In The Media
July 21, 2018
CGTN / Professor Wu Changqi of the Guanghua School of Management recently published an Opinion piece in CGTN discussing Tesla’s investment in a wholly-owned super-factory in Shanghai. In China’s auto-market, which is dominated by joint ventures, Tesla’s investment makes it the first wholly foreign-owned automaker in China and signals a push by the Chinese government to implement new initiatives regarding foreign direct investment. Though the share of FDI in total capital formation has inevitably declined as China’s economy has continued to grow, we can expect a steady flow of high-quality investment from foreign multinationals corresponding with new measures from the State Council for stimulating foreign direct investment.
July 7, 2018
June 1 - 7, 2018
IP Protection May Benefit All of Society
China Daily/ Guanghua Professor LI Xing espouses the benefits of IP protection while also suggesting that protection should not be extended too far or risk stifling creativity. Professor LI illustrates his point about the value of IP protection by referencing a study of increased opera output during the Napoleanic Wars following the introduction of protections. He also shares his own research which suggests that excessive protections prohibitively increase prices and limit the penetration of new IP.
Apr. 27, 2018
Northern China ozone pollution getting worse
Yahoo / Professor Chen Songxi, head of the department of business and economic statistics at the Guanghua School of Management of Peking University, shares his insights and clean-up plan regarding the air pollution issue in China after publishing his most recent environmental study. He stated that regional declines in the amount of PM2.5 and PM10 have reduced the volume of floating particles and increased the strength of the sunlight required to produce ozone. Solutions to address the transportation-related nitrogen oxide emissions, especially in the Jing-Jin-Ji region, may need to be considered. Professor Chen's study was featured in articles by Reuters, Bloomberg and China Daily.
Nov. 3, 2017
China Daily / China sees a clean environment as the path forward toward an upgraded industrial structure. President Xi Jinping has summed up China's strategy for economic restructuring as striving for both "green mountains and gold mountains". The strategy combines environmental protection with a broad plan to restructure industry toward higher value-added manufacturing, away from the old reliance on heavy industry, resource extraction and low-tech steel and coal production.
Oct. 31, 2017
Kellogg Dean Emeritus Don Jacobs dies at 90
Northwestern / Donald P. Jacobs, dean of Northwestern University’s Kellogg School of Management from 1975 until 2001 and professor of finance since 1957, died October 30, surrounded by his children. He was 90. Dean Jacobs was praised for his intelligence, tenacity and vision which transformed Kellogg into one of the world's premier management education schools.
SCMP/ China needs a strong leader if it’s to clean up its debt mess and rebalance its economy, a long-time watcher of the Chinese economy has said. Michael Pettis, a professor of finance at Peking University’s Guanghua School of Management, said President Xi Jinping’s consolidation of power at the Communist Party’s national congress last week was necessary to put growth on the right track.
Oct. 26, 2017
China must grasp opportunities of new retail era
Global Times / A new retail era is beginning, largely thanks to the upgrading of technology and consumption. Modern technology enables us to truly understand the needs of consumers and convert this information into the data needed by the production side so that more accurate predictions can be made. Based on this massive amount of data, the entire value chain can be more efficient in meeting the needs of consumers, and the supply side can be optimized.
NewsCenter.io / Median Technologies (Paris: ALMDT), The Imaging Phenomics Company®, has announced the appointment of Vivian Wang as China general manager. In this new role, Wang is responsible for scaling Median’s operations and commercial teams. She will ensure the execution of the strategic plan across Greater China and the delivery of key company and customer milestones.
Business Insider / Median Technologies (Paris:ALMDT), The Imaging Phenomics Company® today announces the appointment of Vivian Wang as General Manager, China and the appointment of Takashi Hayashi as Managing Director, Japan.
Oct. 19, 2017
Expert suggests Xiongan can open its own universities
China Daily / Xiongan New Area in North China's Hebei province can establish one or more high-level universities on its own, a university expert said. "During its construction and development, Xiongan also should improve its own innovative system, rather than only receive innovative resources from Beijing," Li Guoping, head of the Beijing Development Institute at Peking University, was quoted as saying by China Newsweek.
China Daily / Having stayed in close contact with China and its people for four decades, John Holden, associate dean of Peking University's Yenching Academy, is amazed by how Chinese people have changed during the past 40 years. Now responsible for recruitment of international students and university partnerships at the academy－established in 2014 to offer fellowships in China studies to elite international and Chinese master's students－Holden said later generations could not imagine what China was like when he first came in 1974.
Business Insider / They were born after the crushing of the Tiananmen Square pro-democracy protests, raised mostly without siblings during an unprecedented economic boom, and came of age as Xi Jinping, China's strongest leader in decades, ascended to power. It's a generation that grew up in an era of prosperity and peace; one that has not "eaten bitterness" - or struggled - as their parents and grandparents did.
Oct. 17, 2017
Coming of Age in an Era of Prosperity: Meet China's 'Bubble Generation'
US News / They were born after the crushing of the Tiananmen Square pro-democracy protests, raised mostly without siblings during an unprecedented economic boom, and came of age as Xi Jinping, China's strongest leader in decades, ascended to power. It's a generation that grew up in an era of prosperity and peace; one that has not "eaten bitterness" - or struggled - as their parents and grandparents did.
