china-deal-sourcing

china-deal-sourcing

Purpose

Identify and evaluate A-share and China market investment opportunities — both listed and pre-IPO opportunities for China-focused investment strategies.

Data Sources

Primary: iFind MCP (Tier-1 paid) / AkShare MCP (Tier-2 free alternative)

get_market_overview()                     → Market movers
get_industry_stocks(industry="...")        → Industry peer lists
get_quote(ticker)                         → Valuation snapshot
get_financials(ticker, "income")          → Financial health check

Secondary Sources

Source	Use
CNINFO	Company filings, financials
Shanghai Stock Exchange/Shenzhen Stock Exchange	Announcements, listing data
Qichacha / Tianyancha	Corporate structure, shareholders
Zero2IPO / CVSource	Private equity deal flow
Securities firm direct investment / investment banking	Deal pipeline
Industry exhibitions/forums	Networking, deal sourcing

Workflow

Step 1: Define Investment Criteria

Strategy parameters:

Parameter	Options	Notes
Stage	Pre-IPO / Growth / Buyout / Distressed	Stage
Sector	New energy, semiconductors, pharmaceuticals, consumer, etc.	Industry preference
Size	Market cap range / revenue range	Investment size
Geography	East China, South China, North China, etc.	Regional preference
Ownership	State-owned / private / mixed	Ownership preference
Growth	Revenue growth threshold	Growth requirements

Step 2: Screen the Universe

Screening approaches:

Approach 1: Market-based screen (A-share)

# Use AkShare to pull market data
get_market_overview()  # Top gainers/losers/volume
get_industry_stocks(industry="半导体")  # Sector peers

Screen filters:

• Market cap range
• Revenue growth threshold
• Margin profile
• Valuation multiples
• Trading liquidity
• Ownership structure

Approach 2: Industry research

• Identify growing sectors (industry prosperity)
• Map value chain
• Find category leaders
• Identify consolidation opportunities

Approach 3: Network sourcing

• Industry resources (Industry network)
• Securities firm/investment banking deal flow
• Local government investment promotion (local government promotion)
• Industry association connections
• Founder network

Step 3: Evaluate Targets

Initial screening criteria:

Criterion	Threshold	Assessment
Market size	>XX billion TAM	Growing market
Company position	Top 5-10 in segment	Leadership potential
Revenue scale	>X billion	Minimum viable
Growth rate	>XX%	Growth trajectory
Margin profile	Gross >XX%, Net >XX%	Profitability
Cash generation	Positive FCF	Sustainability
Management	Experienced, aligned	Execution capability
Competitive position	Moat / differentiation	Sustainability

Step 4: Assess Investment Thesis

Thesis framework:

1. Why this company?

   • Unique positioning
   • Competitive advantage
   • Growth runway

2. Why now?

   • Timing catalyst
   • Market inflection
   • Valuation entry point

3. How to win?

   • Value creation levers
   • Operational improvements
   • Financial engineering
   • Strategic additions

4. What could go wrong?

   • Key risks
   • Downside scenarios

Step 5: Build Target Profile

Profile template:

【项目初筛】[Company]（[Ticker]）

一、基本信息
   行业：[Industry]
   板块：[Main / ChiNext / STAR / BJSE]
   市值：[XX亿]
   上市时间：[YYYY]

二、业务概览
   主营业务：[Description]
   收入结构：[Segments]
   核心客户：[Type / concentration]
   竞争优势：[Bullets]

三、财务快照
   Revenue: [X亿] (YoY: [X%])
   Gross Margin: [X%]
   Net Margin: [X%]
   ROE: [X%]
   Net Debt/EBITDA: [Xx]

四、估值快照
   Market Cap: [XX亿]
   PE (TTM): [Xx]
   PB: [Xx]
   vs Sector Median: [Premium/Discount X%]

五、投资逻辑
   [3-5 bullets]

六、初步风险
   [2-3 key risks]

七、下一步
   [Management meeting / DD / Pass]

Step 6: Track & Nurture

Deal tracking:

Target	Status	Owner	Next Action	Deadline
	Prospect → Intro → Active → DD → Closed

Relationship management:

• Founders / management contact cadence
• Industry event attendance
• Securities firm/FA relationship maintenance
• Local government / investment promotion relationships

China-Specific Sourcing Considerations

Market Structure

Segment	Description	Sourcing Approach
A-share listing	Already public	Secondary buyouts, privatization
Pre-IPO	Late-stage private	Securities firm direct investment, industry funds
Beijing Stock Exchange	SME innovation	Sector-specific funds
H-share/A-share dual	HK + A-share	Premium capture
M&A exit	M&A exit	Corporate buyers

Common Sourcing Channels

Channel	Description	Quality
Securities firm investment banking department	Investment banking deal flow	High quality, warm
FA (financial advisor)	Independent advisors	Medium-high quality
Industry network	Industry connections	High quality, relationship-based
Local government	Investment promotion and attraction	Mixed quality, relationship-dependent
Exhibitions/forums	Industry events	Medium quality, volume
Listed company M&A	Public M&A	High quality, structured

Industry Hotspots (2024-2025)

Sector	Dynamics	Sourcing Angle
Semiconductors	Domestic substitution, capacity expansion	Equipment, materials, design
New energy	Overcapacity, consolidation	distressed/bankruptcy opportunities
Pharmaceuticals	Innovative drugs, CXO	R&D-driven, global expansion
High-end manufacturing	Localization, going global	Industrial automation, components
Consumer	Differentiation, branding	Premium brands, distribution
AI applications	Accelerating implementation	Enterprise AI, industry solutions

Quality Checks

Before advancing target:

• Investment criteria alignment verified
• Market opportunity quantified
• Competitive position assessed
• Financial health checked
• Management quality evaluated
• Investment thesis articulated
• Risk factors identified
• Next steps defined

Data Source Mode Switch: Set env var IFIND_DATA_SOURCE_MODE to control data source preference.

• ifind-only (strict): Use iFind only, error if unavailable
• ifind-fallback (default): iFind preferred, fallback to AkShare
• akshare-only, wind-only (Wind only), wind-fallback (Wind first, fallback to iFind → AkShare): Skip iFind, use AkShare only