EXPLOREMY LIBRARY
Business & Finance
CKGSB Knowledge - China Business and Economy

CKGSB Knowledge - China Business and Economy Winter 2015

CKGSB Knowledge is an English language business publication focused on China. It features original articles on business and economy in China, the evolution of “Made in China”, policy issues, the rise of Chinese companies, the emergence of Chinese multinationals, and foreign multinationals’ strategy and operations in China. It also features interviews with influential thought leaders and CEOs, both Chinese and global, on trending topics. CKGSB Knowledge provides a unique vantage point from which to discover the latest general and China-specific business trends. It also provides a matrix to understand how emerging markets are transforming the global business landscape.

Country:
United States
Language:
English
Publisher:
Cheung Kong Graduate School of Business
Frequency:
Quarterly
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4 Issues

in this issue

3 min.
understanding china’s planned economy

China’s recently released 13 five-year plan reminded me of how the country has changed since 1979, the year I became an undergraduate of the Department of National Planning and Statistics at the People’s (now Renmin) University in Beijing. One of the major courses was National Economic Planning, primarily about Wassily Leontief’s “input and output tables”, taught by a Chinese professor who used to study in the Soviet Union. Many of the graduates of our department ended up working in the development of China’s five-year plans. Over the past 30 years, the meaning of the plans has been changing along with the decision-making process of China. As the market, instead of the state, plays a much more important role in China’s economy, the so called “plan” is more like a “direction”…

1 min.
china data

Traveling Together As part of a share swap deal involving two of China’s largest online travel companies, Ctrip will take a 45% stake in its rival Qunar, while Baidu, which backs Qunar, is to take a 25% stake in Ctrip. Qunar and Ctrip will remain separate companies. Funding Charge Private equity and venture capital investment in telecommunications, media and technology in China over the first half of 2015 reached $15.6 bn— almost as much as the full-year figure in 2014, $15.9 bn. Away From Home Corporate R&D spending done by firms headquartered outside of the country in 2015 Treat Yourself China’s annual Singles Day sales yet again broke records this year, with Alibaba leading the way with RMB 91.2 bn ($14.32 bn), an increase of 60% over last year. Towers of London Vanke has entered the UK’s commercial real…

1 min.
rise and fall

In August, the renminbi was suddenly devalued after market forces were introduced into the way its trading band was calculated, once again casting the spotlight on this most contentious of currencies. Typically, thanks to the interventions of US politicians, the conversation has centered on accusations that the renminbi has been kept artificially low as part of a ploy to boost Chinese exports. However, such a view hasn’t been supported by analysts, and in the Summer 2015 issue of CKGSB Knowledge several went on record as saying the renminbi was in fact overvalued.…

14 min.
a shift in key

Until recently, Zhengzhou probably felt like China’s future. The capital of the inland Henan province has been on a construction binge over the past dozen years, building out to become the heart of hinterland China. The largest high-speed train station in the world opened on the eastern boundary in 2012, burnishing Zhengzhou’s credentials as a transport hub. Zhengdong district, completed in 2013, is larger than the rest of the city put together. Zhengzhou built itself up by gorging on investment and debt. Now development has slowed in tandem with the rest of China. GDP growth fell to 9.6% in the first half of 2015, an improvement from 9.3% in 2014 but down sharply from an average of more than 13% in the past decade. Zhengzhou is confronting the ‘New Normal’, a stock…

14 min.
welcome to the wechat galaxy

Alex Zou can’t imagine life without WeChat. The Hong Kong-based private banker and Beijing native uses Tencent’s ubiquitous mobile app to pay his bills, hail a taxi, order food and shop. “I spend about 40% of the time I use my smartphone on WeChat,” he says. “It’s useful to chat with my friends, but it’s the convenience of the other functions that makes it so important to me.” In just over four years, WeChat has evolved from a simple free messaging app into China’s paramount mobile portal. With 650 million monthly active users, it has a commanding position in the world’s biggest smartphone market. Tencent has used WeChat to create a mobile ecosystem for China, which has more smartphone than PC users. By steadily integrating value-added services into the app, Tencent has…

15 min.
the party planners

China’s state media aren’t known as a source of viral internet content, but when Xinhua quietly released a video on Twitter purporting to explain the Shisanwu, or China’s 13 Five-Year Plan (FYP), they managed to create just that, with the video quickly becoming the talk of both veteran China watchers and the general public alike. For anyone unfamiliar with the video’s cavalcade of cartoon images and quirky self-parody, the overall impression it creates is that of a diligent government applying expertise and deep public spiritedness to the full range of China’s challenges. For completeness, the video features a diplodocus that looks only marginally less confused than most viewers must have been by the time it strolled into view. Perhaps no one pointed out to him that he was supposed to symbolize…