Oct. 16, 2017
Yes, Chinese Consumer Are Rising. But They Are Changing Even Faster
LinkedIn / Rising Chinese consumers are now a real economic phenomenon, which definitely wasn’t the case 10 years ago. Between 2010 and 2015, they increased in annual consumer spending by $1.1 trillion. That is a big number and represented over 25% of all global growth in consumption. Note: increasing consumption by American consumers was also about 25% of global growth in consumption.
Oct. 10, 2017
International Students Flock to Chinese Universities
China Today / IN 1950, a year after the founding of the People’s Republic of China, the country received its first group of 33 international students. As of 2017, China is the first choice for many international students in Asia, and ranks a world third overall. China’s emergence as an economic, scientific, and cultural powerhouse has prompted more and more international students to further their education at Chinese universities. China now hosts almost 10 percent of all international students – a number likely to rise.
Oct. 9, 2017
How the NBA China Became a Unique Cross-Border Media Platform (Pt 3 of 3)
LinkedIn / "By 2004-2005, the NBA China plus Yao Ming had begun to occupy a unique media position between the US and China. Western brands discovered they could reach millions of Chinese through the NBA. Similarly, Chinese companies seeking to go global found they could advertise at NBA games and reach both Western and Chinese audiences at the same time. And even domestically focused Chinese companies found that they could reach Chinese consumers by advertising at games in the US.
LinkedIn / "You can make an analogy between Chinese watching basketball in the 1990’s and Americans watching The Ed Sullivan Show in the 1960’s. Americans weren’t watching because Ed Sullivan was particularly great looking. In fact, he was a pretty ugly guy to be on television. Most Americans watched him because there were only three television stations back then and he was what was on.
LinkedIn / The following is an excerpt from our book, the One Hour China Consumer Book. It is our best explanation for how the NBA has been so hugely successful in China. "This story begins in 1978-9 with two events. First, Abe Pollin, owner of the then champion Washington Bullets, received an invitation from Deng Xiaoping to come to China. While both China and the US had exchanged amateur athletic delegations prior, the Washington Bullets’ visit to China was the first time a professional North American team had visited the newly opened China.
Credit Frenzy in China
BBC / Consumer spending is booming in China, but so is consumer debt - is the country following the same path that led the Western world into financial meltdown in 2008?
Oct. 5, 2017
Beijing's Big Plan
BBC / Xiong’an, a small rural town in China, is set to become a city of 5 million people over the next decade. That's the government's plan at least. But could the whole thing end up as an expensive white elephant?
FT / China’s elite business programmes are increasingly international in their focus and have mostly escaped a clampdown on "western" values, but there are tighter controls on EMBAs and there are signs of more scrutiny. Read our report, which also includes a listing of business schools in China, Hong Kong and Taiwan.
amigobulls.com / Shares of Jack Ma founded Alibaba Group Holding Ltd (NYSE:BABA) have had an amazing bull run in 2017 but the rally has stalled over the past few weeks. Alibaba stock is still up nearly 98% in the year-to-date and Wall Street suggests the growth in BABA stock has just got started.
Xinhua / In the past decade, you needed an ID card to book flight tickets, reserve hotel rooms and open bank accounts, but now people no longer need such documents to prove their identities: their faces alone are enough.
Sept. 28, 2017
Lower cost courses attract foreigners from Brics and Africa
FT / Chinese schools open up opportunities unavailable in the West. Miatta Momoh believes in miracles. At least that is how the Londoner describes the unlikely way she wound up on the MBA course at Peking University’s Guanghua School of Management. Ms Momoh had been made redundant from a UK digital publishing house, where she had been a client services manager, and travelled to Beijing to visit her mother, who works there as Sierra Leone’s deputy envoy to China.
LinkedIn / Medical tourism from China is surging. According to Ctrip (via a recent Cheung Kong Graduate School of Business report), there were over 500,000 outbound medical tourism trips from China in 2016, a 5x increase from 2015. And the average spending per trip was a stunning 50,000 RMB, more than 10x typical Chinese tourist spending.
Sept. 25, 2017
Video Shows a Year In the Life of a China Shared Bicycle
LinkedIn / Over the course of a year, this Mobike in Shanghai was:
Sept. 22, 2017
S&P downgrades Chinese debt as lending surges
AXIOS / S&P downgraded China's debt this week, saying that economy-wide debt increases since 2009 have propped up economic growth but also "diminished financial stability." The decision is a recognition that China's debt — lending that has been funneled to local governments and state-owned enterprise for GDP growth-inducing investment projects of dubious long-run worth — is growing an accelerating rate.
LinkedIn / Chinese O2O food delivery company Baidu Waimai is being sold to competitor Ele.me. So Ele.me (Alibaba-owned/backed) and Meituan Waimai (Tencent-owned/backed) now dominate the space:
Sept. 15, 2017
It Is Neither Realistic Nor Feasible To Ban Bitcoin: China’s Leading Newspaper
The Coin Telegraph / Major Chinese news outlet People has released an article stating it is “not feasible” to ban Bitcoin in China. According to the author, Guanghua University professor Liu Xiaolei, authorities should only be concerned about cryptocurrency’s potential to increase speculative moves in the domestic economy.
Sept. 7, 2017
Sally Blount to step down as Kellogg dean
Northwestern Now / Sally Blount, dean of Northwestern University’s Kellogg School of Management and the first woman to lead a top business school, will step down at the end of the 2017-18 academic year after solidifying Kellogg’s place among the world’s premier business schools, Provost Jonathan Holloway announced today.
Sept. 6, 2017
Why Does China Need a New Breed of Companies?
