Executive Summary

Business Overview

• Kanzhun is the company behind BOSS Zhipin, which has become the largest online recruitment platform in China in terms of average Monthly Active Users.
• Differentiators: BOSS Zhipin is (i) mobile native, (ii) AI recommendation driven and (iii) offers a direct chat function with hiring managers
• Within the Chinese internet domain (already highly penetrated in most verticals), BOSS Zhipin emerges as a distinctive vertical frontrunner, poised for sustained and observable growth trajectory. For reference, online recruitment penetration in China is at ~35% vs e-commerce (~82%) vs food delivery (~50%) vs live streaming (71%).

Investment Theses

T1: Industry Outlook – Amidst significant growth headroom, BOSS Zhipin is well positioned to to leverage the shift towards online and mobile platforms in China's recruitment landscape

• Huge online recruitment penetration headroom (35.3% penetration) to tap on, driven by the convenience and adoption of mobile
• Cost per hire for online recruitment is just a fraction of offline recruitment, democratizing such services (esp for SMEs) and making it a more effective recruitment channel
• The blue-collar segment in particular presents a sizable and appealing market, characterized by frequent job changes
• Existing disparity between supply and demand in the labor market will help drive CAC down

‍T2: Economic Moat – Reinforcing network effect coupled with a tested and proven product-market fit indicates a highly defensible core

• Markets may have overlooked BZ's significant R&D efforts, which enabled it to create an excellent product with high product-market fit
• Reinforcing network effect creates a strong economic moat that will expand margins by significantly driving down sales and marketing expenses going forward

T3: Financial Position – Prudent capital structure alongside a profitable and OCF positive business model makes BOSS Zhipin primed for growth  

• Enviable financial position vs competitors, especially after raising IPO capital at an attractive valuation (before all aggressive Fed hikes in 2022 and IPO winter) and having no debt
• Already demonstrated profitability (unlike many other tech companies especially in Southeast Asia) and positive Operating Cash Flow

T4: Capitalization Table – Absence of significant disposal post-IPO lockup period by key shareholders (i.e., founder, early-stage investors) signals strong internal conviction

Valuations

• Relative Valuation: The market seems to have priced in much of the optism we share as indicated by the valuation multiple it is trading at vs peers. Nevertheless, entry price is still reasonable – though definitely not at a discount 
• Intrinsic Valuation: Very conservative assumptions used yielded an intrinsic value of US$17.89 per share via DCF

Risks

• R1: Growth outside of China may be limited due to product-market fit issues ‍
• R2: Regulatory overhang still remains‍
• R3: Potential rise in competitive pressure, especially from short-video platforms like Douyin (China's TikTok)‍
• R4: Weak corporate governance, especially through its board structure

Catalysts ‍

• C1: Efforts from the Chinese government to stimulate the economy via fiscal stimulus‍
• C2: Improved geopolitical tensions and greater certainty over economic and security policies‍
• C3: Fresh growth plans announced, aiming to provide further value-add to its existing user base, which will enhance monetization

1. Company Overview – BOSS Zhipin is China’s largest online recruitment platform

Who is Kanzhun

Kanzhun is the company behind BOSS Zhipin, which has become the largest online recruitment platform in China in terms of average Monthly Active Users (MAU). BOSS Zhipin has an average MAU of 30.9 million users as of 22Q4. 

How does the app work‍

Employers post jobs, receive personalized candidate recommendations, engage in direct communication and receive resume upon mutual consent. Job seekers likewise receive job recommendations, initiate direct chats and deliver resumes upon mutual consent. 

Unique features

1. Mobile Native – Unlike traditional job portals which are mainly used on a web browser on your laptop, BOSS Zhipin was started as a mobile app 
2. AI recommendation driven – Unlike traditional job portals that are search-based driven, BOSS Zhilpin leverages data collected over the years coupled with proprietary technology infrastructure to match jobs and candidates 
3. Direct Chat with Hiring Managers/Bosses – BOSS Zhipin allows job seekers and employers to initiate direct chat with their counterparties. Hiring managers are also involved earlier on in this recruitment process, making it more efficient since a layer of middlemen (HR staff) are removed. 

Striking resemblance to dating apps

In my opinion, the characteristics of BOSS Zhipin make it bear a striking resemblance to dating applications such as Tinder. One, it operates mainly on mobile platforms, allowing users to engage in a less formal process and respond whenever they wish. Two, it enables direct messaging and facilitates instant feedback. Three, it utilizes artificial intelligence-powered matching algorithms.

