Chinese Economics Thread

[Blackstone]

China is a gold mine for innovation, says head of Chinese robot firm

Please, Log in or Register to view URLs content!

So, the CEO of a robotics company extols virtues, accomplishment, and opportunities for innovations in his company and in the wider industry. How's that different than in US, Japan, Taiwan, and Israel?

 

[Equation]

So, the CEO of a robotics company extols virtues, accomplishment, and opportunities for innovations in his company and in the wider industry. How's that different than in US, Japan, Taiwan, and Israel?

The size of China alone could change the world as it did before with innovations.

 

[Equation]

The World's Top 10 Banks
By

Please, Log in or Register to view URLs content!

| Updated April 25, 2017 — 11:43 AM EDT
International banks continue to grow their assets as the world economy expands. If no major economy falters, the expansion may continue. While there is some debate whether

Please, Log in or Register to view URLs content!

, there is no questioning which nation is home to the largest banks. The power in banking is unquestionably shifting eastward to China. Out of the top 10 largest banks by assets, only two are American banks. They rank number six and nine. The leading banks by far are Chinese banks. China holds the top four slots in the top 10.

Japan and France are also represented, and England has the No. 5 bank. In short, only five countries are represented on the list of top 10 banks in the world. This concentration of financial activity does not necessarily represent a concentration of wealth. All of the banks on our top 10 list do international business, so wealth from countries with smaller banks is flowing through the top 10 players. (See also:

Please, Log in or Register to view URLs content!

.)

We have listed the world’s banks from largest to smallest and indicated the dollar value of their

Please, Log in or Register to view URLs content!

. All figures are current as of April 23, 2017.


1. Industrial & Commercial Bank of China
This is the largest bank in the world when measured by assets. It has $3.62 trillion in total assets. The bank’s revenues come in at $134.8 billion. Measured by revenues, this is the fourth largest bank in the world.

Though this is a commercial bank, it is state-owned. The bank provides loans, financing for businesses, credit cards, as well as money management for high-net-worth individuals and companies. The bank also offers money market vehicles, investing opportunities and exchange and transfer services.

A bank spokesman says that President Trump’s insistence that U.S. companies stop manufacturing in Mexico could be an opportunity for the Chinese bank. It plans to invest in Mexico as U.S. firms pull out.

2. China Construction Bank Corp.
This is the second Chinese bank on our top 10 list. It offers corporate banking, which deals with credit, company e-banking, credit lines and commercial loans. The personal banking segment offers personal loans, credit cards, deposits and wealth management for individual investors.

The bank also operates a Treasury sector that deals with money markets, debt securities, and currencies. The China Construction Bank has assets of $2.94 trillion.

On March 29, 2017, the bank announced that its profits have risen by 2.8% during the fourth quarter. The bank expects its profit margins to shrink in 2017, and plans to improve pricing on loans.

3. Agricultural Bank of China
This Beijing bank has branches across China, plus London, Tokyo, New York and Sydney, Australia. Not only is it the third-largest bank on our list, but it is also one of the 10 largest companies in the world. Agricultural Bank of China is state-owned.

The bank deals with small farmers and large agricultural wholesale companies. It also works with non-agricultural companies. Its largest growth segment is mid-sized companies. The bank has assets of $2.82 trillion.

The bank reported a fourth-quarter increase in profits of 1.8%, even though its profit margins have been shrinking. Profits in U.S. dollars was $ $26.7 billion.

4. Bank of China
The Bank of China offers investment banking, insurance and investing services. It also provides personal loans, credit card services, debit cards, mortgages, asset and liability management and insurance. Assets total $2.63 trillion.

In April of 2017, the bank sold bonds denominated in four currencies. The sale took place on one day and resulted in $3 billion in capital for the bank. In its latest profit report, the Bank of China reported a 3.7% drop.

5. HSBC Holdings (

Please, Log in or Register to view URLs content!

Please, Log in or Register to view URLs content!

)
This is a bank based in England. The bank has offices in 80 countries, and has 1,800 locations in the U.K. It provides private banking and consumer finance, along with corporate banking and investment services. HSBC has $2.57 trillion in assets.



6. JPMorgan Chase & Co. (

Please, Log in or Register to view URLs content!

)
This is the first bank on the list that is based in the United States. It is based in New York, but it is a multinational bank.

Though it is ranked sixth-largest in the world, it is the largest bank in the United States. It is involved in investment services, asset management, wealth management and securities. Assets total $2.45 trillion.

As of April 23, 2017, Shepherd Financial Partners has purchased 51,950 shares of JP Morgan stock worth $3,128,000. The analyst consensus for a one-year target price is $91.35 per share. The stock currently trades at $84.52.


