19 posts categorized "China's Economy" Feed

The successful IPOs of Chinese ecommerce companies VIPSHOP (ticker VIPS), Jumei International (ticker JMEI), Jingdong (ticker JD) and the much-anticipated IPO of Alibaba in the near future, have one thing in common, ecommerce. Stock Performance of VIPS Stock Performance of JMEI Stock Performance of JD These companies have benefited from Chinese consumers’ embrace of online shopping, which has been a result of fast-growing disposable income per capita in China. Urban Household Per Capita Disposable Income Retail Sales* Internet Sales 2008 2545 1 trillion 2012 3962 1.58 trillion 213 billion 2016 2.46 trillion (E) 611 billion (E) Currency = USD * Excluding motor vehicles, fuel, and the sales of products that could be characterized primarily as the provision of a service, such as meals in restaurants. Online retail sales in the U.S. was $225.5 billion in 2012 and will grow to $384 billion, according to eMarketer. China surpassed the U.S. in the online retail sales by 2013; however, China's online retail penetration of Internet users was 42.9% in 2012, compared to 71.6% in the United States. iResearch expects that China's online retail penetration may increase to 53.7% by 2016. What do Chinese consumers like to shop online? Consumption of apparels and... Read more →


China in the Past 10 Years - its GDP, Export and Population

China's 18th National Congress Meeting of the Communist Party of China brings China to a critial turning point. It will elect the once-a-decade new leadership and lay out the plan for the next 10 years under the new leadership. The past ten years have seen China grown into the second larget economy in the world after the U.S. Its GDP per capita was close to $6,000 by 2011, an increase from $1,500 in 2002. GDP percentage change year on year ranges between 6%+ to 15%, with 2009 the lowest. The export of goods approached $2,000 billion in 2011, compared with $300 billion in 2002. By 2011, China's urban population surpassed its rural population, a result of its progress in industralization. Download China in the last 10 years – graphic of the day _ The Knowledge Effect What are waiting for the China by the end of the next 10 years? If the past 10 years were a time when China devoted all its resources to grow its GDP, the next 10 years will be more challenging in the sense that the government has to fix some of the problems accumulated from the last 10 years, which are far from easy... Read more →


Change of Landscape of Foreign Direct Investment (FDI) in China

According to the Economist Intelligence Unit's most recent research, China is witnessing a shift of its foreign direct investment (FDI) landscape. The obvisous trends are first of all, FDI is moving towards service sectors and meanwhile away from manufacturing; second, with the coastal market getting crowded and saturated FDI is looking into the inland for cheaper labor and faster-growing markets. While some FDI may decide to choose countries such as Vietnam, where labor costs are lower than China's coastal regions, majority of them will still find China attractive for the opportunities its less developed inlands may offer, and most important, the significant potential of the comsumption the domestic market has displaying with increasing disposal income. Download China FDI _ EIU Read more →