McKinsey report on China Flashcards
What is the expected growth rate for online B2C sales in China from 2010 to 2015?
Business-to-consumer online sales in China are expected to grow by 45 percent a year from 2010 to 2015. For product makers, this means smaller and smaller lot sizes and deliveries to households farther and farther “out there.
How much more does the Chinese private sector earns ROA compared to SOES?
Three times. 12%VS4%
How many percent of labour productivity of OECD countries does China do in average?
Labor productivity is 15 to 30 percent of the average in countries that are part of the Organisation for Economic Co-operation and Development (OECD).
How many affluent households with annual income at least 21000 USD are there in China now?
There are now 116 million middle-class and affluent households (with annual disposable income of at least $21,000 per year)
What is the estimated nonperforming loan ratio in 2015? What are the official numbers?
We estimate that the nonperforming-loan ratio in 2015 was already at about 7 percent, well above the reported 1.7 percent.
What may the estimated nonperforming loan ratio may get to if Chinese firms will not improve productivity?
the nonperforming-loan ratio could rise to 15 percent.
What is the percent of employees employed by SOES today? What was it in 1990s?
State owned enterprises employed 60 percent of Chinese workers in the 1990s, but that has dropped to 15 percent in 2015.
What are the five major opportunities to raise productivity in the period to 2030?
(1) unleashing more than $6 trillion (39 trillion renminbi) in consumption
(2) enabling new business processes through digitization;
(3) moving up the value chain through innovation,
(4) improving business operations through lean techniques and higher energy efficiency,
How much did China service sector grew in 2015?
In 2015, the services sector grew by 8.3 percent, 2.3 percentage points faster than manufacturing
How much did retail and online sales sector grew in 2015?
Retail sales are growing by about 10 percent per year, and online sales are growing by 30 to 40 percent
What is China share in global footwear export?
China’s share of global exports of footwear has fallen from 52 percent to 46 percent since 2010
What is the share of income going to the top fifth of the population?
The share of income going to the top fifth of the population rose from 33 percent in 1995 to 43 percent in 2012
How did the average return on invested capital change from 2004 to 2014?
Average returns on invested capital for a sample of more than 3,000 companies fell from 10.3 percent to 2004 to 7.4 percent in 2014
What is the ROI in steel and cement sectors?
In the steel and cement sectors, more than half of publicly listed companies are estimated to generate returns below their cost of capital
What is ROI of Chinese R&D-intensive companies compared to that of similar US firms?
Returns on invested capital in R&D-intensive manufacturing such as autos, semiconductors, and pharmaceuticals are 8.5 percent in China compared with 16.5 percent in the United States.
How much economic profit in China is generated by financial sector?
more than 80 percent of the economic profit generated in China—a measure that takes into account the cost of capital—comes from the financial sector
What is the size of shadow-banking in China? What is its share of total lending?
Shadow-banking assets have grown to about 45 trillion renminbi ($6.6 trillion) and now represent about 20 percent of total lending.
What is China government debt compared to the size of its GDP?
It is 50%
US - 80%-90%
Japan-240%
What is agriculture’s share of GDP in China? How will it change by 2030?
Agriculture, whose share of GDP has fallen by 50 % since 2000, could decline to 4 percent by 2030, closer to the 1 to 2 percent of GDP typical in advanced economies.
How much did Chinese travelers spent in 2015 abroad?
Chinese travelers spent $102 billion (660 billion renminbi) in 2015 on the purchase of goods
How did sales of new categories of consumer electronic goods change compare to the sector in general?
at annual rates of more than 50 percent over the past five years compared with growth in the sector overall of a more modest 14 percent
How many Chinese workers changed their jobs in past 6 month? How does it compare to US and Germany?
28 percent of Chinese workers said that they had changed jobs in the past six months, compared with 18 percent in the United States, 10 percent in Germany
What is the market share of Chinese companies in global branded drug market?
Chinese companies have less than 3 percent of the global branded drug market
How many robots per 10 000 manufacturing robots does China have? How does it compare to South Korea?
While China is the largest purchaser of robots in the world, there are still only 36 robots per 10,000 manufacturing workers, about half the global figure, and less than one-tenth the level in South Korea, for instance.
How much is the average overseas revenue for Chinese companies compare to non-Chinese multinationals?
The overseas revenue of the top five Chinese companies
is less than 10 percent of total sales, compared with 30 to 70 percent in the case of non-Chinese
multinationals.
How to increase consumption in China?
- Sell up (premiumization)
2. Improve social insurance
How to digitalize China?
Develop electric vehicles with integrated media
Create supply chain schedule platforms
Use digital tech to improve quality of talent
How to move up the value chain in China?
Spend more on R&D as % of sales
Increase amount of research
Do M&A
What was the % of North American deals in Chinese outbound investment transactions in 2011-2015? Did it change?
North American deals accounted for 17 percent of transactions in 2006–2010 and rose to 25 percent in 2011–2015.
What competences will Chinese companies have to develop about their M&A management capabilities?
Chinese companies will need to build M&A management capabilities such as due diligence and post-merger integration while developing a system to manage global organization, marketing, and production.
What is the average GDP Per Capita in cities like Shenzhen, Guangzhou, Suzhou?
Over 30 000 USD p.a.
How many university graduates did China produce in 2015? How did it change compare to 2000?
In 2015 the number of university graduates in China was 7 million. In 2000 it was less than one million
How many electric vehicles did China sell in 2015? How did it change from 2014?
247 000 vehicles. 4 times more than in 2014.
How many people leave in rural areas of China?
690 million
What is the Ginny index in modern China? What was it in 1980?
Today it is 0.46. In 1980 it was about 0.3 (similar to modern Denmark)
How much China’s wealth is controlled by 1% of the rechiest families?
About 30%
How much money did Chinese inverstors lose due to financial fraud in 2015?
20 billion USD
What was the property price growth in Shanghai in 2015?
20%
What is the aggregate debt of local governments in China?
25 trillion RMB (about the size of Germany GDP)
How did per capita income in China grow from 1987?
It grew by 13 times, (the average world grew less than three times)
How many people left the povertry because of the China economic growth?
more than 700 million
