China Market Research Articles

Endorsement and firm financing: Evidence from government venture capital market in China

This study investigates the effect of government venture capital (GVC) investment on firm financing and its underlying mechanism, utilizing 31,299 firm-year observations from 2008 to 2022 in China. The findings reveal that GVC investment enhances target firms’ equity financing, and it is the "stamp of endorsement" by the GVC investment that enhances equity financing for firms. Through a series of tests, the mechanism for the impact of GVC investment on equity financing is established via increased government subsidies and reduced cost of equity. In addition, firms with higher market awareness about GVC and privately-owned firms benefit more in enhancing their equity financing; this further confirms that financing enhancement originates from the government's role through endorsement mechanism in venture capital investment. The results remain robust after several robustness checks.

Asset Backed Securitization Development Studies --Based on Guojin Railway Construction Chongqing YuSui Expressway Closed Infrastructure Projects

The Asset Backed Securitization (ABS) finance model is a technique of financing that involves the securitization of assets from a project. This model is secured by the projected revenue generated by project assets and a project financing strategy that involves raising funds through issuing bonds in the capital market. The existing ABS financing model, widely used as a project financing mechanism in the global capital market, holds immense importance for both the financial market and economic progress. Furthermore, it has consequently garnered the interest of numerous researchers. This study examines the comparative development of asset-backed securities domestically and internationally, as well as their actual application and implementation in China. This text explores the origins and development processes, characteristics, and advantages of domestic and overseas ABS financing structures. This article utilizes global expertise and real-world examples to present a future outlook for the extensive implementation of ABS in China. It aims to offer valuable insights for China's market development, compliance with financial institution regulations, alignment with market demands, and informed decision-making for relevant stakeholders in the field.

Research on the industry sequence for the expansion of China's carbon market: From the perspectives of stabilizing economic growth and employment

Since the national carbon market in China started trading in 2021, only over 2000 enterprises in the power generation industry have participated in the trading, with a small cumulative trading volume. There is an urgent demand for market expansion. Currently, the Chinese economy is still in the recovery stage, facing significant employment pressure. In order to avoid a large negative impact of the expansion of the Chinese carbon market on the economy, key industries should be systematically included in the national carbon market. We developed a social accounting matrix (SAM) multiplier analysis based on industry grouping and consider two scenarios: first, each key industry reduces CO2 emissions by 1 ton, and second, each key industry reduces CO2 emissions by 1 %. For the first scenario, we calculate the marginal value added and employment impacts of carbon reduction. For the second scenario, the impact of carbon reduction on the elasticity of value added and the elasticity of employment are calculated. Industries with the higher added value and employment losses per unit of carbon reduction should be included later in China's national carbon market. The sorting results of the two scenarios can mutually corroborate each other. Our order of inclusion is different from the market's expectations, and the results are also different from previous relevant studies. On the one hand, we not only calculates the direct economic impact of key industries included in the national carbon market but also calculates the indirect and induced economic impacts. On the other hand, we used a “from the outside to the inside” planning method rather than “from the inside to the outside.” We recommend sequentially including the remaining seven key industries in the national carbon market according to the order in this article.

An Analysis of Wearable Device Design for Pet Cats Based on Emotional Design Theory

With the booming development of the pet market in China, smart devices for pets are becoming increasingly diverse. While wearable smart products for pets, particularly pet cats, have begun to take shape, existing products often overlook the emotional needs between owners and pets while meeting basic pet needs. This paper proposes a design methodology for wearable devices for pet cats based on emotional design theory. By constructing interview outlines and questionnaires, this study delves into pet owners' emotional needs. Analyzing the survey results reveals user expectations for wearable devices for pet cats, providing a basis for subsequent designs. Finally, based on design scheme guidelines, this paper proposes the functional points of wearable devices for pet cats based on emotional design theory.

An Analysis of Wearable Device Design for Pet Cats Based on Emotional Design Theory

With the booming development of the pet market in China, smart devices for pets are becoming increasingly diverse. While wearable smart products for pets, particularly pet cats, have begun to take shape, existing products often overlook the emotional needs between owners and pets while meeting basic pet needs. This paper proposes a design methodology for wearable devices for pet cats based on emotional design theory. By constructing interview outlines and questionnaires, this study delves into pet owners' emotional needs. Analyzing the survey results reveals user expectations for wearable devices for pet cats, providing a basis for subsequent designs. Finally, based on design scheme guidelines, this paper proposes the functional points of wearable devices for pet cats based on emotional design theory.

