The Chinese central government last year launched “Hu-Gang Tong“, a system allowing investors in Hong Kong and on the mainland to trade in stocks listed on the other side’s bourse through securities firms in their own market. Acting on this development, startup NewsyStock aims to help small investors who are interested in overseas stocks.
Securities analysts publish detailed reports on about 500 companies in Korea, or nearly a quarter of the 1900 listed companies. The problem is that the analyses are restricted to large capital stocks, to meet many securities firms’ needs. As individual investors tend to invest small amounts of money for relatively brief periods, they lack information about penny stocks, and accordingly invest based on what other people recommend after a quick search on the internet. Not many of them get into the company’s website or DART (Data Analysis, Retrieval and Transfer) System to analyze all the financial statements of the company they invest in.
Newsystock is a quantitative data based analysis system that provides accurate analysis and equity purchase recommendations in line with Korean stock market trends. They gather financial raw data, evaluate every listed stock with their unique system, then deliver the results to investors. The company also enables its users to analyze any stock by themselves, providing a thorough analysis of any stock within five minutes.
NewsyStock differentiates itself through its technology and the seasoned talents of its team. Co-CEO Hong-Jib Moon was selected as one of the ‘50 Stars of Asia‘ by BusinessWeek for his pioneering development of online brokers in South Korea. Co-CEO Ryan Moon previously worked as a senior consultant at PwC and worked in asset management at Polaris Securities (now Yuanta Securities). He is also a graduate of Draper University, Silicon Valley’s top entrepreneurship program and accelerator founded by Tim Draper.
The company’s business model is subscription based, with prices ranging from US$100 to US$550. Since its launch, the company has focused on the B2B market, with many security companies adopting NewsyStock since the market has been stagnant for a long time. They also boast partnership with Kiwoom Securities Co., Hankook Economy TV, and Kakao.
Moon said that the company aims to further its service throughout Asia to make co-relation analysis possible. The company currently provides information on individual stocks, but when overseas data are accumulated, they’ll be able to provide deeper analysis when Apple’s share price goes up and Samsung’s goes down, for example.
NewsyStock is currently available in English in web and app versions. Moon added that they will launch a Chinese version with securities analysis of Chinese companies in the second half of the year.
Editing by Mike Cormack (@bucketoftongues)