How do land development projects in China affect the prospects of Japanese trading companies? For this question, conventional research provides few answers.
However, through non-traditional field research, Capital investment analyst Dickon Corrado discovered key insights about the relationship between the two.
Dickon's research began with frequent on-site visits to real estate projects throughout China – in many less-visited areas. Fluent in Mandarin, Dickon conducted discussions with real estate developers, government officials, and local cement companies. On weekends, he even sought out many ordinary citizens to ask about their mortgages.
His field research uncovered compelling evidence of an imminent slowdown in building activity long before it was widely recognised. This slowdown would ultimately trigger a forceful pull-back in demand for steel, negatively impacting Japanese trading companies, whose earnings are leveraged to Chinese hunger for bulk commodities.
Dickon recommended eliminating exposure to these companies before they experienced big declines.
That's why we do research outside the office.
If you are interested in learning more about us and our investment solutions, please contact our distributor, Pinnacle Investment Management, on 1300 010 311.