Monetization Model

• BOSS Zhipin primarily makes money from their enterprise users (i.e., employers) through (i) charging a fee for each job posted and (ii) other value-added tools (e.g., bulk invite sending, advanced filter help, etc.). 
• Notably, BOSS Zhipin has an interesting monetization mechanism, which prices the job posting fee through taking into account of demand and supply of such roles. So, for example, a role with significant demand could potentially be free to post, to attract more job seekers. 
• It does not earn a fee through successful matches – My take is that it is likely difficult to do so anyways, since it is easy for parties to close the deal off the platform without BOSS Zhiping’s knowledge.

What caught our attention?

The recent downturn in Chinese stocks, particularly in the technology sector, prompted my interest in uncovering potential alpha amidst prevailing market pessimism. My analysis revealed that BOSS Zhipin stands out in the Chinese internet sphere as a rare vertical leader with a long and visible growth runway. Online recruitment penetration in China is still at its early stages - only at ~35% vs e-commerce (~82%) vs food delivery (~50%) vs live streaming (71%).

Certainly, it's important to acknowledge other players in this segment such as 51job (traditional resume centric model), Zhaopin (traditional resume centric model), Liepin (which cater to mid-high income white collar roles), Lagou (which specializes in tech-related positions) and 58.com (classified job ad model). Note that 58 also launched Gangi Zhizhao, which is a copycat of BOSS Zhipin. However, it lacks scale and pales in comparison.

BOSS Zhipin stood out by having the most engaged users (~28mins per user per day vs Zhaopin/51job at 18.3/18.8mins vs Liepin at 4.4mins and 58.com at 10.3mins). As we delve deeper into the analysis, it will become increasingly evident why BOSS Zhipin distinguishes itself from the competition.

2. Share Price Movements – Key turning points and events, and how they impacted share prices

By studying past share price movements alongside financial news, I noticed that BOSS Zhipin’s share price has been highly driven by (i) regulatory overhang, (ii) market sentiments on the Chinese economy, (iii) US-China geopolitical tension, which feeds into market sentiments on China, (iv) Earnings performance. Thus, forming an opinion of the above and closely monitoring these factors will be crucial for both the initial investment and portfolio monitoring. 

June-21 [Neutral, Internal]: Kanzhun Limited went public in June 2021, offering 48 million American Depositary Shares (a US bank buys shares from the firm, re-bundles and reissues them on Nasdaq) at US$19 per ADS, raising approximately US$912m. 

Jul-21 [Negative, External]: 

• Almost immediately after its Nasdaq IPO, the company was subject to a cybersecurity review by the Chinese authorities. The platform was required to suspend new user registration in China. 
• Note that this was a period of huge regulatory crackdown from the Chinese government. Didi (China’s Uber) was delisted from all app stores during this same period due to “serious violation“ of cybersecurity laws. Other popular apps like Huochebang and Yunmanman were also probed into for cybersecurity reviews. 

Feb-22 [Negative, External]: On 24 February 2022, Russia launched a military invasion of Ukraine in a steep escalation of the Russo-Ukrainian War. China refuses to condemn Russian President Vladimir Putin for the war and the resulting humanitarian crisis. 

Mar-22 [Positive, External]: The State Council's Financial Stability and Development Committee suggested promoting the growth of a robust platform economy in order to strengthen global competitiveness. 

May-22 [Positive, External]: Vice Premier Liu provided explicit reassurances to tech companies during the Chinese People's Political Consultative Conference (CPPCC) and expressed his support for their listings abroad. Liu affirmed that the government would back tech companies in their efforts to go public, both domestically and internationally.

Aug-22 [Negative, Internal]: BOSS Zhipin announces its 2Q22 financial results, which saw a 12.8% drop average MAU vs the same quarter in the prior year [Source]. 

Oct-22 [Positive, External]: China was expected to start to gradually loosen its zero-COVID policy after the 20th National Congress of the Chinese Communist Party

Nov-22 [Positive, External + Internal]: 

• Initial stages of zero-covid pivot. China issued 20 guidelines for easing its zero-COVID policy including to reduce quarantine requirements and scrap circuit breaker bans for incoming flights.
• BOSS Zhipin’s 3Q22 financial results were also positive, with a 12.5% increase in average MAU vs the same quarter in the prior year [Source]. 

