Hongyu Cai of China International Capital Corp. extends her streak at the head of this class to two years, in part because “she handles a volatile market wisely and maturely,” according to one money manager. Dividing her time between Hong Kong and Shanghai, Cai follows 40 companies with “diligence and deep knowledge,” another supporter chimes. In October 2012 the analyst advised clients to reduce their holdings in coal miners Yanzhou Coal Mining Co., which is headquartered in Zoucheng, and Panzhihua-based Hidili Industry International Development. Oversupply was pressuring margins and demand was slowing, she noted, while environmental, labor and safety costs were rising. By the end of October 2013, the shares had plunged 30.4 percent, to HK$8.04, and 33.8 percent, to HK$1.29, respectively. Both stocks significantly underperformed the sector, which declined 18.5 percent. Cai remains cautious for the medium term, anticipating “trading opportunities rotating among the different subsectors,” she says, but “no sustaining trends.” The researcher’s “strength lies in her access to corporate managements, extensive industry network, focus on investor returns and thought leadership on the mid- to long-term trends,” proclaims another backer. Cai joined CICC in 2009 from Goldman, Sachs & Co. in New York, where she covered Americas natural resources equities. She earned a master’s degree in finance, investment and real estate from the Sloan School of Management at the Massachusetts Institute of Technology. — Ben Mattlin |
The 2013 All-China Research Team: Metals & Mining, First: Hongyu Cai