Analyzing on Luckin Coffee's Success in 2023 Based on the Marketing Mix Theory of 4Vs

The coffee market in China has experienced notable changes due to rapid technological progress and changing consumer preferences. Luckin Coffee has emerged as a leader in this industry. This study aims to evaluate Luckin Coffee's achievements in 2023 using the Marketing Mix Theory of 4Vs as an analytical framework. It will investigate the operational tactics and marketing initiatives that have contributed to the brand's success in China's competitive coffee industry. This paper examines Luckin Coffee's business strategy, product innovation, co-branding initiatives, and dedication to sustainability to reveal how the company has successfully managed rapid expansion while improving the customer experience and operational efficiency. This article demonstrates that Luckin Coffee's strategy emphasis on market distinctiveness, adding value, and establishing brand resonance with consumers has not only led to its impressive expansion but has also established novel benchmarks for retail innovation in the coffee sector. This paper provides a concise overview of the decisions and actions taken by Luckin Coffee in 2023 regarding their variation strategy, value strategy, and vibration strategy. It also offers pertinent recommendations to Luckin Coffee in these three areas, providing valuable insights for both scholars and professionals on how to effectively utilize technology and strategic marketing to attain sustainable growth and establish dominance in the market.

Commercial Chinese polyherbal preparation: current status and future perspectives.

With the modernization of traditional Chinese medicine (TCM) industry, the investment in research and development of new commercial Chinese polyherbal preparations (CCPPs) is increasing, and the varieties of CCPPs are growing. CCPPs play an increasingly important role in the TCM industry. This study has comprehensively summarized and analyzed the current situation of CCPPs that has been on the market in China, and provided suggestions for the research and promotion of CCPPs. This study took the CCPPs approved for marketing in domestic drug database of the National Medical Products Administration (NMPA) as the research object, and combined with the publication of related randomized controlled trials (RCTs) of CCPPs in 2020-2022 and the sales of CCPPs in domestic chain pharmacies, statistical analysis was carried out on the drug name, pharmaceutical companies, dosage form, number of flavors, CBDs, ICD-11 classification of diseases treated, etc. Currently, 58,409 approvals for CCPPs have been issued in China, involving 9,986 varieties of CCPPs, 2,896 pharmaceutical companies and 39 dosage forms. The number of flavors of prescriptions of CCPPs varies from 1 to 90, among which Glycyrrhiza glabra L. [Fabaceae; Glycyrrhizae radix et rhizoma] and Angelica sinensis (Oliv.) Diels [Apiaceae; Angelicae sinensis radix] are the most widely used. The study found that the CCPPs with the most diverse variety is CCPPs for the treatment of respiratory diseases, some CCPPs can treat multiple system diseases. According to the survey, the sales of CCPPs for respiratory diseases in the chain pharmacies account for more than 1/3 of the total sales of the chain pharmacies, while the number of published randomized controlled trials (RCTs) on CCPPs for circulatory diseases was the largest. The approval process of CCPPs should be further standardized, and the transformation of TCM prescriptions into CCPPs should be promoted. In the approval process of CCPPs, it is suggested to strengthen the supervision of drug names to clarify the differences between the CCPPs of same name but different prescriptions. Improve the effectiveness and safety of CCPPs by improving the quality of CBDs. It is suggested to optimize the design of new drug research program of CCPPs to avoid waste of research resources.

Digital Finance, Research and Development Investment, and Corporate Green Technology Innovation

The development of digital finance is anticipated to alleviate the dilemma of corporate green technology innovation. This study selects manufacturing enterprises that are publicly listed on the Shanghai and Shenzhen stock exchanges as well as the Growth Enterprise Market in China, as research samples, of which the data spans from 2011 to 2020. An empirical research using a matched dataset of this period demonstrates that the growth of digital finance has a significantly positive impact on the promotion of green technology innovation in Chinese manufacturing companies. This result remains valid even after conducting rigorous testing to ensure its reliability and taking into account the potential influence of endogeneity. Moreover, this promoting effect exhibits heterogeneity due to differences in enterprise size and property rights. In the future, governments, financial institutions, and enterprises should collaborate to promote the improvement of digital finance infrastructure, bolster policies and financial support for enterprise green technology research and development (R&D) investment, and effectively foster the improvement of corporate green technology innovation capabilities.