VoxChina / Understanding corporate China and its future dynamics is the key to understanding the Chinese economy and its undergoing transformation. The intellectual framework proposed in this work can be summarized by a simple identity: Growth Rate = Return on Invested Capital (ROIC) X Investment Rate. To successfully achieve China’s economic transition without losing a lot of growth at the same time, China needs to improve ROIC at the aggregate level.
Sept. 6, 2017
Know your customer - HNA
China Accounting Blog / There is a shocking report that Goldman Sachs has suspended its work on HNA’s planned US IPO of subsidiary Pactera because it was unable to meet the bank’s internal “know your customer checks”. HNA has been criticized for its opaque ownership structure, but it is surprising that Goldman Sachs could not get a look under the sheets.
China Daily / China's coal consumption declined unexpectedly by almost 10 percent from 2014 through 2016. Since coal is the largest source of carbon emissions, this also led to a decline in greenhouse emissions long before previously projected. What made this possible? A recent study published in Nature Geoscience by Tsinghua professor Qi Ye and coauthors concluded: "A combination of slowing GDP growth and a structural shift away from heavy industry, along with more proactive policies on air pollution and clean energy, have caused China's coal use to peak."
August 28, 2017
The Solution to China's Digital Health Problems? Go Direct to Consumers.
LinkedIn / In the past 6 months, there has been a lot of soul-searching by entrepreneurs, venture capitalists and Internet companies about what has gone wrong in Chinese digital health. Thousands of digital health companies have been launched and funded in recent years but there have been few, if any, big successes. And, as detailed in a Bloomberg article, even China’s largest tech tycoons have failed to realize their healthcare dreams. Baidu is closing and/or merging its healthcare units into other businesses. Ali Health is still losing money and its stock is down 70% from its 2015 peak.
August 25, 2017
China could be a major Brexit beneficiary
China Daily / UK's potential significance as source of technology and know-how is much greater than raw trade numbers suggest. In June last year, the British people voted, by a majority of about 4 percent, to leave the European Union - an event that immediately became known as "Brexit". On March 31, 2017, the June 2016 vote was converted by the British government into a formal request to the headquarters of the European Union in Brussels. The United Kingdom's severance with the EU will become complete at midnight on March 31, 2019.
August 24, 2017
Savvy Westerners lured East for their MBAs
Nikkei Asian Review / Apricot Wilson and Sebastian Lanfranco came from opposite ends of the earth to study for their MBAs in Asia. Wilson, 29, was born in London, obtained her undergraduate degree at University of Cambridge and later worked in finance in Luxembourg before deciding to head to Shanghai to enroll at the China Europe International Business School (CEIBS).
August 24, 2017
Asia schools itself in the art of business
Nikkei Asian Review / There are plenty of metrics to chart Asia's economic rise over the last two decades, ranging from economic growth rates and industrial output to tourist numbers and car sales. Less noticed, but just as striking, is the emergence of around a dozen first-rate Asian business schools. According to the Financial Times* global ranking of Master of Business Administration courses -- an annual league table based on jobs found and money earned by graduates -- 11 Asian business schools feature in the top 50 this year (including INSEAD, founded in France in 1957, but now French-Asian, with a campus in Singapore since 2000).
August 23, 2017
PFICs and VIEs
China Accounting Blog / The United States has the most complicated tax system of any country. A major reason for this is that Congress has added so many provisions in efforts to combat tax evasion; unfortunately, the complexity just creates an opportunity for bright tax planners to find new loopholes, and for the unwary to fall into a trap. I fear that many of the US listed Chinese companies have a tax trap for the unwary.
LinkedIn / "In September 2013, premier art auction house Christie’s held its first-ever auction in China. They have had a representative office in Shanghai since 1994. And they have been running auctions out of Hong Kong for decades. But this small auction (about $25M) was their first in the Mainland.
The Best of EQUIS Accredited Business Schools in Asia & the South Pacific, Europe and North America - 2017
Newsweek / This year marks the 20th anniversary of EQUIS - EFMD Quality Improvement System, launched two decades ago at the Deans and Directors General Conference at Schloss Gracht, now part of the ESMT Berlin. This international quality benchmark and improvement process was created to give European and, subsequently, business schools worldwide, a rigorous tool to assess, certify and improve their quality in ten key areas, including governance, programmes, students, faculty, research and, foremost, internationalisation, ethics, responsibility and sustainability as well as corporate engagement.
August 9, 2017
Ozone issue surfaces as PM 2.5 falls
China Daily / Beijing-Tianjin-Hebei region's problem is shared by many developed countries. The smog-filled Beijing-Tianjin-Hebei region has seen improvement in combating particulate pollution, such as PM2.5, since 2013, but faces worsening ground-level ozone pollution during the summers, a challenge many developed countries share, a new report from Peking University said.
August 9, 2017
Are falling levels of PM2.5 creating new ozone air pollution woes in Beijing area?
SCMP / In northern China, levels of the notorious PM2.5 particulate have gone down in tandem with reduced coal use in recent years, but now another hazardous air pollutant is on the rise. Ozone pollution has been worsening in Beijing and its neighbouring cities, a problem that can lead to serious health problems, a new study has found. Levels of the pollutant went up by 13.3 per cent from 2013 to 2016 in the 13 cities of the Beijing-Tianjin-Hebei area – an industrialised region with 130 million residents – according to the Peking University study.
