BUSINESS >> Insight

Bay areas expected to boom

Chinese Premier Li Keqiang has urged further development of the Guangdong-Hong Kong-Macao Greater Bay Area Initiative highlighted in the 2017 Government Work Report. This reflects the central government's firm support of pushing forward this top-designed and ambitious plan. The initiative, which was first discussed in 2008, now intends to emphasize the region's role in global economic supply chains and is often compared to other bay areas such as those in San Francisco and Tokyo. Some experts have suggested that, after the Guangdong-Hong Kong-Macao Greater Bay Area is established, more bay areas could also be considered in other Chinese regions. However, not every expert specializing in urbanization and city development agrees with the idea.
Source: Global Times | 2017/8/9 17:48:39

Chinese games prosper beyond border

China's game developers, big or small, are busily exploring the overseas markets, not only in developed countries like the US, but also in emerging markets like India. The Global Times recently spoke with several Chinese developers about how they are conquering global markets with Made-in-China games. However, it seems that challenges have also emerged.
Source: Global Times | 2017/8/8 17:48:39

Artificial intelligence embracement

An increasing number of fund management companies have started to leverage artificial intelligence (AI) technology and big data to offer customized services in China. Experts agree that the technology could soon become a trend as it can help fund managers grasp the latest market information and large amounts of user data. But AI may only be used as a supplementary tool in the domestic market and may not hold up as the ultimate decision-maker.
Source: Global Times | 2017/8/7 16:28:39

Illegal fundraising influx

Illegal fundraising cases in China have been on the rise in recent years, partly due to the burgeoning online finance sector. A typical case study is the high-profile traffic-straddling Transit Elevated Bus project also known as “Batie,” developed by online lending company Huayingkailai, which folded in July after unlawfully soliciting 4.8 billion yuan from 40,000 investors. The Global Times spoke with several investors victimized by the scam as well as lawyers to investigate the common tricks employed by financing platforms and areas where governments could strengthen supervision.
Source: Global Times | 2017/8/6 17:23:39

United to exit Hangzhou market

Having only operated a route to Hangzhou, capital of East China's Zhejiang Province, just over a year, United Airlines, one of the US' three main carriers, is set to exit that market in October due to stagnant performance.
Source: Global Times | 2017/8/3 17:43:40

Wanda in big sell-off

Since Dalian Wanda Group announced in late July that it has agreed to sell its cultural and tourism projects and hotel assets, market speculation has emerged over its sustainability and profitability. While some have linked the deal with mounting debts or Chinese regulators' agenda on curbing financial risks, Wanda's chairman Wang Jianlin maintains that the move is a symbol of “light-asset strategy.”
Source: Global Times | 2017/8/2 17:58:39

Third-party payment regulation

Regulators are enhancing their supervision in the third-party online payment business by imposing fines, revoking operation licenses and setting up a centralized clearing platform to build a safety net that would stem out risks in the industry. Experts say such a trend will trim the number of irresponsible service providers and further consolidate the industry.
Source: Global Times | 2017/8/1 18:53:39

Shanghai's traditional department stores re-strategize their customer services to woo all generations amid the Internet era

Following the closure of Shanghai No.1 Department Store in June for refurbishment, another State-owned department store in Shanghai, the Orient Shopping Center, is to close in mid-August for the same reason. The renovation plans aim to modernize the old stores to attract more consumers of different ages. Experts say that the modernization of retail would also need to involve the combination of online and offline businesses to better optimize consumer experiences.
Source: Global Times | 2017/7/31 17:43:39

FDI: The key to strong economy

Foreign and Chinese officials as well as experts and representatives from multinational enterprises gathered in Beijing last Tuesday to discuss the impact of foreign direct investment (FDI) on China's economic growth. Participants said that China has benefited from FDI over the past years because foreign companies can help the nation achieve its development goals and carry out major initiatives. The Chinese government has endeavored to further open up its markets through efforts like introducing national guidelines to aid foreign investment. Foreign capital could also help the construction of the China-proposed Belt and Road initiative, experts noted.
Source: Global Times | 2017/7/30 17:38:39

Burgeoning tourism and trade between China and Russia energize air route cooperation

The aviation ties between China and Russia are strengthening as a result of sped-up cooperation in areas like tourism and trade.
Source: Global Times | 2017/7/27 19:53:39

US goods thrive in Chinese market

More and more Chinese consumers are becoming fans of US products. The growing popularity of US goods in China is in line with the country's economic growth as well as residents' growing incomes, experts say. But experts also note that consumers' passion for US brands will cool down gradually as a result of increasing competition from domestic products.
Source: Global Times | 2017/7/26 17:03:40

China continues investment in overseas port assets, but hasn't reached high tides yet

Chinese companies have been ramping up their efforts in acquiring port assets around the world. Experts say, while not totally trouble-free, investment in port assets could turn out to be a good bargain. Such efforts have also been intensifying the economic relations between China and the countries of the purchased ports.
Source: Global Times | 2017/7/25 17:28:39

China's first lifelong accountability system to prevent local officials from accruing mountainous debt

During the fifth National Financial Work Conference, held from July 14 to 15, China announced for the first time that a lifelong accountability system will be put in place to tackle local governments' debt issues. The measure demonstrates the importance of holding Chinese officials responsible for making bad debt-management decisions, even after their term in office ends. Experts say the new policy could help shift local governments' focus from the mere pursuit of GDP growth to wider concerns such as employment, social growth and environmental protection.
Source: Global Times | 2017/7/24 18:03:40

A robotic future

The “Made in China 2025” strategy unveiled two years ago by the State Council, China's cabinet, is urging domestic manufacturers to upgrade. One crucial part of the strategy is accelerating the automation and deployment of industrial robots. Meanwhile, the continued proliferation of the Internet and smartphone is also boosting the development of service robots. As more and more Chinese factories install industrial robots and tech startups rush into developing diversified service robots, China is now becoming a huge robotics market. Global Times recently traveled to several robot companies in Shanghai and discovered hot trends in the sector as well as its remaining challenges.
Source: Global Times | 2017/7/23 17:08:39

Four giants' traffic booms in H1

The air passenger traffic of major Chinese airlines achieved a robust growth amid the strong demand for travel in the first half of 2017.
Source: Global Times | 2017/7/20 17:38:39

Betting on cashier-less retail

As a result of the advancement in artificial intelligence technology, many companies are pursuing business ventures in cashier-less stores, which feature self-service checkout systems. Despite one optimistic store operator expressing confidence in the emerging business model, experts question its ability to drive profit.
Source: Global Times | 2017/7/19 18:13:39

Govt financial meeting triggers stock overreaction

China's stock market and yuan reacted differently to the conclusion of a two-day financial meeting over the weekend. Experts asserted that the meeting will benefit the market in the long run and that any short-term fluctuations should not cause concern. They also noted that the chance of a sharp depreciation of the yuan is slim, while the internationalization of the Chinese currency will be pushed forward in a stable pace.
Source: Global Times | 2017/7/18 17:28:39

The 'New Retail' Revolution

The concept of “New Retail,” which was created by Jack Ma Yun, Alibaba Group Holding's founder and chairman, in late October, is gaining momentum in the domestic markets. Hema Xiansheng, Alibaba's newly founded online-to-offline platform, is putting the novel retail business model into practice, an effort experts say is changing China's traditional retail sector. Despite its large growth potential, the new retail sector still faces many challenges and uncertainties.
Source: Global Times | 2017/7/17 18:13:39