7. BNP Paribas
This French bank has assets of $2.4 trillion. It has offices in 75 countries, including the United States. This bank was ranked second among banks in the

Please, Log in or Register to view URLs content!

in 2016.

The analyst consensus on the stock of BNP Paribas is a “buy.” The bank is merging its research teams and expects to cut some analyst jobs in 2017.

The company announced on April 5, 2017 that it had sold its shares in the Dakota Pipeline. The sale was worth $120 million.

8. Mitsubishi UFJ Financial Group
This is a Japanese bank that offers consumer banking, as well as business and private banking. This is also an investment bank. It offers asset management and real estate banking. Mitsubishi UFJ Financial Group has assets worth $2.459 trillion.

Assets for the bank total $2,901.34 billion. State Street Corp. increased its holdings in this bank by 18.6%. This is the second largest public company in Japan. The stock trades at $6.92 as of this writing, Analysts have placed a target price of $7.48 per share. It pays a dividend of 2.63%.

9. Bank of America (

Please, Log in or Register to view URLs content!

)
Bank of America is a U.S. bank that offers services for personal banking, small businesses, mid-sized businesses, and large corporations. It offers investment services in addition to its deposit and checking accounts. The bank has nearly 5,000 retail outlets, with assets topping $2.15 trillion.

The stock currently trades at $22.71 and has a one-year target price of $ 25.63. It pays a dividend of 1.32%. The bank’s revenues have dropped slightly over the past three years. On April 18, 2017, the bank reported a 46% rise in earnings per share.

Bank of America has begun pursuing small businesses and is making more loan money available to them. Its small business program includes putting staff in We Work offices where small businesses operate.

10. Credit Agricole Group
This is the second French bank on the list. It has assets of $1.91 trillion. This bank has a history of working with farmers. It is part of a network of 39 French banks.

The bank raised its holding in the DEO group by 87.6% as of April 20, 2017. It also invested in Coca-Cola (KO), Exxon Mobile (XOM), and Abercrombie and Fitch.

In February of 2017, the company reported it had a 67% drop in its fourth-quarter profits due to mortgage refinancing by its customers. However, revenues rose by 7%. Forbes ranks the company as one of the world’s top 20 most sustainable companies.

The Bottom Line
International banking has created some of the largest businesses in existence. As the world economy moves forward, these banks will be significant players on the world stage.

Please, Log in or Register to view URLs content!

 

[Franklin]

Less than 5% of China's industry is ready for industry 4.0. What is lacking is organisational structure, management talent and mindset for industry 4.0.

Manufacturers in China ‘ill-prepared for Industry 4.0’ says McKinsey report

Despite being the ‘world’s factory’, its manufacturing productivity is still only a quarter of developed countries

Chinese manufacturers are not well prepared to brace for the coming wave of digitalisation to narrow the gap with advanced economies, McKinsey & Company suggest in a report .

McKinsey sent the warning when it launched a Digital Capability Centre at Tsinghua University, the fifth it has set up after ones in the United States, Germany, Italy and Singapore, to facilitate the application of smart production and digital operation to reshape manufacturing.

As the world’s factory, China produced 70 per cent of mobile phones, 80 per cent of air conditioners and 91 per cent of personal computers, but its manufacturing productivity was still only a quarter of developed countries.

Aiming to transfer the country from a manufacturing workshop to a leading innovator, Premier Li Keqiang launched “Made in China 2025” two years ago. It was China’s version of “Industry 4.0” to join the global wave of the fourth major upheaval in modern manufacturing.

“Digitalisation is not just the purchase and installation of expansive, state-of-the-art automation equipment. Organisational structure, management talent and mindset all matter”, said Arthur Wang, partner at McKinsey at a press conference on Friday.

The Chinese are actively engaged in hi-tech R&D, such as 3D printing, big data and VR, but McKinsey noted in the report that most of the players are small start-ups or branches of research agencies, with the market still being dominated by multinationals.

“For most manufacturers in China, Industry 4.0 still seems like a stretch goal,” McKinsey said in the report after talking to 130 Chinese manufacturing executives.

Taking robotics as an example, the report pointed out that China’s robotics, in the absence of sufficient research support, are mainly applied in assembly and system integration that offer lowest profits along the value chain. With customers from low- or middle-end producers such as cosmetics and beverage producers, Chinese robotics is less competitive against global giants such as Fonuc and ABB.

Still, Chinese manufacturers, especially private entrepreneurs, showed great interest and put great hope on the digital operation to improve competitiveness, raise income and reduce costs, McKinsey said in the report.

