China’s economic growth in 2022 suffered significant setbacks due to the COVID-19 restrictions and a tumultuous global geopolitical environment. In 2023, with the easing of restrictions, there is a great opportunity to revive the economy. But what will drive China’s economic recovery in 2023? What tactics are needed to revitalize China’s corporate sector? And how can the country enhance income and boost consumption? CKGSB’s Professor of Accounting and Finance, Liu Jing, was interviewed by Sohu Finance, to gauge his insights on China’s economic outlook in 2023. 1. What do you think the ..read more

Li Haitao – Dean’s Distinguished Chair, Professor of Finance, Associate Dean for the Business Scholars Program, CKGSB China’s economy is gradually moving away from its old growth model based on foreign exchange earnings, real estate, and infrastructure and gravitating towards a new economic model sustained by consumption and manufacturing. How does China deal with its huge amount of debt? How will local governments prosper in the absence of land finance? How should China approach credit expansion in the post-real estate era? And what will drive China’s economic growth in the future ..read more

By Teng Bingsheng – Professor of Strategic Management, Associate Dean of Executive Education Programs, CKGSB With the domestic pandemic under control, China’s VC market has recovered significantly and seen a major rebound. China’s total domestic VC investments (bar chart on left axis) vs total amount invested in renminbi (line chart on right axis) As seen from the above chart, China’s domestic VC market disclosed a total of 14,629 investment and financing events in 2021, an increase of 41% on 2020. The total financing amount was 1,355 billion yuan, an increase of 58% compared to 202 ..read more

Li Wei – Professor of Economics, Cheung Kong Graduate School of Business This article is translated from the original Chinese published in FT Chinese on September 1, 2022: http://www.ftchinese.com/story/001097158?full=y&archive According to recent reports, due to rising levels of inflation, in the last month the Biden administration has started to consider removing some of the trade barriers on Chinese goods. The reason for this is very simple: China is one of the most important sources for U.S. imports. Due to various reasons, the U.S. imposed various tariffs on Chinese goods during the ..read more

Many indicators point to the inevitability of a recession in the United States, but to what extent is this true? Ou-yang Hui, Deans Distinguished Chair, Professor of Finance, CKGSB Cao Huining, Professor of Finance, CKGSB At the beginning of April 2022, the benchmark 10-year U.S. Treasury note yield briefly rose above the 2-year Treasury note. On July 6, the 2-year, 10-year (2s10s) Treasury spread inverted again. By July 27, after the Federal Reserve raised interest rates by 75 basis points, the 2-year Treasury bond yield closed in at 18 basis points higher the 10-year yield (2.96% vs 2.78 ..read more

Li Haitao, Dean’s Distinguished Chair Professor of Finance, Associate Dean for Business Scholars Program, CKGSB Lin Xi, Research Assistant, CKGSB The recent problem of unfinished buildings in Chinese cities has attracted widespread attention, as any changes in China’s real estate industry affects the country’s economy. Since 2017, China’s real estate investment has been continuing to rise as a percentage of fixed asset investment. In 2021, real estate investment reached RMB 14.8 trillion, accounting for 27% of fixed asset investment, therefore it is a key driver of China’s economic growt ..read more

 Teng Bingsheng, Professor of Strategic Management and Associate Dean at CKGSB, discussed the emerging concept of business ecosystems with Arnoud De Meyer, Professor at Lee Kong Chian School of Business of Singapore Management University, in light of the release of the Chinese translation of his book Ecosystem Edge: Sustaining Competitiveness in the Face of Disruption. Having worked as a business academic and on the boards of some of the world’s largest companies throughout his career, De Meyer provides a unique perspective on ecosystems which he defines as “loosely coupled networks in order ..read more

Dr. Li Haitao – Dean’s Distinguished Chair Professor of Finance at Cheung Kong Graduate School of Business China’s economy is facing many challenges from a number of factors including Federal Reserve interest rate hikes, the Russia-Ukraine war, Covid-19 restrictions, and rising inflation. Can China’s economy make a recovery? What are some of the problems with the way traditional policy has responded to crises like these? And how can China combine short-term and long-term policies to address these problems? In the past six months, China’s economy has suffered from diminishing demand, supp ..read more

Professor Liu Jing – Professor of Accounting and Finance, Director of Investment Research Center, CKGSB What are the structural problems embedded in China’s property sector? Firstly, it is important to look at the supply and demand of land. Approximately 54% of the cost of a new homes come from the land and associated fees. Whether or not a second-hand property increases in value is completely dependent upon the price of the land it sits upon. The building itself is a consumable and will only depreciate over time, therefore high property prices are essentially a result of high land prices. Th ..read more

Professor Liu Jing – Professor of Accounting and Finance, Director of Investment Research Center, CKGSB Since the beginning of 2022, the real estate giant Evergrande has repeatedly reported failed overdue coupon payments. The crisis started in September 2021 when the company first announced it was facing unprecedented difficulties, which in response to the Chinese government had to move in to control the spillover effects. While the Evergrande crisis is directly related to its own internal management problems, the company’s crisis is just the tip of the iceberg: what lies behind it is a liqui ..read more