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

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

Interest Rate Hike and the Risks of a Hard Landing in the US

By Li Haitao, Dean’s Distinguished Chair, Professor of Finance and Associate Dean, Cheung Kong Graduate School of Business Inflation has become a global problem. In May, the US’s year-on-year (YoY) CPI was 8.6% whereas its Core Personal Consumption Expenditure (PCE) Price Index was 4.9% on a YoY basis, both recorded at the highest level in the past four decades. The Euro zone and …

Tag: interest rate, inflation, US economy

How Education in China should Develop in the Future

LIU Jing, Professor of Accounting and Finance, Director of Investment Research Center ZU Yiming, Research Fellow at CKGSB To understand how education will develop in the future, we have to analyze government policy and structure by examining the impact of industrial policy and economic development on education. Learning from Germany’s Dual Education System Industrial upgrading is …

Tag: higher education, vocational education, China, Germany

Monthly Index on Private Businesses Shows that Business Owners in China are More Pessimistic Than Ever Before

Commentary on the May 2022 CKGSB Business Conditions Index Professor Li Wei Following on from April’s dismal data, the CKGSB Business Conditions Index (BCI) fell from 40.8 to 37.34 this month, which is well below the confidence line of 50.0 (Figure 1). In the last two months, the BCI dropped by 14 percentage points. This indicates that …

After Five Years of China-US Trade Frictions, How Are Companies Dealing with Uncertainty?

Tao Zhigang, Professor of Strategy and Economics, Cheung Kong Graduate School of Business In February this year (2022), U.S inflation hit a 40-year high. According to data from the U.S. Bureau of Labor Statistics, the consumer price index (CPI) has risen 7.95% year-on-year (2022) and 0.8% month-on-month (February 2022). Since the Federal Reserve’s March meeting, …

The Russia-Ukraine Conflict is a Threat to China’s National Interests

By Li Wei, Professor of Economics at Cheung Kong Graduate School of Business The conflict between Russia and Ukraine has been ongoing since February 24. When the conflict first broke out, a swift Russian victory was widely considered a foregone conclusion. However, the war has gone on for months with no peace deal in sight. …

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