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Welcome to the latest collection of articles and reports
by the consultants of McKinsey Greater China office on the
trends and issues shaping business in China today. | Foreign players invited aboard railway express |  | South China Morning Post February 02, 2009 The Ministry of Railways will spend an estimated 3 trillion yuan (HK$3.4 trillion) to expand and upgrade its rail network over the next five years. While much of this funding will come from the government or through debt, China will still need up to 1 trillion yuan from private and foreign sources to ensure that projects stay on schedule. The country will increasingly need to turn to these sources to fill the gap, opening up enormous opportunities for them as well as for rail equipment and systems makers. | |
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| Services openings not being fully tapped |  | South China Morning Post January 19, 2009 In its bid to shift the economy from manufacturing to services, China has in recent years tried to position itself as a destination for offshoring and outsourcing. The global market for such services is expected to exceed US$160 billion by 2012, up from US$60 billion in 2007. Yet today, China still holds less than 10 percent of this market. Subscale companies, shortages of project managers, and the lack of an outsourcing culture among domestic firms are just a few of the barriers holding back the sector.
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| Profiting from innovation, energy productivity |  | China Daily November 10, 2008 While China has put in place a substantive policy framework designed to boost energy efficiency, research by the McKinsey Global Institute (MGI), McKinsey's economics research arm, shows that China could capture an even greater prize through an economy-wide effort to boost energy productivity—the level of output achieved from the energy consumed. | |
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| Corporate centers key to unlocking value |  | South China Morning Post October 13, 2008 Without more active management of the portfolio firms, most conglomerates end up with a business mix that is the result of past decisions rather than a strategic choice that makes sense for long-term success.
There are a number of initiatives that Asia's conglomerates can take to maximize the value of the group. | |
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| Seven ways China might surprise us in 2009 |  | The McKinsey Quarterly October 2008 The country could yet again change the way the world sees it. Here’s a short list of realistic possibilities. | |
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| Keeping it in the family |  | South China Morning Post September 20, 2008 With a clearly defined strategy, Hong Kong's family-owned businesses have a greater chance of successfully passing their legacy from one generation to the next and of avoiding the damaging disputes and poor performance that can plague such companies. | |
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| Global investment strategies for China's financial institutions |  | The McKinsey Quarterly June 2008 Chinese financial institutions are flush with money at an opportune moment. They should resist the urge to build empires and instead focus on advancing their skills and global experience. | |
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| Technology firms face new ballgame overseas |  | South China Morning Post July 21, 2008 A strong domestic position, capable talent management, and a detailed understanding of target markets are elements of a thoughtful globalization strategy. | |
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| Winning the hearts of mainland consumers |  | South China Morning Post January 28, 2008 A seismic shift in mainland consumer preferences is changing the way foreign and local companies do battle. | |
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| Growing pains |  | Wall Street Journal Asia April 15, 2008 China's dramatic economic growth is now presenting a new challenge: urban policy. | |
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| Marketing to China's new traditionalists |  | April 4, 2008 As Chinese consumers grow wealthier, winning their hearts and minds is becoming more challenging for foreign companies. | |
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| China's potential awaits drugmakers |  | February 25, 2008 While some multinational pharmaceutical firms are projecting near-term revenue growth of more than 30 percent a year in China, none has yet captured the market's full potential. | |
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| Global tech players must rethink China strategy |  | China Daily August 15, 2007 Many multinational high-tech firms in China are facing stagnation or even declining market share as Chinese competitors secure the emerging midrange market for high-tech goods. | |
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| The Consumer Trap: Retailers Need to Adapt to Entice Fickle Chinese Shoppers into Their Stores |  | South China Morning Post May 12, 2007 Consumer goods companies and retailers need to better understand not just what Chinese consumers buy and why they buy, but how they shop and how to get them to spend money in their stores. | |
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| $ilver Screen: Investors Are Queuing Up for a Slice of the Mainland Cinema Market, but They Face Many Hurdles |  | South China Morning Post May 12, 2007 Despite staggering growth in the mainland cinema market, uncertainty lingers over the enthusiasm of Chinese consumers. | |
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| Rush for Stakes in Banks Is Leaving Assumptions Untested |  | The Financial Times May 8, 2007 If they hope to extract value from their investments in Chinese banks, foreign investors will need to adopt innovative approaches that give them greater influence in the areas that matter most. | |
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| Upwardly Mobile China's SMS Network Could Help Unleash a Shopping Revolution in Rural Areas |  | South China Morning Post March 31, 2007 China's existing mobile short message service (SMS) network could be quickly and cheaply deployed to provide a mobile payment system in rural areas. | |
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| Global tech players must rethink China strategy |  | August 15, 2007 Many multinational high-tech firms in China are facing stagnation or even declining market share as Chinese competitors secure the emerging mid-range market for high-tech goods. | |
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| The New Playground for Private Equity |  | South China Morning Post December 11, 2006 Private equity firms are looking beyond the traditional markets of mainland China, South Korea and Japan for deals. Their attention is turning to Taiwan. | |
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| From 'Made in China' to 'Sold in China': The Rise of the Chinese Urban Consumer |  | McKinsey Global Institute November, 2006 Over the next two decades China is expected to transition from an investment-led, to more of a consumption-led, economy. MGI research finds that as this rebalancing occurs, a massive middle class will emerge. | |
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| Politics and the Quest for Profit |  | Financial Times September 27, 2006 By better understanding the Communist Party's role in board governance, foreign companies can deal with SOEs more effectively. | |
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| The Great Electronics Wars |  | South China Morning Post September 1, 2006 Consumer electronics players should focus on forming strategic partnerships with electronics retail giants or risk losing the battle for mainland consumers. | |
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| Developing China's Nonprofit Sector |  | The McKinsey Quarterly August 2006 Corporations, the Chinese government, and nonprofits themselves all have important roles to play. | |
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| The Birth of a Giant Market |  | South China Morning Post July 5, 2006 To serve China's emerging middle class consumers, companies need to understand how saving and spending patterns will change as incomes grow. | |
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| The Need for Reform Along the New Silk Road |  | Financial Times July 4, 2006 Reforming capital markets and corporate governance in Asia and the Middle East is vital to facilitate investment between the two regions. | |
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| Helping China's Companies Master Global M&A |  | South China Morning Post June 27, 2006 As they go global, their hardest challenge is to integrate the management of their domestic and foreign businesses. | |
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| Middle Market Kingdom |  | Wall Street Journal Asia June 27, 2006 Instead of squeezing themselves into the thin, high end of the high-tech market in China, multinationals would do better to focus on the faster-growing mid-range market segment. | |
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