August 8, 2017
My Visit to Mobike Headquarters and What I Learned From Founder Hu Weiwei (Pt 1 of 2)
LinkedIn / In late July, I did a tour of Mobike’s headquarters in Beijing – and I had a fascinating talk with founder Hu Weiwei and VP of International Expansion Chris Martin,. It was a fantastic experience and I left with a much better appreciation of the rocketship ride the company has been on. I am writing up three (more serious) business articles on the bike-sharing business from this experience. But here is a summary of my trip - and then five big things I learned.
August 7, 2017
Will Mobike Merge With Ofo?
LinkedIn / I think we are officially at the end of Phase I of China’s bike-sharing / bike-rental phenomenon. There are now a couple of clear leaders – Mobike and Ofo. The services are experiencing tons of daily usage by Chinese consumers, and growth is continuing rapidly. This is definitely not a fad. The economics of the business are becoming clearer. Rental revenue is still the foundation. Advertising revenue may be part of the picture. Some Ofo bikes, for example, have had Minions advertisements on them (see picture below). And perhaps delivery and e-commerce revenue will come in the future. Finally, recent numbers coming out of a Mobike White Paper are pretty interesting. The 2017 Mary Meeker / Hillhouse report on the industry has a couple of good slides on this as well.
July 30, 2017
At Home And Abroad, Chinese Companies Can Beat You Fair And Square
LinkedIn / Chinese companies have gotten to global scale in record time. They are now global in the sense that they have scale, they are competing with global players in and beyond China and they are at global levels of capability. According to a recent analysis by MGI, the top quartile of Chinese companies now earn returns comparable to US companies. And among the top 5,000 companies worldwide by market capitalization (2015), Chinese (excluding Hong Kong) companies now account for 1,107, a significant rise from 326 back in 2000.
July 28, 2017
China brightens Fortune ranking
China Daily / The number of Chinese companies on the Fortune Global 500 list has reached 115, with the addition of 10 first-timers this year. The number has been rising for the last 14 years. According to the latest Fortune Global 500 list released on July 20, among the 10 new entrants are locally well-known names such as Anbang Insurance Group, Alibaba Group and Tencent Holdings.
LinkedIn / Multinationals and entrepreneurs come to China dreaming of 1.3B consumers. But what they actually encounter is a sea of ruthless competitors and pervasive political challenges and complications. It’s a ferocious market and most fail. A rare few fight their way through, ultimately arriving bloodied at a certain level of success, or at least a viable market share.
Just a matter of time
IFRAsia / Twenty years after the Asian financial crisis, the region’s economies are stronger and its finances more secure. While lessons have been learned, however, some flaws remain unresolved, and China’s dominance has brought with it new risks.
It was Georges Clemenceau, a French statesman and one of the architects of the Treaty of Versailles, who observed that the minds of military generals were constantly locked into the past, striving to win the last war they fought.
July 25, 2017
Chinese firms ascend global rankings
China Daily / Chinese firms continue to ascend global rankings as their competitiveness grows with the country's transitioning economy. The Fortune Global 500 list is seeing a China boom this year, the renowned magazine said on its website.Chinese firms filled an unprecedented 115 places on the 2017 list released last week, only 17 less than the top performer, the United States, and marking the 14th year China has increased its presence on the list.
China Daily / Chinese firms continue to ascend global rankings as their competitiveness grows with the country's transitioning economy. The Fortune Global 500 list is seeing a China boom this year, the renowned magazine said on its website. Chinese firms filled an unprecedented 115 places on the 2017 list released earlier this week, only 17 places less than the top performer, the United States. and marking the 14th-straight-year China has increased its presence on the list.
July 24, 2017
China brightens Fortune 500 list
China Daily / The number of Chinese companies on the Fortune 500 list has reached 115 with the addition of 10 first-timers this year. The number has been rising for the last 14 years. According to the latest Fortune 500 list released on Thursday, among the 10 new entrants are locally well-known names such as Anbang Insurance Group, Alibaba Group and Tencent Holdings.
July 21, 2017
China Daily / China's policies to promote industrial transformation and to shift its energy mix are leading to unexpectedly rapid environmental progress. China's coal consumption declined unexpectedly by almost 10 percent from 2014 through 2016. Since coal is the largest source of carbon emissions, this also led to a decline in greenhouse emissions long before previously projected. What made this possible?
July 17, 2017
The Awesome Story of Wang Shi and China Vanke (Part 2 of 2)
LinkedIn / "That changed in November 1988 when Shi participated in a land auction for the first time. He made an astonishingly high bid for the “Vuitton Villa” land plot in Shenzhen. His bid was so high it surprised everyone, including the auction officer. But it got him into the real estate game. And with his first real estate project acquired, his company began to transform from a trading house (called the “Modern Educational Equipment Exhibit Center”) into a real estate developer.
July 17, 2017
The Awesome Story of Wang Shi and China Vanke (Part 1 of 2)
LinkedIn / China Vanke is a real estate company that has no equivalent in the West. The company’s revenues are greater than the top four American real estate developers combined. It has built more apartments than any other company in history. And Wang Shi, the founder, is now the world’s largest real estate developer. He is also the person who has provided a defining event for millions of rising Chinese: the purchase of their first home.
LinkedIn / So it’s been +6 months since Taco Bell officially returned in China, re-opening in Shanghai approximately nine years after they closed their last China branch in 2008. Their one outlet in Liujiazui is now humming along. And as a long time Taco Bell fanboy, I felt it was high time for a visit. My assessment is the following.
