The Executive MBA Program (EMBA) at Cheung Kong Graduate School recently held a public lecture in Shenzhen attended by entrepreneurs and alumni, who listened to Dr. Ou-yang Hui, Professor of Finance and Associate Dean of the EMBA Program, and Tang Qi, Vice President of Shenzhen Credit Guarantee Group, share their thoughts on China’s economy and the role of small and medium-sized enterprises (SMEs). Shenzhen Credit Guarantee Group is one of China’s largest credit guarantee companies, which provides loans to SMEs.
Professor Ou-yang Hui began by saying, “In an increasingly complex geopolitical environment, economic power is the decisive factor for China to showcase itself on the international stage.”
He emphasised the importance of SMEs: “They are the foundation of China’s economy – SMEs contribute to more than 50% of China’s tax revenue, 60% of GDP, 70% of technological innovation and 80% of employment. On September 2, 2021, the Beijing Stock Exchange became China’s third independent stock exchange with the purpose of serving SMEs. In an era of equity financing, more SMEs should go public and make the most of the opportunities that domestic stock exchanges bring.”
He also discussed China’s remarkable economic performance after 40 years of reform. With data he compiled from the National Bureau of Statistics, he explained that in the last 40 years, China’s GDP has increased exponentially, from USD $0.19 trillion in 1980 to USD $17.73 trillion in 2021. Its GDP has reached 75% of the United States. No other country has managed to surpass the 70% benchmark before.
However, he urged that one of China’s most important goals is to increase its GDP per capita: “Although China’s economy is the world’s second largest, in terms of GDP per capita it still falls behind many developed countries – it is only equivalent to 16% of that of the United States.
Professor Ou-yang Hui continued explain that to continue China’s long-term stable economic development it needs to learn lessons from Japan in order to avoid the problems which stagnated its economy for decades. Finally, he highlighted that China’s needs to solve its problem of many highly leveraged companies with levels of debt that exceed the global average.
CKGSB’s EMBA program reflects the school’s innovative “top of the pyramid” approach to education. The two-year part-time program prepares top business leaders in China to meet future professional and personal challenges, while offering global insights and networks. 80% of the program’s 9,600+ alumni are at the Vice-President level or above at China’s largest private, state-owned and multinational companies.
Established in Beijing in November 2002, CKGSB aims to cultivate transformative business leaders with a global vision, a humanistic spirit, a strong sense of social responsibility and an innovative mind-set. Funded with generous support from the Li Ka Shing Foundation, CKGSB is China’s first faculty-governed, independent and private business school. As a globally oriented business school, CKGSB has been positioning itself as the educational body for Asia Pacific.