Celebration of a strong 2016
This Chinese New Year, we celebrate the 15th anniversary of China’s accession to the World Trade Organization. GDP per capita now exceeds US$8,500, up from US$1,200 in 2001, and the World Bank classifies China as a middle-high income society. Morgan Stanley believes China will achieve high-income status by 2027, yet China only ranks as the […]
The crystal ball: Predictions for 2017
From LPs looking for realizations from GPs as well as paper gains, to the factors contributing to more buyout opportunities in China, industry participants give their perspectives on the year to come: BRIAN LIM, PARTNER AT PANTHEON, ON THE LP PERSPECTIVE: Sentiment has been more subdued on Asia. You will see some fundraising noise that […]
November E-Commerce Sales Show Strong Consumer
As we enter the year-end holiday season, the world’s two largest economies will generate tremendous levels of shopping both online and offline, bringing the sheer scale of China’s consumer growth into sharper focus. Double 11 – The online Chinese consumer is as healthy as ever Sales during November’s “Double 11” promotion reached 120.7bn yuan, or […]
Chinese SMEs Positioned for Growth
During our most recent Annual General Meeting, Lunar Capital Partner Robin Song led a group of investors to meet with the Chinese Association of Small-Medium Sized Enterprises (CASME) in Beijing to learn how public and private financing is helping small-medium sized enterprises move up the value chain to become listed enterprises on China’s domestic stock […]
This century’s “baby boomers” are in China
China’s rising consumer middle class, driven by urbanization and rising per capita consumption levels will drive global growth and analysts estimate that the effect could be greater than that of the post-war baby boomers of the west. China’s working class, aged 15-59, is expected to swell by an additional 100 million people in the next […]
Consumption Leading to a More Positive Experience with Family
As China addresses the sustainability of high growth rates and economic rebalancing away from export-and manufacturing-led growth, outlook for domestic consumers continues to grow increasingly positive as disposable incomes rise and unemployment remains low. China’s middle class, now more than 200 million, can afford basic necessities and are pursuing premium products and a well-balanced lifestyle […]
China’s “Post-90s” Treat Consumption Markedly Different than Previous Generations
The largest consumer nation in the world, the U.S., was heavily influenced by the consumption habits of those born in the 50s and 60s – baby boomers. Similarly in China, strong consumption growth is now coming from dynamic spending habits of the post-90s generation (“九零后”). Like the baby boomer generation in the U.S., the post-90s […]
Consumer Brands Are Creatively Communicating Through Modern Media
As China transitions towards consumption, brands are aggressively positioning marketing budgets towards modern media. Across the board, spending on new forms of media increased from 20% of marketing budgets in 2012 to 43% in 2015, and is expected to reach 60% in 2016. Modern media refers to content made available on the internet and mobile […]
China’s New Normal, Business as Usual
Chinese capital markets remain extremely volatile, and while 2016 has been off to a similar start for our businesses as last year, concerns about the reliability of official economic numbers in China, abilities of policymakers, transition to a consumer-led economy and strength of the rising middle class are prevalent. We still believe that China’s New […]
China’s Family Businesses Sell Out to Private Equity
After spending half his lifetime building the family snack food company in the eastern Chinese city of Hangzhou, Yao Weizhong had run out of steam. His 22-year-old son showed little interest in the business, and Yao needed fresh capital and expertise to keep it growing. So Yao, 48, chose a path taken by a growing […]