July 12, 2017
Competition heats up as Chinese companies target global bike share markets
Bicycle Retailer / Ofo, a Chinese company with plans to rewrite the global rules on bike sharing, got a $700 million cash infusion last week in another round of financing. The cash will help finance its plans to more than triple its distinctive yellow bikes with a global fleet of 20 million units stationed in 200 cities worldwide. And The Wall Street Journal reported Monday that Mobike, Ofo's chief rival, began advertising for help in the Washington, D.C., area as the company makes plans to move into the U.S. market.
July 10, 2017
China Can Innovate Big Time
LinkedIn / So what has been happening is China has been playing catch-up with regards to technology. Importing foreign technology has been a major part of this. For example, Foreign Direct Investment has been running at about $70 billion per annum for decades. In automotive, telecom equipment, chemicals, and many other sectors foreign investors have been the cornerstone for technological development. This importing phenomenon has tended to reinforce the “China can’t innovate” stereotype.
July 9, 2017
China Needs Smarter Not Faster Growth
LinkedIn / China needs smarter, not faster growth, the fall in China’s nominal GDP growth from 10% to 5% has been a huge story for the past several years. And every year, there is a lot of media commentary when China’s latest GDP growth numbers get released. For example, there was a ton of discussion when growth recently fell from 7.6% to 6.8%. And while this is entertaining, it is mostly nonsense.
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En Chine, la ligne rouge du virage vert
Le Monde Diplomatique / Après le retrait américain de l’accord de Paris, Pékin se présente en champion de la lutte contre le réchauffement climatique. Dans le pays le plus pollué de la planète, le pouvoir central voit d’un bon œil les initiatives des défenseurs de l’environnement… à condition de ne pas être lui-même remis en cause.
July 6, 2017
Accounting and the negative list
China Accounting Blog / China has long restricted foreign investment in sensitive sectors of its economy. These restrictions appear to have had two primary motivations – protecting state security and social stability, and protecting state owned enterprises from foreign competition. The former has led to keeping foreigners out of media, internet, and defense sensitive sectors. Restrictions protecting SOEs from foreign competition were largely negotiated away during China’s accession to WTO.
LinkedIn / *The following is an excerpt from the One Hour China Book, for which a new 2017 version is available here.
"There is a great story about Steve Jobs freaking out about six weeks before the first iPhone was released. It was reported by The New York Times and has become part of the folklore of Steve Jobs. The story goes that about a month before the iPhone release, he summoned his senior team and told them that the iPhone needed a glass screen. The plastic screens on the prototypes were too easily scratched. He wanted an un-scratchable glass screen. And he needed it redone before production started in 4-5 weeks.
June 30, 2017
Value creation is key for great companies
China Daily / China's economy needs to shift toward getting the most return from investments, says professor Liu Qiao. In 1995, China had no businesses with revenues large enough to be included in the Fortune Global 500 list of the world's largest companies. By 2015, 106 Chinese companies were on the list, gaining fast on the 128 based in the United States. Does this mean that China's corporate sector is healthy, even great?
June 30, 2017
Mr. Liu Chuanzhi
China Daily / In 1984, eleven researchers including Liu Chaunzhi started their business in a less-than-20-square-meter bungalow of Computing Institute under the Chinese Academy of Science (CAS); up to now, he has created a number of leading companies, including Lenovo, China Digital, Legend Capital, Hony Capital, and several leading figures, such as Yang Yuanqing, Guo Wei, Zhu Linan, Zhao John Huan, etc. He constantly pursues increasingly ambitious goals and develops new business for Legend Holdings Corporation.
New Delhi Times / China is probing the loan practices of a group of big private sector conglomerates who have been on a high-profile global spending spree over the past few years. And although the review targets only a few of the country’s most politically-connected companies, some analysts see an attempt to increase government control over the role played by the private sector in foreign markets.
June 20, 2017
SAIF Master of Finance Program ranked No 1 in Asia
China Daily / This year, 60 business schools from all over the world made the ranking list, including six entrants from Asia. Besides SAIF, other entrants from the Chinese mainland were the Guanghua School of Management at Peking University, the School of Economics and Management at Tsinghua University and the Lingnan College at Sun Yat-sen University (ranked 17th, 18th, and 56th, respectively).
June 19, 2017
More women join financial industry but salaries are not equal
FT / Gender diversity is increasing among graduates working in the financial industry, according to data collected for the 2017 edition of the Financial Times ranking of masters in finance programmes. The proportion of enrolled female students has increased steadily since the ranking began six years ago to 42 per cent among the most recent cohorts. This is low compared with the 48 per cent of female students on masters in management courses but compares favourably with the 35 per cent in MBA programmes.
June 19, 2017
The race to upgrade China's manufacturing
China Daily / In the early 2000s, China's development model was based on low-wage manufacturing combined with high savings and investment rates. The very success of that model in drastically raising living standards has now led the Chinese government to adopt an ambitious set of policies to upgrade China's industry, to escape the so-called middle-income trap and to support a green environment.
June 15, 2017
Business Insight: Why is Chinese ride service Didi sitting on so much cash?
Nikkei Asian Review / Something strange is happening at Didi Chuxing. The Chinese ride service raised $5.5 billion in April, adding to the more than $10 billion it raised last year. Assuming it is no longer burning through $1 billion a year as it did during its fight for Chinese market share with Uber, Didi now has an enormous cash balance for a startup, perhaps as much as $13 billion.