Global Equity Markets: An Empirical Study of Return Prediction and Diversification Benefits

My research delves into the equity market trends of China, Japan, and the UK in the post-2000 era. I analyze a dataset of macroeconomic variables from 2000 to 2022 to assess their ability to predict equity market returns. My study reveals that all three nations have seen an upward trajectory in their equity markets, with China's market experiencing the most substantial growth. In addition, I explore how macroeconomic variables affect stock prices and identify the variables that have the most significant impact on equity market returns. Finally, I conclude that a diversified investment strategy in multiple countries stock markets produces higher Sharpe ratios than any single-country investment.

Sustainable entrepreneurship through customer satisfaction and reuse intention of online food delivery applications: insights from China

Advancements in the online food delivery market in China have resulted from the rapid development and popularity of mobile communications and smartphones, which are currently applied by mobile and online application developers to restaurants and food delivery services for high sales revenue and fulfilment of Chinese consumers at home. The current work aims to thoroughly examine the four information quality dimensions (i.e. intrinsic quality, contextual quality, representational quality and accessibility quality), perceived ease of use, perceived usefulness, and perceived convenience and their subsequent implications on user satisfaction and reuse intention of online food delivery applications. By analysing the roles of these factors, we underscore how innovative technology and entrepreneurial strategies can drive customer engagement and satisfaction in the rapidly evolving online food delivery market. The theoretical model proposed in this study was tested through partial least square structural equation modelling (PLS-SEM). Resultantly, intrinsic quality, contextual quality, representational quality, accessibility quality, perceived usefulness, and perceived ease of use showed a positive and statistically significant effect on user satisfaction, whereas contextual, representational, and accessibility quality, perceived usefulness, perceived convenience, and customer satisfaction positively and significantly affected users’ intention to reuse the online food delivery applications. The key determinant of reuse intention was customers’ personal satisfaction. In order to improve the continuous usage intention of online food delivery applications, application developers and the food industry should therefore focus on providing accurate and up-to-date information, which is expected to boost user satisfaction and reuse intentions.

The Moderating Role of Conformity on Purchase Intention of Organic Food: A Conceptual Paper Using Stimulus-Organism-Response Model

This study explores the factors related to Chinese people's decision-making behaviour in purchasing organic food. This study uses the "stimulus-organic-response" (S-O-R) model as the underpinning theory to establish the conceptual framework. The literature review shows that brand image and organic labels are objective stimuli for Chinese organic food consumers. Customer perceived values (functional, emotional, social) are significantly represented as organism, and purchase intention is a response in the S-O-R model. Conformity is proposed as a moderator that affects the relationship between customer perceived values and purchase intention. This study contributes to the existing literature by providing a deeper understanding of organic food purchase intention among consumers in China by applying the S-O-R model and adding conformity as a moderator. It also offers solutions to the Chinese organic food suppliers to increase organic food sales and expand the organic food market in China.

Schengen visa marketing in China: the street-level competition to attract tourists to Europe

ABSTRACT Before COVID-19, visitors from China, were a prime target for the European tourism industries. Yet, their mobility was constrained by the Schengen visa requirement for any trip to a European Union (EU)’s Member States. While the literature on Schengen visa policy has highlighted the repressive practices of street-level bureaucrats processing visa applications abroad, this article seeks to understand how Schengen visa policy is implemented when the objective is to attract potential visitors rather than drive them away. The paper argues that the economic imperative to attract Chinese tourists to Europe is turning local consular cooperation from Schengen into local consular competition. To support this claim and using ethnographic methods as well as a relational approach to implementation, the paper develops the concept of visa marketing to analyse the race to attractiveness between French and Italian consulates based in Beijing, the capital of China. Visa marketing refers to the use of visa procedures (receipt conditions, reliability, processing speed, etc.) by consulates as sales arguments to advertise the destination they represent. In essence, the article presents a case of domestic actors appropriating common visa regimes, engaging in competition to entice foreign consumers to their territories.

