Linda Chien, head of IR at 51job, describes 24 hours in her hectic schedule
07.00 am: Wake up in Shanghai
Today, I’m so happy to wake up in my own bed after a week-long US roadshow. I need to get ready and grab a taxi ‒ fast ‒ to avoid Shanghai morning traffic.
Get to the office and see how the markets performed overnight: sipping a cup of hot tea, I scan the headlines on the various financial websites, go through news clippings for my stock watch list and skim sell-side research reports.
Because we are listed on NASDAQ, investors trade our shares on both US and Greater China news flow. Globalization means constant monitoring of information in all markets.
Check IR inbox and hotline and respond to various investor meeting and conference call requests. We are welcoming more existing and prospective investors to our headquarters every year.
It’s imperative that investors educate themselves first-hand about China and perform more on-the-ground due diligence. Plus, the food in Shanghai is fabulous (albeit increasingly pricey)!
Prepare for call with new Hong Kong analyst later in the day: jot down some key discussion points regarding company strategy, industry trends, competition and the Chinese regulatory environment.
I can’t forget to give a history lesson, too – people often forget that China’s growth story is only a few decades old and most service industries, like our HR services market, are in an early stage of development.
I know the analyst will want some statistics to size the industry but third-party data in China are limited and often unreliable. I want to communicate the broader investment story, both opportunities and risks.
I also anticipate that the analyst will ask for projections on long-term growth and potential. Hmm…should I read his palm, tea leaves or tarot cards? Better yet, maybe I should use my crystal ball?
Joking aside, China is growing, evolving and changing so fast that five-year budgets can become irrelevant within months. I think it’s more realistic to focus on a company’s direction and track record for execution.
No matter how enormous the market is or may be, if a company hasn’t demonstrated the ability to execute on its initiatives, it won’t matter.
4.00 pm: When Europe wakes up
Chat with management about upcoming investor events and calendar: after our next quarterly earnings announcement, we’ll hit the road again. I eat a few chocolates, hoping the sugar rush will suppress my jet lag.
Our CFO and I decide to attend two conferences in London and schedule additional investor meetings in Edinburgh, Frankfurt and Paris. I’ll be accruing a lot of frequent-flier miles this year participating in 12 investor conferences and three roadshows.
While most of our institutional shareholders are US-based, I’ve noticed greater interest from Europe in recent years.
I remind myself that European funds tend to be longer-term holders (one portfolio manager told me his holding period was at least five years) and usually require more company interaction before investing.
To be the most effective, it’s critical to always hone your IR message to match the target audience.
8.30 pm: When the US and Canada wake up
Conference call with prospective US investor: dinner gives me a second wind and I relax at home a bit before I dial in for a conference call with a portfolio manager from a New York hedge fund.
He visited our Shanghai offices two months ago and, although he’s spoken to one of our sell-side analysts, he had a few follow-up questions.
We’ve experienced a lot of sell-side turnover and with those who remain covering so many companies, I find a direct-to-buy-side approach is essential to stay on investors’ radar screens.
During the call, the portfolio manager touches upon one of my biggest pet peeves when he asks, ‘Isn’t 51job the Chinese equivalent of Monster?’
While I understand the natural instinct to associate a Chinese company with a familiar US counterpart, I find many investor misconceptions and misunderstandings arise from these comparisons.
Trends in the US may not be trends in China, and there have been several examples of successful US business models that have failed when plopped into China.
We have innovated, shaped and customized our services to meet the cultural undercurrents and behavioral nuances of the mainland Chinese market. Investors should evaluate a Chinese company on its own merits: we just want to be the 51job of China.
Later: A final glance at trading activity
I track the activity of our shares on NASDAQ for the first two hours of market open. When daylight saving ends in November, the time difference between Shanghai and New York will be 13 hours, leaving only one hour to observe trading. I can’t keep my eyes open much longer so I’m off to bed. I fall asleep wondering what surprises (hopefully none) await me tomorrow morning...
Linda Chien is head of investor relations and assistant vice president of corporate development for 51job