The report noticed only a limited number of companies are ready to put the Industry 4.0 initiatives into operation.

“Excessive enthusiasm toward Industry 4.0 can lead to irrational investment in equipment and tools, resulting in wasted resources,” the report said.

“Lack of a systematic roadmap and toolbox is consistently cited as a top obstacle to implementing Industry 4.0 among Chinese manufacturers.”

More than half of Chinese manufacturers were “followers” with semi-automation and a sense of data collection but lacking in digital management experience and talent.

Less than 5 per cent of Chinese manufacturers were first movers or pioneers with innovative business models and advanced digitalisation, such as Haier, Lenovo and Huawei, it said.

Therefore, a “one-size-fits-all” solution to digital transformation did not work for China.

Please, Log in or Register to view URLs content!

 

[Blitzo]

Less than 5% of China's industry is ready for industry 4.0. What is lacking is organisational structure, management talent and mindset for industry 4.0.

Please, Log in or Register to view URLs content!

2025 is still quite eight years away for the Made in China 2025 initiative. One only needs to cast their mind back to eight years ago in 2009 to consider how much has changed up to now and how much more can still change in that time going forwards.

We will see how it pans out, and by the early 2020s we will likely have a better gauge of how successful the initiative will be.

 

[Equation]

Less than 5% of China's industry is ready for industry 4.0. What is lacking is organisational structure, management talent and mindset for industry 4.0.

Please, Log in or Register to view URLs content!

I don't get it. First the article trumps that China manufacturing is "not ready for industry 4.0" (whatever that is) and than later on to say "Excessive enthusiasm toward Industry 4.0 can lead to irrational investment in equipment and tools, resulting in wasted resources,” the report said. Do they even what they are talking about?

 

[N00813]

Just something to think about when I read this:
//QUOTE:
Less than 5 per cent of Chinese manufacturers were first movers or pioneers with innovative business models and advanced digitalisation, such as Haier, Lenovo and Huawei, it said.
//ENDQUOTE

By definition, if e.g. ~80% of manufacturers adopted "innovative business models and advanced digitalisation", they wouldn't be "first movers"; they would be the crowd.

I also note that those mentioned 5% -- Haier, Huawei, Lenovo -- are all big multinationals with serious money in their bank accounts to invest; small manufacturers won't blow their first pot of gold on expensive robots, they'd rather make sure their business model is sound and widen their base, before going tall into heavy automation.
Also:

 

[Franklin]

I don't get it. First the article trumps that China manufacturing is "not ready for industry 4.0" (whatever that is) and than later on to say "Excessive enthusiasm toward Industry 4.0 can lead to irrational investment in equipment and tools, resulting in wasted resources,” the report said. Do they even what they are talking about?

The point is that its easy to buy and setup the equipment for industry 4.0. But to get the maximum out of those equipment is the harder part. Its like a car race. If you have money you can buy the best race car. But if your driving skills are not up to par your not going to win any races.

China will get there but it might take longer than expected.

 

[Equation]

The point is that its easy to buy and setup the equipment for industry 4.0. But to get the maximum out of those equipment is the harder part. Its like a car race. If you have money you can buy the best race car. But if your driving skills are not up to par your not going to win any races.

China will get there but it might take longer than expected.

That don't make sense in comparison to China. You need money first in order to buy the supposedly race car, that money can only comes at winning races. Since China has the money due to it's winning races, therefore developing better driving skills than the other drivers. What's the difference with this new car?

This is what I got from the Wikipedia that catches my eyes in regards to the term Industry 4.0:

"Current usage of the term has been criticised as essentially meaningless, in particular on the grounds that technological innovation is continuous and the concept of a "revolution" in technology innovation is based on a lack of knowledge of the details.

Please, Log in or Register to view URLs content!

"

Please, Log in or Register to view URLs content!

 

[B.I.B.]

That don't make sense in comparison to China. You need money first in order to buy the supposedly race car, that money can only comes at winning races. Since China has the money due to it's winning races, therefore developing better driving skills than the other drivers. What's the difference with this new car?

This is what I got from the Wikipedia that catches my eyes in regards to the term Industry 4.0:

"Current usage of the term has been criticised as essentially meaningless, in particular on the grounds that technological innovation is continuous and the concept of a "revolution" in technology innovation is based on a lack of knowledge of the details.

Please, Log in or Register to view URLs content!

"

Please, Log in or Register to view URLs content!

there is various types of car races with formula one being the ultimate competition in status and prize.money however there are many winning drivers in various motor sport codes who fail to transition into formula one.