Commentary on the December 2022 CKGSB Business Conditions Index

When 2022 began, the government set a target of 5.5% GDP, a goal the market agreed was feasible. In fact, it wasn’t hard to find people who found this a conservative number. However, as Covid-19 continued, cities successively locked down to deal with rising cases, sometimes for months on end. Although this staved off the …

The Transition of China’s Economic Model from Real Estate to Consumption and Manufacturing

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 …

China’s Tech-based Unicorn Companies are Popular for Investment

With the domestic pandemic under control, China’s VC market has recovered significantly and seen a major rebound.

Why Easing China Trade Tariffs Will Mitigate Inflation in the United States

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.

Tag: U.S. economy, Trade, Tariffs

How Far is the U.S. From a Recession?

Many indicators point to the inevitability of a recession in the United States, but to what extent is this true?

Tag: U.S. economy, U.S. bond yields, recession

How Changes in Real Estate Will Affect China’s Economy

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 …

How to Build an Ecosystem to Gain a Competitive Edge

 Teng Bingsheng, Professor of Strategic Management and Associate Dean at CKGSB, discusses 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 …

What Problems Does China’s Economy Face After COVID-19 Restrictions?

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 …

Tag: China Real Estate, China Economy, COVID-19, China Infrastructure

Series: China’s Real Estate Problem
1. The “Three Red Lines”

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 …

Tag: China Real Estate, China Housing Crisis, China Property Market

Series: China’s Real Estate Problem
2. The Role of Real Estate Companies

Professor Liu Jing – Professor of Accounting and Finance, Director of Investment Research Center, CKGSB While the “Three Red Lines” policy was an attempt to help overleveraged companies, it was also originally introduced because regulators thought the industry was too profitable – that it was accumulating large amounts of capital and driving up house prices. …

Tag: China Property Market, China Real Estate, China Housing Crisis

Series: China’s Real Estate Problem
3. The Two Bubbles in China’s Property Market

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 …

Tag: China Real Estate, China Housing Crisis, China Property Market

Series: China’s Real Estate Problem
4. Land Finance and Local Government Revenue Structures

By Professor Liu Jing – Professor of Accounting and Finance, Director of Investment Research Center, CKGSB The underlying cause for the housing bubble does not lie in real estate speculation but on the structure of the sector, stemming from the local and central government’s tax-sharing system, as well as the core role that local governments …

Tag: China Real Estate, China Housing Crisis, China Property Market

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