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Managing the Dragon’s Predictions for 2016

The Year of the Monkey got off to a rocky start in China, demonstrating once again just how much events in China now impact the rest of the world. In 2016’s first day of trading, shares on the Shanghai Stock Exchange (“SSE”) plunged 7 percent, triggering circuit breakers that cut short the day’s trading session. […]

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Managing the Dragon’s 2015 Predictions: How Did We Do?

To begin with, my prediction that: “The year of the goat may go down as the year of the capital markets in China” was certainly on target. Extreme volatility in the country’s stock market during the year rocked Chinese investors and rattled financial markets throughout the world. Meanwhile, a little-known stock exchange based in Beijing […]

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China Needs A Robust Stock Market

Small and medium enterprises (SMEs) are the lifeblood of any economy, whether it is fully developed like those in the United States or Germany, or one that is still emerging like China’s. According to Yijiang Wang, Professor of Economics and Human Resource Management at the Cheung Kong Graduate School of Business in Beijing, SMEs account […]

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2015: An Inflection Point in China Automobiles

The years following China’s accession into the World Trade Organization (WTO) in late 2001 have marked an incredible period of growth in China’s auto industry. When China joined WTO at the beginning of this century, vehicle sales were just over two million units. Fifteen years later, the industry is more than 10 times larger, with […]

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China Begins Another Round Of SOE Reform

Earlier this year, Sinopec Group, China’s top oil refiner, announced the sale of a 29.99 percent interest in its retail sales arm to a group of twenty-five investors for RMB 105 billion ($17 billion). While the equity sale was a first of its kind transaction that raised a substantial amount of capital for one of […]

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Chinese Technology Firms Eye Autos

The global automotive market, which has always been one of the most competitive in the world, is likely to become even more crowded in the years ahead. Although the level of technology required to produce the modern car is considerable, many industry analysts refer to passenger cars as mere “differentiated commodities” because the way in […]

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Q1 2015: A Watershed For China Autos?

Inevitably, price becomes a major factor in every industry in China. The vast numbers of Chinese whose per capita incomes remain well below what is considered to be middle class puts downward pressure on pricing. At the same time, intense competition among a large universe of local and international players eager to gain their fair […]

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China’s M&A Market In Review

China’s M&A Market In Review

Many thanks to the team at PriceWaterhouseCoopers (PwC) for their report, M&A 2014 Review and 2015 Outlook, which provides a comprehensive summary of mergers and acquisition activity in the People’s Republic of China (PRC). The PwC review illustrates why Institutional Investor, the pre-eminent investor magazine, has called Chinese companies “The New Force In Global M&A.” […]

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Tesla Overestimates The China Market

Wanted: Head of China for Tesla, a $25 billion Wall Street darling whose “disruptive technology” provides Chinese auto buyers with an attractive, environmentally friendly product. This position offers the right candidate the opportunity to develop Tesla’s business in the China market, the size of which is expected to rival that of the United States in […]

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Health Care: A Trillion Dollar Industry In The Making

How many times is a trillion dollar industry created? Not very often. After all, a trillion of anything is a very large number. To put it in perspective, only the largest 15 countries in the world had a Gross Domestic Product greater than $1 trillion in 2013. However, no less an authority than McKinsey & […]

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