June 13, 2017
Chinese audit regulators get tough
China Accounting Blog / Chinese regulators have banned the Chinese affiliate of BDO from auditing public companies for two months, the second suspension the firm has faced this year. In January, both BDO and Ruihua, the Chinese affiliate of both Crowe Horwath and RSM, were banned for two months. The penalties seem harsh by international standards.
LinkedIn / In Part 1, I argued that there is no new Chinese "sharing economy" - which is why new Chinese businesses like Didi, Mobike, and micro-rentals for basketballs, batteries and umbrellas are kind of confusing. What is really happening is something much more interesting: the emergence of new digital disruptors in access and convenience.
June 13, 2017
There Is No New Chinese “Sharing Economy”. Didi, Mobike, and Others Are Classic Disruptors (Pt 1)
LinkedIn / In the past month, there has been a lot of talk about China’s new “sharing economy”. Articles in the New York Times, Fortune, Bloomberg, and the South China Morning Post have all cited ride-sharing (Didi), bicycle rentals (ofo, Mobike), and the new micro-rental services for batteries, basketballs, and umbrellas as part of a new China “sharing economy”. But this is not really true. The term "sharing" is misleading. And it all misses a much more interesting phenomenon: the emergence of a new type Chinese disruptor.
June 9, 2017
China Daily / Improving information systems in China's traditional industries seen as crucial to upgrading. Countries, like companies, have to change their business models as world circumstances change. In the early 2000s, China's development model was based on low-wage manufacturing combined with high savings and investment rates. The very success of that model in drastically raising living standards has now led the Chinese government to adopt an ambitious set of policies to upgrade China's industry, to escape the so-called middle-income trap and to support a green environment.
June 9, 2017
Why Trump's climate decision may backfire
China Daily / US president's decision can be understood in the context of the nation's politics. On June 2 in the Rose Garden of the White House, US President Donald Trump announced that the United States would leave the Paris climate agreement, struck between 197 countries in December 2015. The decision was greeted with widespread dismay and anger around the world. Even in the US, city mayors and state governors, like Jerry Brown, governor of California, strongly criticized Trump's decision to take the US out of the initiative.
June 6, 2017
Why Didi is raising so much cash
Nikkei Asian Review / Chinese ride service Didi Chuxing raised $5.5 billion in May, adding to more than $10 billion it raised last year. Assuming it is no longer burning through $1 billion a year as it did during its fight for Chinese market share with Uber, Didi now has a staggering cash balance for a startup, perhaps as much as $13 billion.
June 5, 2017
China needs a new breed of companies
Nikkei Asian Review / After nearly 40 years of strong economic growth, many of the factors that led to China's economic rise are no longer working their magic. The once-abundant labor force is aging and increasingly expensive, the forces of globalization are in retreat, credit-fueled investment has resulted in a pile-up of corporate debt and overcapacity is everywhere. The once strong faith in China's long-term prosperity held by entrepreneurs and corporate founders is eroding. The ongoing economic transition poses many challenges for those national champions, many of which are debt-laden and failing to deliver reasonable returns.
June 2, 2017
Building today for a better tomorrow
China Daily / State-owned enterprises, startups expected to help transform new area into an economic success story. Bringing in the right mix of talent will be crucial for the expansion of the Xiongan New Area in North China's Hebei province. Since the area was designated an economic zone, State-owned enterprises, or SOEs, startups and institutions have expressed interest in moving there. "The planned Xiongan New Area is of national significance and needs to bring in first-rate talent to start innovative business and construct the economic zone," said Yuan Tongli, Party chief of the preparatory committee of Xiongan.
May 30, 2017
How I Went From Failed Writer to 1M LinkedIn Followers
LinkedIn / I recently reached 1M followers on LinkedIn. And this is crazy. Because not that long ago, I was nowhere as a writer. For years, I had published books, written articles, and so on - but nothing had really worked. I was a failed writer, despite over five years of effort. Looking back, it is clear to me that it was LinkedIn (and self-publishing books) that made all the difference. So this is a thank you / quasi-love letter to LinkedIn. Well, as much as a grown man should ever write a love letter to a corporation.
May 26, 2017
EU-China summit comes at crucial time
China Daily / Europe hoping to harness some of Belt and Road's bustling energy for its own purposes and gain better access to Chinese market. In 2013, in speeches delivered in Kazakhstan and Indonesia, President Xi Jinping introduced the concept of reviving the ancient routes that linked Europe with China via camel-borne and ship-borne trade. There were many doubters in the West. The project seemed so vast, requiring so much investment and so many countries to sign on and participate, that it seemed unlikely to see the light of day for years to come.
May 25, 2017
Panel discusses sticking points of bilateral trade
China Daily / US-Sino relations, trade between the world's two largest economies, and debt dominated a panel discussion on China, the US and the global economy in New York on Wednesday. Joseph Lake of the Economist Intelligence Unit moderated the discussion at the 2017 Peking University Guanghua New York Forum. Panelists were Hongbin Cai, a professor at Peking University's Guanghua School of Management; David Dollar, a senior fellow at the Washington-based Brookings Institution; and Simon Jin, managing director and president of greater China for S&P Global.
Bloomberg / One of Hong Kong’s most high-profile targets of activist short sellers has hatched an unorthodox plan to fight back. It’s called the “anti-malicious short selling alliance.’’ The idea is for companies to band together when bearish traders pounce, sharing crisis-management advice and in some cases even offering equity investments. Fullshare Holdings Ltd., the property company that unveiled the plan on Monday, has faced allegations from two short sellers in the last month.
