- China at the crossroads: after so many years of phenomenal economic success, it must now innovate or growth will wither. Where can investors find value?
- New detailed analytical report studies core challenges, as well as emerging investment opportunities and themes for investing profitably.
- How can China continue to push forward against some deep-seated problems, including how to generate globally-competitive innovation, how to sort out land ownership, and how to attract and reward global investment.
China's economy and society have both reached levels of wealth and development that were unimaginable 30 years ago. What comes next? How can China continue to push forward against some deep-seated problems, including how to generate globally-competitive innovation, how to sort out land ownership, and how to attract and reward global investment flows? These issues are examined in detail in the new research study published by China First Capital.
China's economy remains vibrant and fast-evolving. Many of the Fortune 500 success stories of recent years - KFC, P&G, Coca-Cola - are finding it harder and harder to keep winning in the China market. As they lose share, other companies are gaining, both domestic and international. The report looks at this transformation through the vantage point of China First Capital's rather long experience working in China, alongside some talented CEOs in both domestic and global corporations, the incumbents and the disrupters both.
Investing successfully in China, either through the stock market or through M&A, also remains challenging. But, it's worth the strain, the report asserts, since no other country can rival China today in terms of both the number and scale of money-making opportunities.
The new China First Capital report discusses these broad trends, and also examines the following in depth:
- Is China's investment community (PE and VC firms, stock market investors) over-allocating now to mobile services and online shopping?
- An assessment of the serious challenge facing traditional shopping mall operators and retailers mainly because of competition from soon-to-IPO online shopping giant Alibaba (NYSE:BABA).
- A sober analysis of the actual disappointing state of China's high-tech industry.
- How China triumphed over India, and won the battle as the world's best and biggest Emerging Market.
- Why 3M may be the most successful American company in China, but flies so far beneath everyone's radar.
The report's core conclusion is that China has come a long way and in raw terms is certainly the most successful emerging economy of all time. But it needs to become more innovative, and generate more globally important technology breakthroughs, not just copycatting. There's no absence of hype around about how China is poised to become a global technology powerhouse. The report, though, cites China's failure to serially produce an aircraft engine as a concrete, if not often talked-about, reminder of its technology frustrations and limitations.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.