The impact of environmental regulation on green TFP：A quasi-natural experiment based on China's carbon emissions trading pilot policy

The carbon emissions trading pilot policy in China serves as a crucial market-oriented regulation tool to achieve green development. This study explores the impact of this policy on Chinese green TFP (GTFP). We utilize the provincial panel data from 2000 to 2017 and employ the GNDDF-Luenberger model to characterize GTFP. The results show that the carbon emissions trading pilot policy significantly improves GTFP. The effects are more pronounced in regions with more foreign direct investment, smaller technological gaps and higher levels of marketization. The carbon emissions trading pilot policy improves GTFP by promoting practical innovation. Furthermore, the promotion of GTFP through the carbon emissions trading pilot policy primarily relies on the enhancement of technological efficiency, rather than technological improvement. Our study provides policy implications for establishing an effective carbon emissions trading market in China.

Impact of COVID-19 pandemic on online consumption share: Evidence from China's mobile payment data

This study investigates the impact of the COVID-19 pandemic on the online retail market in China and explores the mechanisms underlying this relationship. By developing a theoretical model based on utility theory and consumer risk perception theory and utilizing monthly mobile payment consumption data along with the number of people diagnosed with COVID-19 at the city level in 2020, this study finds that the COVID-19 pandemic has driven an increase in the share of online consumption, thereby changing the structure of the retail market. The primary mechanism is that the pandemic boosts e-commerce activity while concurrently reducing the service quality for consumers shopping offline. Furthermore, this study confirms that online consumption has mitigated the negative impact of the pandemic on overall consumption expenditure. Heterogeneity analyses suggest that the COVID-19 pandemic has significantly increased the online share of necessity and upgraded consumption. For city heterogeneity, the effects of the pandemic on online and offline consumption structures are more pronounced in regions with larger consumption scales and lower urbanization rates. Thus, the pandemic has accelerated the development of the online retail market and strengthened consumer inertia for online channels. According to consumer inertia theory, this trend may continue even as the pandemic gradually weakens. The applicability and effectiveness of this study's conclusions and methods provide a new perspective for future research on online retail and e-commerce markets.

Analysis of the reform of the petroleum industry management system and the construction of market mechanisms

With China's reform and opening up, the marketing process of the petroleum industry is still lower than our national economy. Which the market mechanism in the oil industry plays a very important role, at the same time to the national economic development also laid the foundation. Under the background development of globalization, how to improve the oil supply capacity and the enterprise's own competitiveness become the the main research topics and directions, based on this, this paper analyses the management system and market mechanism in the petroleum industry by standing in the petroleum market in China. Laying the foundation for the improvement of the system.

SARIMA Model-Based Monte Carlo Simulation of Option Contract Design for Maize Seasonal Heavy Precipitation in Shenyang

Agricultural production is highly dependent on weather conditions such as temperature, light, water and heat. The huge loss caused by extreme disaster weather makes the global insurance and reinsurance market overwhelmed, and seriously affects the enthusiasm of agricultural investment and the development of agricultural economy. With unique topography and vast territory, China is vulnerable to complex and diverse climate disasters. In recent years, the annual average economic loss caused by extreme weather disasters has reached about 200-300 billion yuan, among which floods caused by extreme heavy rainfall are the main agricultural disasters in China. In order to enhance the "farmer - insurance company - government" interest association to resist the risk of flood disaster caused by extreme heavy rainfall, financial hedging derivatives of weather disaster risk have gradually become a new hedging tool besides traditional insurance and reinsurance. This paper takes Shenyang, the main grain producing area in northeast China, as the sample of the study area, and uses the SARIMA model to obtain the distribution characteristics of seasonal rainfall time series. Different seasonal rainfall index option products (call option and put option contracts) are designed respectively, and the final option pricing is obtained by Monte Carlo stochastic simulation. The seasonal rainfall call option and put option contracts have opened up a new hedging model of agricultural extreme weather catastrophe outside the insurance and reinsurance market, which has enriched the varieties of weather financial derivatives market in China, reduced the severe impact of extreme weather disasters on agriculture, and enhanced the ability of agricultural stakeholders to resist the risk of extreme weather disasters.