Dec-22 [Positive, External + Internal]: 

• A dual listing on the main board of HKEX was completed under the ticker “2076”. This move certainly helped BOSS Zhipin diversify its investor base and fortify its capital structure amidst US-China geopolitical tensions and uncertainties. 
• Coupled with further covid restrictions relaxation, which hugely boosted investor confidence in China 

Mar-23 [Negative, External]: Continued geopolitical tension, with the alleged Chinese spy balloon saga in Feb-23, alongside weaker than expected economic data post zero-covid pivot has definitely had a big impact on the overall Chinese stock market. 

3. Industry Outlook – Amidst significant growth headroom, BOSS Zhipin is well positioned to to leverage the shift towards online and mobile platforms in China's recruitment landscape

Rapidly growing online recruitment market…

• According to a CIC report, China’s online recruitment market size is expected to reach RMB 251b by 2026 [Source]. 

• While it is not clear if the definitions are different, UBS is less optimistic, estimating the market to be RMB 110b by 2026E [Source]. 
• Nonetheless, UBS is also aligned with the huge growth opportunities – projecting a 25.6% CAGR from 2022 to 2026. 

… Backed by key structural trends

#1 Huge online recruitment penetration headroom to tap on, driven by the convenience and adoption of mobile‍

Due to the prevalence of mobile internet and smart devices, job seekers are now relying more on online recruitment platforms, which have proven to be more efficient and convenient in matching jobs (e.g., you can easily apply for jobs or manage job applications on the subway home without turning on your laptop). Additionally, due to the convenience, such platforms also activate more passive job seekers, which increases the online recruitment market size. Note that China’s online recruitment market is still at an early stage compared to countries like the US. In 2021, online recruitment represents only 35.3% of China’s recruitment services (vs US/UK/Japan at 60-70%). This is up from 26.8% in 2016. However, this figure is expected to rise to 52.6%, outpacing offline channels by 2026. 

#2 Cost per hire for online recruitment is just a fraction of offline recruitment, democratizing such services (esp for SMEs) and making it a more effective recruitment channel‍

Online recruitment cost one-fifth of offline recruitment, according to CIC. With lower cost, this enables employers to use talent acquisition services like BOSS Zhiping, and hence growing the market size. This will benefit especially SMEs (95%+ of enterprises in China), which are not well served by traditional online recruitment platforms since they largely focus on larger sized companies. ‍

#3 The blue-collar segment in particular presents a sizable and appealing market, characterized by frequent job changes

‍Compared to the white-collar sector, blue-collar recruitment is characterized by fragmentation and a strong dependence on offline channels like referrals and agencies. Currently, blue-collar workers account for >60% of the labor force in China but only ~20% of them use online recruitment services. Nevertheless, due to the growing challenge of finding skilled workers, online platforms will become increasingly crucial due to its efficiency and cost-effectiveness. Furthermore, even though cost per hire for a blue-collar workers are lower than white-collar workers, blue-collar workers generally switch jobs more frequently, with around 2-3 job changes each year on average, making it an attractive segment.‍

#4 Existing disparity between supply and demand in the labor market will help drive CAC down

‍The overall urban unemployment rate in China is improving, but joblessness among 16 to 24-year-olds is bucking that trend. In Apr-23, it increased to 20.4% [Source]. While such high unemployment rates can be an indication of weaker hiring demand, it also ironically drives customer acquisition cost down since people are more active in looking for jobs.

BOSS Zhipin is uniquely positioned to tap onto this growth

• BOSS Zhipin, being a mobile native platform (unlike its competitors, which are largely webpage native) is uniquely positioned to tap onto this growing market. 
• After all, founder and CEO, Peng Zhao left his cushy CEO job at rival firm Zhaopin (first and longest-running online job portals in China) to start BOSS Zhipin precisely because he saw an opportunity to enhance efficiency in and capitalize on this market. BOSS Zhipin is built ground-up, through a deep understanding of the online recruitment industry and what it lacks. 

4. Economic Moat – Reinforcing network effect coupled with a tested and proven product-market fit indicates a highly defensible core

Markets may have overlooked BZ's significant R&D efforts, which enabled it to create an excellent product with high product-market fit

• BOSS Zhipin has spent an average of 26.1% of its revenue on R&D efforts from FY19 to FY22. This has translated into a world-class product that has gradually overtook incumbent players (Liepin/51job) despite being a latecomer. This signals to us that BOSS Zhipin indeed have strong product-market fit. 
• Note that under US GAAP, R&D costs are largely expensed rather than capitalized. Hence, there is significant intangible assets that BOSS Zhipin has built over years, that is off balance sheet and likely underappreciated by the markets. 