May 18, 2017
Murder case highlights property money trail from China to US
FT / A record bail posted in a California court for one of the accused in a murder case has thrown the spotlight on a property fortune that traces its roots to the Chinese military, in a graphic illustration of how money made in China has flooded overseas real estate markets. Tiffany Li is a Chinese-American heiress accused of ordering a hit on her ex-boyfriend in San Mateo county, a leafy suburb of San Francisco where Teslas are more common than violent crime. In April she posted $4m in cash and $62m in California property as bail — among the highest ever posted in the US.
China Looks Overseas for Designers to Build Brands
Bloomberg / When evaporating profit margins prompted China’s Zhejiang Willing Foreign Trading Co. to launch its own brand for yoga wear last year, it spurned homegrown talent and turned to a French freelance designer. "Chinese designers just don’t have good taste for foreign markets," said Zhang Tao, assistant manager at the Hangzhou-based company. "Chinese businesses have been good at manufacturing but now we have to change our mindset. Brands are the future."
May 15, 2017
FT Executive Education Rankings 2017: analysis
FT / IMD and Iese Business Schools have tightened their grip on the top spots of the twin FT executive education rankings, monopolising first and second places for both open-enrolment and customised programmes. Swiss school IMD comes top in the 2017 ranking of open-enrolment courses, available to all working managers. It also jumps two places to second in the ranking of customised programmes, which are tailor-made for corporate customers. Iese of Spain holds on to the top spot in the custom ranking and remains second in the open ranking.
May 14, 2017
3 Forces That Determine Success or Failure in Consumer China
LinkedIn / *The following is an excerpt from the One Hour China Consumer Book, which is available for free this week (available here). "Robert Ravens is an Australian farmer and the creator of the “Bobbie Bear”. He lives on a remote Tasmanian farm and uses excess lavender from his fields to make bright purple teddy bears. The lavender is stuffed into the bears along with some wheat and a heat pack. The fragrant teddy bears can then be heated in a microwave, which apparently makes them nice to sleep with. He mostly sold his Bobbie Bears online and in his farm’s gift shop.
May 12, 2017
Peking University to open medical center in Xiongan
China Daily / Peking University has vowed to fully support the Xiongan New Area, a new economic zone about 100 kilometers southwest of Beijing, including opening a medical center to train high-level professionals. The move was disclosed after Zhao Kezhi, Party chief of Hebei province, and provincial governor Xu Qin held talks with the prestigious university's Party chief Hao Ping.
May 9, 2017
PKU-GSM FC Barcelona Sports Management Center
Youtube / FC Barcelona and PKU Guanghua launch a joint, sports management in China. FCB Chairman, Mr. Bartomeu, and the first team gaol keeper, Ter Stegen, discuss this significant moment.
Apr. 24, 2017
Chinese bike-sharing start-up says it’s now worth more than US$2 billion
CNBC / Chinese bike-sharing startup Ofo now says it is worth more than US$2 billion. CEO Dai Wei, a 26-year-old entrepreneur who named his firm Ofo as the letters look like a bike, revealed that figure in a conversation with CNBC. It’s about double the last reports of the company’s value — which came out less than two months ago. Such a valuation isn’t too shabby for a company that started about two years ago with its founders pooling private savings of 150,000 yuan (US$21,800) to kick things off.
Apr. 18, 2017
No, First Quarter Numbers Don’t Mean Growth Has Bottomed Out
Carnegie Endowment / Anyone reading news reports about the Chinese economy a year ago might have thought the country was on the verge of financial collapse. There seemed at the time plenty of evidence supporting those who expected an economic breakdown: debt was surging at unprecedented rates, regulators were in disarray following a stock market collapse the previous summer, and liquidity panics periodically swept through the banking system. In addition, so much capital was fleeing the country that even a huge current account surplus couldn’t prevent central bank reserves from eventually declining by nearly a quarter from their June 2014 peak.
Mar. 31, 2017
Can China and US build a better world?
China Daily / Information age fosters deep mutual understanding between countries that must cooperate to survive and thrive. The most important relationship in the world? It's China and the United States, both economic superpowers towering above the rest, and whose interdependence led the historian Niall Ferguson to coin the expression "Chimerica".
China's rise to global greatness has been swift enough to surprise the rest of the world, especially the US. However, such a swift rise is not unique. Along with other sudden large-scale disruptions, like France under Napoleon from 1799, or Germany after unification in 1871, these events have created precedents for today's predictions of doom.
Mar. 29, 2017
Guanghua-Kellogg EMBA program leverages mutual strength
China Daily / Three years ago, the Kellogg School of Management at Northwestern University partnered with Peking University's Guanghua School of Management, setting up China's first English-language Executive MBA program. Since then, three cohorts, 101 students have enrolled in the 22-month Guanghua-Kellogg Executive Master of Business Administration program. On March 21, Greg Hanifee, the associate dean of Kellogg's Executive MBA Global Network visited the Guanghua School of Management.
Guanghua-Kellogg EMBA program leverages mutual strength
Ecns.cn / Three years ago, the Kellogg School of Management at Northwestern University partnered with Peking University's Guanghua School of Management, setting up China's first English-language Executive MBA program.
Since then, three cohorts, 101 students have enrolled in the 22-month Guanghua-Kellogg Executive Master of Business Administration program. On March 21, Greg Hanifee, the associate dean of Kellogg's Executive MBA Global Network visited the Guanghua School of Management.
