated insights and in-depth research for professional investors. Last month, I immersed myself in the disciplined world of Banyan Partners 榜样投资, one of the top managers in Chinese equities. My analysis of their flagship fund, Banyan China Select—a long-short strategy with an 9+ year track record—uncovers how they consistently generate alpha in a complex market. An exclusive interview with Xin Wu and a 25-page analysis of the fund have been published, featuring: • How Banyan integrates private equity-style diligence with quantitative tools to deliver exceptional returns since 2015. • Key insights from Xin Wu, whose methodical approach blends precision, data, and a deep understanding of Chinese markets. • A detailed perspective on the fund’s strategy, performance, and what sets it apart. 👉 Link to the reports: https://lnkd.in/g9UXva37 This is just one of the reports I released recently. Other highlights include: • A postcard from Shanghai reflecting on evolving consumer behavior and the dynamics of China’s super app ecosystem. • A postcard from Seoul exploring Korea’s thriving beauty industry, the subtle contrasts of the city, and its undercurrent of innovation. • Past reports on niche opportunities, including hospital chains and specific sectors with long-term growth potential. If you’d like to explore the depth of my research, feel free to reach out to request a sample report. 👉 Link to the Newsletter: https://lnkd.in/gSj83D38 You can subscribe on our website : https://lnkd.in/eixH6zvQ As the year begins, I’ll be in Paris until January 9, followed by Switzerland, Türkiye, Brussels, and Greece. Each stop is carefully selected to uncover new opportunities, attend conferences, and engage with exceptional investors and companies. If you’re in these locations or need personalized insights from the ground, let’s connect. Opportunities arise when ideas are exchanged, and I’m always ready to share. #InvestmentResearch #BanyanPartners #ChinaEquities #Influidence #Sentinel #Scuttlebutt #MaderGroup

🖋️ A Tale of Two Markets 📃 The US and Chinese stock markets are among the largest and most active, with a comparable number of listed companies: 5,597 in the US and 5,121 in China as of late 2024. Two charts here compare these markets, showing total stocks and those with market capitalizations under USD 100 million. Guess: which chart is for Chinese A-shares and which for the US market? 😎 If you assumed Chart II reflects Chinese A-shares and their "cheap valuations," think again. Despite the CSI 300 Index falling 18.6% over three years versus the S&P 500’s 28.8% gain, Chart I represents Chinese A-shares, while Chart II shows the US market. 📃 By December 31, 2024, China had only six stocks with market capitalizations below USD 100 million, compared to 1,471 in the US. At first glance, one might think China hosts many "small and beautiful" companies with higher valuations than their US counterparts. However, these micro-cap firms are more often "small and ugly." 🧐 Why so few micro-caps in China? Many poorly performing micro-caps hype their stocks with trendy stories, such as AI. Additionally, over 70% of China’s trading volume comes from individual investors, who are speculative and impulsive, chasing quick gains rather than carefully evaluating valuations. This creates a casino-like market with high volatility and frenzied trading. 📃 Stringent IPO rules in China, leading to distortions and demand for micro-caps as backdoor listing vehicles, may also contribute. Raising the threshold to USD 300 million reveals a similar pattern: the US has 2,233 micro-cap stocks versus 589 in China. 📈 Changes in stock numbers over time also tell a story. The US market exemplifies "survival of the fittest," with weaker stocks eliminated, reducing the total. In contrast, China’s market grows due to numerous IPOs and few delistings. 🧐 The stark contrast between the two markets—both in stock totals and micro-cap prevalence—reveals their unique dynamics. The US market’s higher micro-cap prevalence suggests diversity and maturity, while China’s scarcity points to cultural and regulatory factors. 😀 These disparities present not only challenges but also significant opportunities. For us, as value investors in China, we see ample opportunities on both the long side and the short side. #China #stockmarket

📊 Our weekly Market Dashboard No. 19 🔎 Each week, we provide an in-depth overview of the top industry movers and their valuation quantile, market sentiment, unusual volume changes, and performance by valuation groups across China. 🗯 Let us know in the comments what additional data-driven insights you would like to see in future!

Wishing you and your family a Merry Christmas! 🎅

📊 Our weekly Market Dashboard No. 18 🔎 Each week, we provide an in-depth overview of the top industry movers and their valuation quantile, market sentiment, unusual volume changes, and performance by valuation groups across China. 🗯 Let us know in the comments what additional data-driven insights you would like to see in future!

📊 Our weekly Market Dashboard No. 17 🔎 Each week, we provide an in-depth overview of the top industry movers and their valuation quantile, market sentiment, unusual volume changes, and performance by valuation groups across China. 🗯 Let us know in the comments what additional data-driven insights you would like to see in future!