Reinforcing network effect creates a strong economic moat that will expand margins by significantly driving down sales and marketing expenses going forward

• Many tech platforms (like Grab) tend to also have such a flywheel model. In BOSS Zhipin’s case, as more employers join the platform, more job seekers are attracted, resulting in increased interaction and data to train the AI matching algorithm. A better algorithm enhances the job seeker experience, attracting even more job seekers and ultimately leading to more employers. This creates a reinforcing loop that is difficult to break. 
• BOSS Zhipin has already reached a large enough critical mass for this network effect to be quite organic. This also means that going forward, there is less need to spend heavily on sales and marketing (currently ~45% of revenue) going forward.
• This is an industry where price is not a key differentiator. Being able to provide reliable matches through data can be a key differentiator for BOSS Zhipin to capitalize on to expand its margins in the future. 

5. Financial Position – Prudent capital structure alongside a profitable and OCF positive business model makes BOSS Zhipin primed for growth 

Significant debt headroom

BOSS Zhipin has an extremely prudent capital structure with no debt (excluding very minimal operating lease liabilities). Hence, there is significant headroom to load up on debt in the future when the firm is ready and requires capital to scale. 

Huge cash war chest

It also has RMB 9.75b of cash (as of 31-Dec-22), received from its IPO issuance that is yet to be deployed. Note that the cash was raised at an attractive valuation (before all the Fed hikes in 2022). This gives BOSS Zhipin significant buffer, but also access to cheap capital (alongside debt headroom) to scale or reinvest into R&D. 

Enviable financial position vs competitors

Note that its competitors are in way less enviable financial position. Liepin has only RMB 476m in cash (as of 31-Dec-22) while 51jobs had just a measly RMB 10.5m in cash (as of 31-Dec-21). Nevertheless, note that all 3 companies (BOSS Zhipin, Liepin, 51job) have very low debt on their balance sheets. BOSS Zhipin has a D/E of 0.023x, Liepin has a D/E of 0.059x and 51job has a D/E of 0.085x. 

‍Profitable business model

‍Despite aggressive marketing and R&D expenses in FY22, BOSS Zhipin was still able to achieve GAAP net income and EBITDA profitability. Moreover, the company is also operating cash flow (OCF) positive. Note that BOSS Zhipin’s competitors (51job and Tongdao) are also profitable and OCF positive. Unlike other innovative platform businesses (e.g., ride sharing or food delivery), this is a tried and tested business model and industry that is proven to make money.

6. Capitalization Table – Absence of significant disposal post-IPO lockup period by key shareholders (i.e., founder, early-stage investors) signals strong internal conviction

It is interesting to note that despite the IPO lock-up period being long over, founder Peng Zhao and several early-stage investors like Tencent (Image Frame Investment) and Banyan Partners have not divested to cash out. This is a strong signal of internal bullishness and conviction. 

While there is no significant indication of insider buying to further bolster this argument, note that as of expiry of the lockup period on 18-Dec-21, BOSS Zhipin was trading at about US$36, which is almost twice its offering price of US$19 at IPO – this would have tempted most people to cash out and realize a profit.

7. Valuation Analysis – Reasonable entry price with valuation upside potential 

Relative Valuation 

Screening of comps: Broadly, I split the comparable companies into 3 buckets, to be separately analysed – (i) online recruitment, (ii) offline recruitment and (iii) general Chinese internet companies. Given the relatively small universe of companies in this space, I was quite lenient with including companies as long as they fall into the recruitment sector. Factors like geography, size, capital structure and growth rates had to be considered less.  

Limitations: BOSS Zhipin operates a fairly unique business model, and hence it’s quite difficult to find similar comparable companies. Furthermore, even some of the closer comparables like Zhaopin (delisted in 4Q17), 51jobs (acquired by Recruit Holdings and delisted in 2Q22) and 58.com (delisted in 1Q20) are no longer publicly traded.

Multiples: Traditional valuation multiples including EV/Revenue, EV/EBITDA, P/E and P/B were all considered. Given more time, I would also consider multiples with operational metrics like P/MAU. Both LTM and Forward multiples (FY+1 and FY+2) were used. 

Analysis: 

• Looking at the various valuation multiples that BOSS Zhipin is trading at, it is clear that a lot of the optimism that I have shared earlier definitely does seem to be priced in already. 

