Despite the intensified trade dispute with U.S. this year, China's pharmaceutical market still keeps its door open to the world. In this May, the government has removed the tariff on 28 categories of imported drugs. Chinese Premier Li Keqiang has also advocated for healthcare, medical insurance, and pharmaceutical reforms by expanding the coverage of basic medical insurance and accelerating approvals process to boost sales.
China’s GDP grew by 6.7% in the second quarter of 2018, which is slightly down from 6.8% in the first quarter. The impact of the intensified trade war seems to be modest on GDP growth, as the Chinese economy is no longer export-driven. It is the domestic consumption, which accounts for more than half of its GDP that contributes the majority of China's economic growth.
Private education in China has experienced a rapid growth recently and become a significant segment of the overall education market. Compared to public schools, it is considered as a better quality option for the rising middle-class population, because some public schools admit students based on the proximity of their family home instead of their meritocracy.
China has been benefited from demographic dividend for many years. However, the population of new-born babies decreased by 630,000 in 2017, even after the two-child policy being implemented for a year. Meanwhile, the proportion of the aging population keeps growing. It is estimated that more than a quarter of the population will be over 60-year-old in 2030. The shrinking workforce may drive China into a "middle-income trap" that the country gets old before becoming rich, which may drag down the growth of China's economy.
Since Trump's new tariffs policy on steel and aluminum imports targeted specifically at China, an intensified fight between China and United States has inevitably kicked off. The ever increasing trade deficit from China over the past decades is regarded as a signal of the weakness and economic loss in U.S. And the "Made in China 2025" blueprint, which is aiming to transform China from a labor-intensive economy into advanced manufacturing economy, will certainly accelerate this trade imbalance and will also be considered as a big threat to U.S.
China's overheated housing market in the first-tier cities are recently struggling with a slow-down growth due to the quickly developing rental market and unfavorable government policies such as higher mortgage rates, down-payment requirements, and limits on buying extra houses for investment. Therefore, the hot housing market has now spread from first-tier cities-- Beijing, Shanghai, Shenzhen and Guangzhou to their surrounding city clusters- Beijing-centered Jing-Jin-Ji region (shorthand for Beijing-Tianjin-Hebei), Shanghai centered Yangtze River Delta and Guangzhou-Shenzhen centered Pearl River Delta. These three regional economic hubs now account almost 44% of the housing sales in China.
Chinese white liquor, which is also known as Baijiu has become a must-have product to celebrate Chinese New Year. Price of high-end brands has even hiked ahead of this holiday season. Kweichow Maotai, the most famous Baijiu brand in China has an 18 percent price rise on average, with its flagship product Flying Fairy's recommended retail price increasing from 1,299 RMB ($206) to 1,499 RMB ($237). In stores, these prices have even reached 2,000 RMB ($316).
Didi Chuxing, China's ride-hailing unicorn is about to take Uber’s place as the "most valuable startup". Investors now valued Didi as about $56 billion, which is increasing from $50 billion in April 2017. On the contrary, Uber’s valuation is lowered from roughly $68 billion to $50 billion.
In China, cash is rapidly becoming obsolete. Nowadays Chinese people can go by with only 100 RMB (about $15) in cash for more than one month due to the rise of mobile payment. Whether you want to grab a breakfast at a food truck, hail a taxi, unlock a shared bike, pay for utilities, or reward a busker, mobile payment is always there for you.
China’s and US’s New Energy Vehicles leaders BYD and Tesla have both aspired to disrupt the mass transit industry.Tesla’s CEO Ellon Musk envisions a series of underground roadways that ferry vehicles from and to destinations using electric tracks, whereas BYD’s CEO Chuanfu Wang turns his eyes onto the sky. His innovation is to construct an elevated monorail system called Skyrail in cities of China and all over the world.
The government's favorable policies plus the strong consumer demand will usher Chinese rental market into a new high growth era. The market size will rapidly grow in the next few years, thus attracts technology companies like Alibaba, JD, and China UnionPay to participate in this new wave of industry development.
Apple’s iPhone X with the full-display using organic light-emitting diode (OLED) technology is coming soon. The OLED screen, which is physically flexible with a fast response, wide visual angle and high contrast, is one of the top selling points for this 10-year anniversary smartphone. However, Chinese customers are no strangers to OLED screen due to the OLED adoption on Huawei, OPPO, Xiaomi, Vivo and other local brand smartphones from 2014.
China’s equity markets, the second largest in the world, have long confounded Western investors. The strategies that work in the US market may not be effective in the Chinese market, which is dominated by retail investors. However, patterns exist if you know where to look.
Chinese internet behemoth Tencent announces 70% surge in profit in its latest quarterly report, buoyed by revenue from its mobile game “Honor of Kings”. Here is why.
When millions of shared-bikes flooded major cities in China, billions of investments flowed in. In June and July, China’s two largest “Uber for bikes” companies Mobike and Ofo have respectively raised $600 million and $700 million during their latest round financing.
Tesla, the pioneer of new energy vehicle industry has launched its Model 3 in July. Coincidentally, China's new energy vehicle industry rebounded in June after months of sluggish growth. The output of vehicles increased by 44% and the sales by 34% YoY.
On June 1st, the U.S. president Donald Trump decided to pull out from Paris Accord, while China vowed to push forward. Will China take the lead role in climate change in the future? A question mark remains in people’s mind.
The Chinese express delivery business increased 30 times over the past decade thanks to the booming of e-commerce industry. Here is why.
On March 27, 2017, American Airlines has bought $200 million stake in China Southern Airlines, the largest Chinese state-owned airline company. This is not the first time a U.S. airline company seeks a foothold in the Chinese airline market.
In recent years, China's capital market has witnessed rise of investor activism. Last year, the battle between Vanke, the largest real estate developer, and activists led by Conglomerate Baoneng Group attracted great attention from investment community.
The shipping industry will see an improved operating environment in 2017 driven by growth in shipping demand this year and further market consolidation following the bankruptcy of Korean giant Hanjin Shipping, said market watchers.
Auto has been a high growth industry in China for years along with China‘s GDP. But now, the GDP growth starts to slow down and investors may have a question: can the auto industry, with around 100 listed companies in China, sustain such high growth in the future?
n China, the trend of backdoor listings is expected to accelerate due to delay of the registration-based IPO system and high threshold of IPO filings. During the last five years, more firms took advantage of backdoor listing as a shortcut to go public.
Years ago, people predicted that the bubble of Chinese housing market would burst and start collapse from first-tier cities, Beijing, Shanghai, Shenzhen, Guangzhou, which are the most populated and most economically important metropolitans. But unexpectedly, housing markets of the first-tier cities have heated up recently. However, in most of second-tier cities of China, such as provincial capitals, as well as third-tier cities, the housing markets did not change much and even cooled down in some areas.