Shorting Bubbles with Low Moats

Junheng Li, Founder, and CEO of JL Warren Capital, runs a research firm that provides on-the-ground high-frequency data for sectors in the Chinese economy. Junheng’s firm fills the gap in data & research on huge multinational companies that are mainly covered by Western analysts who neglect how Chinese markets operate. In this episode, Junheng addresses the massive boom in Chinese company IPOs in the U.S. and how these companies are often too immature for public markets.  Junheng believes these companies often use the U.S. capital markets for early liquidation from insiders and are ripe short-selling candidates. She reveals the secret for shorting highly valued companies with low economic moats that lead to a deterioration in fundamentals.