• For example, EV/Revenue+2 is at 3.7x, which is higher than both Liepin and Recruit Holdings, all offline recruitment platforms and most other Chinese internet comparables. 
• Another example, P/E+2 of 20.8x is also higher than Liepin, all offline recruitment platforms and most other Chinese internet comparables 

• Having said that, while the multiples are on the high side, they are definitely not unreasonable either, considering that (i) they are not too far off / significantly higher from peers, (ii) there are selected metrics that are trading below online recruitment peers and (iii) BOSS Zhipin’s unique positioning vis-à-vis its peers. 
• Nevertheless, this means that the margin of safety is lesser. 

Intrinsic Valuation 

To supplement the relative valuation, I did a simple DCF to derive intrinsic value. Very conservative assumptions were used, by referencing broker consensus and market growth forecasts. I did an 8-year DCF, with a forecast until FY30. Some assumptions used below.

• Top-line growth at 6%, in line with market growth rate, and way below analyst consensus expectations (note analyst consensus is >30% yoy growth from 2023 to 2025)
• EBITDA margins to gradually increase to 7.9% by 2030E, driven mainly by decrease in sales and marketing expenses as network effect strengthens (note analyst consensus is 33.39% by 2025)
• Depreciation and Capex projected as a % revenue and in line with historical figures
• NWC projected as a % of revenue, cogs and SG&A and in line with historical figures
• WACC = 5.55%, using CAPM to derive cost of equity and a synthetic credit rating to arrive at a default spread for cost of debt (note that cost of equity is very low due to the stock’s low beta)
• Terminal growth rate to be 2.5% and exit multiple to be 8.3x EV/EBITDA 

The end result is an intrinsic value of US$17.89 based on extremely conservative assumptions.

Broker Consensus 

Analysts appear to be quite bullish on the stock, as seen below. Unfortunately, I do not have access to the details of the other brokers, nor the equity research reports from any brokers below. Thus, I am unable to dig deeper into this. Nevertheless, all 5 analysts I have access to gave a buy call, though target price ranges quite a bit. 

8. Risk Analysis  

Growth outside of China may be limited due to product-market fit issues 

Currently, there is no other app that runs in a similar model as BOSS Zhipin in overseas markets. Management have expressed interest in expanding abroad, especially in markets where enterprises have more money and willingness to pay for such services. Nevertheless, this will likely be more of a mid to long term aspiration and there is significant risk that BOSS Zhipin's model won't work overseas.

BOSS Zhipin employs a unique China-bred recruitment methodology which cuts off the HR middlemen in the recruitment process. Such a model might not easily take-off in other markets, especially where traditional recruitment processes have been proven to be effective for decades. 

Moreover, this model seems to be more effective when targeting blue-collar workers – and thus, BOSS Zhipin’s model may not gel well with developed countries that have low composition of blue-collar jobs. 

Mitigant 1: Nevertheless, the sheer size of the Chinese domestic market significantly downplays this risk. According to BOSS Zhipin’s HKEX IPO Prospectus, the company only has 6.1% market share in the online recruitment industry in terms of online recruitment revenue as of 30-Jun-22 [Source]. Hence, there is still significant headroom for growth – and conquering the Chinese market alone is already sufficiently lucrative (c.18% of the world’s population). 

Mitigant 2: Furthermore, BOSS Zhipin can always consider M&A to grow inorganically in overseas markets. Recruit Holdings did the same by acquiring 51jobs to gain Chinese exposure. 

Regulatory overhang still remains 

Given the Chinese government’s history with imposing sudden regulations that almost wiped-out entire industries (e.g., education, gaming), BOSS Zhipin is not spared from regulatory overhang – especially since it was subject to a cybersecurity review in Jul-21 and forced to stop taking on new users. Of course there is also the risk of VIEs [Read more here]. 

Mitigant 1: In the near-term at least, further regulatory restrictions are unlikely to be in the government’s interest, given already poor sentiments towards its economy. Guo Shuqing, the Communist Party boss at the People’s Bank of China told Xinhua news agency in early January that “The crackdown on fintech operations of more than a dozen internet companies is basically over” [Source]. 

Mitigant 2: My personal observation is also that the Chinese government has been directing its regulatory grip towards industries that directly affect family-building (e.g., education, property, etc.), in response to addressing its structural demographic problem. To me, BOSS Zhipin is in a sub-sector within the Chinese internet industry that has significantly less regulatory risks. 

Mitigant 3: BOSS Zhipin has made a secondary listing on the HKEX. Hence, even if the Chinese government demand a delisting of its ADR on the Nasdaq, BOSS Zhipin will still be able to trade its shares on the HKEX. 

