2 responses to “A1 – Analyst Report: Yuanfudao”

  1. hasssae1

    Hi Aaron,
    The structure of your website is great; clear, concise and connected. You provided enough data (e.g. under financials, etc..) without making the data get tedious. I particularly liked how you used both SWOT as well as Porter’s frameworks to back up your analytical recommendations. One thing crossed my mind as I was reviewing your work, and I would like to collect your feedback on it. Under “Threats” you talked about “Government Regulation”. How big of a threat is that to foreign investors in general? Roughly 20 years ago, Venezuela seized several oil projects from ConocoPhillips without compensation, and after 10 years of legal battles finally agreed to pay somewhere shy of $2 Billion over seizure of Conoco’s assets. Do you see that threat ever being applicable to foreign investors in China?


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    1. Aaron Chan

      Hello Hasssae1 – It’s hard to say, but a government may seize a company’s assets for various reasons. Here is an example in China that involved the seizure of assets worth $171 billion. In terms of the private education industry in China, I think one of the government’s aims is to improve the health (mental/physical) of its citizens. Parents and students are under intense competition and pressure from a young age, and the Chinese government is doing something to regulate this.

      https://asia.nikkei.com/Spotlight/Caixin/China-authorities-seize-fallen-tycoon-s-multibillion-dollar-firm


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