Mar. 27, 2017
3 Ways President Xi and King Salman Can Move China and Saudi Arabia Beyond Oil
LinkedIn / Earlier this month, Saudi Arabia’s King Salman bin Abdulaziz Al Saud met with Chinese President Xi Jinping in Beijing. Saudi Arabia is now aggressively seeking foreign investment to diversify its economy away from oil. So this meeting in China was arguably the most important of the King’s month long Asia trip.
Mar. 11, 2017
China Accounting Blog / A recent China Supreme Court decision related to Ambow Education’s VIE appears to provide little comfort to investors in VIE structures. I have had a chance to discuss this ruling with some Chinese experts, and provide here a layman’s interpretation while we await a good legal analysis in English. The case was a suit brought by Hunan Changsha Yaxing Company (Yaxing) against Ambpw’s VIE.
Mar. 10, 2017
China Daily / Prospects brighter this year because of wide-ranging changes through which China has shown its resilience. The sense of satisfaction with which the Chinese government delivered its annual work report to the joint meeting in Beijing of the 12th National Committee of the Chinese People's Political Consultative Conference and 12th National People's Congress is understandable.The US financial crash of 2008 and the economic depression that followed it seriously unbalanced the global economic equilibrium. Globally interdependent China, which was deeply affected by the crisis, responded quickly by opening the taps of fiscal stimulus.
Mar. 10, 2017
China Accounting Blog / There has been an important decision in China with respect to the enforceability of VIE contracts. The attached article (in Chinese) explains a decision of China’s Supreme Court upholding the enforceability of Ambow Education’s VIE contracts. I am going to wait for some Chinese lawyers to better explain the rationale of the case, but it seems to rest on the conclusion that the arrangements do not result in impermissible foreign control of restricted industries. That would seem to be contrary to earlier decisions.
Mar. 9, 2017
Nikkei Asia / Two years into Alibaba Group Holding's push into entertainment, its movie arm has a growing pipeline of produced and acquired content. Alibaba Pictures is regularly doing domestic and Hollywood deals for film production, financing and distribution. And it is making unconventional moves in cinema software, online videos, ticketing apps and film crowdfunding.
Mar. 8, 2017
LinkedIn / In February 2017, I chaperoned 20 business students from Peking University to meet Warren Buffett in Omaha. It turned out to be a once-in-a-lifetime trip, an investment pilgrimage of sorts.In 4 articles, I document what happened and what we learned. I have included a lot of detail, especially on the Berkshire companies we visited and on Warren’s comments. So this is a pretty long account. This article is Part 3 (Part 1 is here and Part 2 is here)
Mar. 7, 2017
LinkedIn / In February 2017, I chaperoned 20 business students from Peking University to meet Warren Buffett in Omaha. It turned out to be a once-in-a-lifetime trip, an investment pilgrimage of sorts. In 4 articles, I document what happened and what we learned. I have included a lot of detail, especially on the Berkshire companies we visited and on Warren’s comments. So this is a pretty long account. This article is Part 2 (Part 1 is here).
Mar. 6, 2017
LinkedIn / In February 2017, I chaperoned 20 business students from Peking University to meet Warren Buffett in Omaha. This was the first group from Peking University to ever meet with Mr. Buffett - and only the second school ever from China. It turned out to be a once-in-a-lifetime trip, an investment pilgrimage of sorts.
Mar. 3, 2017
VOA / China is responding to international criticism that it gives favorable treatment to state-owned enterprises (SOEs) while neglecting of the needs of foreign companies, and even foreign markets that buy Chinese goods.Releasing the annual work report, or budgetary proposals, in the National People's Congress (NPC), Chinese Premier Li Keqiang signaled a crackdown on loss-posting "zombie enterprises" among the SOEs, and promised to make life easier for foreign investors.
Mar. 1, 2017
Bloomberg / Donald Trump’s plan to spend big on infrastructure may determine whether the U.S. and China end up slugging it out in a trade war. The link between those seemingly independent variables all comes down to jobs. If a splurge on airports and rail networks boosts employment and growth in the U.S., there’ll be less need to deliver on promises to deal with the China trade issue, said Michael Pettis, professor of finance at the Guanghua School of Management at Peking University in Beijing.
Feb. 28, 2017
China and the History of U.S. Growth Models
Carnegie Endowment / As regular readers know, I have often argued that the Chinese development model is an old one and can trace its roots at least as far back as the American System of the 1820s and 1830s. This system was itself based primarily on the works of the astonishing first U.S. Secretary of the Treasury, Alexander Hamilton. (See especially his three main reports to Congress: his “First Report on The Public Credit” of January 14, 1790; his “Second Report on The Public Credit” of December 13, 1790, and most importantly his brilliant “Report on Manufactures” of December 5, 1791. The “Second Report on The Public Credit” is sometimes also known as the “Report on a National Bank.”)
Feb. 28, 2017
The Wall Street Journal / Asia needs at least $1.5 trillion of roads, bridges and other infrastructure annually between now and 2030 to maintain its growth momentum, a doubling of earlier projections, according to the Asian Development Bank. In a report released Tuesday, the Manila-based development bank said the tab would run even higher if climate change is factored in: Upgrading power plants, transport systems and other facilities would boost regional investment by another $241 billion annually among some 45 Asia and Pacific countries.
Feb. 28, 2017
Forbes / China Yuhua Education, which educates nearly 50,000 students at its network of private schools in China, has become the latest business to benefit from the country's growth in education spending.The company's shares rose by as much as 10.7% from their listing price of HK$2.05 on debut at the Hong Kong Stock Exchange today.