Potential rise in competitive pressure 

Existing competitors or new entrants may gear up marketing efforts and therefore, snatch away BOSS Zhipin’s market share. Sales and marketing expenses for FY22 was 44.4% of BOSS Zhipin’s revenue (RMB 2b). Having to keep up with such high marketing spend will impede margins in the long-run. Douyin (China's TikTok) for example is an up and rising threat due to its large traffic and advanced recommendation algorithm. Moreover, blue collar job seekers do not care about career planning as much and often look for jobs impulsively, aligning well with the nature of Douyin's content and style.

Mitigant 1: As mentioned above, BOSS Zhipin has a strong economic moat via its network effect. It also has a large cash war chest it can rely on to combat aggressive marketing efforts from existing competitors or highly funded new entrants. 

Mitigant 2: Competitors like Liepin (62.6% as a % revenue OR RMB 1.65b in FY22) and 51jobs (40.5% as a % revenue OR RMB 1.79b in FY21) have already been spending significantly on sales and marketing. Yet, BOSS Zhipin was still able to increase its market share over time – due to its strong product-market fit. A further increase in competitive pressure is thus not as threatening as it may appear to be. 

Weak corporate governance, especially through its board structure 

Firstly, Peng Zhao, is Founder, CEO and Board Chairman all at the same time. Furthermore, he has 66% voting power (due to a dual class structure). This means that there basically exists an individual with unfettered power of decision-making. This is typically seen as a governance issue, since Peng Zhao can theoretically make decisions that benefit himself more than the shareholders of the firm (i.e., Type II agency problem). 

Mitigant: Nevertheless, this can also be seen from a positive angle. Peng Zhao has the most skin in the game and is likely the man best fitted to helm and make tough decisions for the firm (given that he was CEO of Zhaopin, another online recruitment platform, before starting BOSS Zhipin). Having such control will enable him to follow through decisions that others may disagree due to lack of experience dealing with HR services. 

Secondly, out of 9 members in the board, only 3 are independent. The Corporate Governance code in China seems to advocate for more than one-third of the board of directors to be independent directors [Source]. Hence, BOSS Zhipin fulfils this to just the bare minimum. However, note that one of the independent directors (Wang Yusheng) is a 79-year-old with concurrent positions within the China National Education Advisory Committee and Chinese Alliance of Science Popularization. In my view, it is unclear if Wang Yusheng will be able to fulfil his board duties religiously given his age and other commitments. 

Thirdly, board diversity is clearly lacking. Board members can be broadly classified as Chinese male with a finance or internet company background. All 9 board members are Chinese and there is only 1 female representative. Board diversity is typically seen positively because diversity in perspectives (e.g. gender and age), help avoid groupthink and foster constructive debate. 

9. Concluding Thoughts and Potential Catalysts

This is a capital light business playing in a growing market, with a defensible core and attractive unit economics. However, it seems like our optimism is shared by the markets, as reflected by the relatively high multiples BOSS Zhipin is trading at.  Nevertheless, entry price is still reasonable (though definitely not at a discount) and my personal view is that the potential upside outweighs the risks involved. I am planning to make a small position in BOSS Zhipin (considering that I am already fairly exposed to Chinese tech equities via 3067 and that the stock isn’t trading at a significant discount). 

Some potential near-term catalysts include: 

• Efforts from the Chinese government to stimulate the economy via fiscal stimulus will boost economic data and revive investor confidence. Recently, we saw the Chinese government announcing fresh news to address the property market [Source]. Perhaps, more attention will be extended to pushing out large scale fiscal stimulus soon. 
• Improved geopolitical tensions and greater certainty over economic and security policies toward China from the US will help boost market sentiments and confidence. Unnamed sources have indicated that US Secretary of State Antony Blinken is expected to make a visit to China in the upcoming weeks, as reported by multiple media outlets. This visit holds great importance as it could potentially contribute to the enhancement of relations between the US and China. The itinerary, if confirmed, would involve discussions with prominent Chinese authorities, potentially even including President Xi Jinping [Source]. ‍
• Fresh growth plans announced, aiming to provide further value-add to its existing user base for further monetization: BOSS Zhipin has a large user base, which it can potential develop new complementary HR solutions (e.g. background checks, HR outsourcing) for in the future to provide further value-add, and generate new income streams. Note that the company is well positioned to do this given their existing large cash war chest and high debt headroom. Such actions will also boost investor conviction in its long-term growth.

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