Climate policy uncertainty and the Chinese sectoral stock market: A multilayer network analysis

Climate change is the most important challenge currently faced by humans, which affects their health and financial stability. This study proposes a multilayer network that includes return, volatility, and risk layers to investigate the risk connectedness between climate policy uncertainty and the sectoral stock market in China. We explore the static and dynamic topological features of multilayer networks from the perspectives of the system and market levels, respectively. The results indicate that (i) a crisis increases the intensity of risk spillovers; (ii) an obvious nonsynchronous effect was found among the layers during financial turmoil; and (iii) industrials, materials, information technology, and consumer discretionary act more often as net risk transmitters during the sample period, whereas climate policy uncertainty, telecommunication services, and financials are more frequently net risk receivers. The results of this study have important implications for regulators, policymakers, and investors in alleviating climate risk and developing hedging and investment strategies.

Green innovation of heavily polluting enterprises under environmental liability insurance: Evidence from Chinese listed companies

We construct a novel data set of heavily polluting listed companies on the A-share stock market in China that applied for environmental liability insurance in 2014 and 2015. Our study aims to scrutinize the influence and underlying mechanisms of green insurance policies on enterprises' green innovation endeavors. The findings indicate that environmental liability insurance promotes green innovation achievements of enterprises. This positive impact is more pronounced in non-state-owned entities, firms without political affiliations, businesses known for their high information transparency, and locations with well-established legal structures and stringent environmental regulations. Mechanism tests unveil three pathways through which green insurance policies exert this favorable influence: mitigating external financing constraints, promoting environmental management certification, and encouraging environmental information disclosure. This paper provides new evidence for evaluating the role of environmental insurance within developing economies. Furthermore, it carries significant policy implications for promoting ecological civilization and high-quality economic development.

Competitive Textile Exports: A Comparative Study of Pakistan and China in the United States of America Market

The clothing and textile industry is crucial to Pakistan's economy, significantly contributing to GDP and employment. Pakistan, with its strong expertise in cotton manufacturing, faces intense competition from China in the lucrative United States market. This study aims to evaluate Pakistan's textile and clothing exports to the United States and analyze its competitive advantages against China. Utilizing two analytical techniques, the Trade Competitiveness Index and Revealed Comparative Advantage (RCA), this research assesses Pakistan's positioning in the US market relative to China. Secondary data from authoritative sources such as WITS and UN Comtrade, along with scholarly articles, serve as the basis for the analysis. The study focuses on three key textile divisions (SITC 26, SITC 65, and SITC 84) and examines their impact on US imports. Key findings indicate that while Pakistan has demonstrated growth in textile exports, particularly in textile fabrics (SITC 26) and clothing (SITC 84), it still lags behind China in overall export volume and market share. The RCA analysis reveals that Pakistan possesses a comparative advantage in specific textile categories, though China's market dominance remains unchallenged. The research identifies several challenges for Pakistan, including inefficient resource use, energy supply issues, high production costs, and outdated equipment. However, opportunities for improvement lie in enhancing quality standards, compliance with international trade requirements, and strategic policy enhancements. The study provides actionable recommendations to strengthen Pakistan’s competitiveness, such as modernizing production equipment, optimizing resource use, and exploring new markets. The findings of this study are crucial for policymakers, industry stakeholders, and businesses aiming to strengthen Pakistan's textile exports and navigate the highly competitive global textile landscape.

Portfolio Analysis of Multi-Factor Stock Selection Model Based on Investor Sentiment

Since 1990, China's securities market has been gradually improved. Domestic and foreign scholars have proposed many theoretically perfect investment models, but not many of them have been applied in practice because the market cannot satisfy the strict assumption conditions of the models. Foreign quantitative investment models are not necessarily effective in the Chinese market. Based on this, this paper takes the portfolio theory as a guide, uses the scoring method to construct a multi-factor stock selection model, and selects the relevant factors in combination with the characteristics of the Chinese market. Through empirical analyses, the validity of the multi-factor stock selection model with equal weight allocation in China's market is verified. In addition, this paper innovatively constructs an investor sentiment factor, combines the sentiment timing with the multi-factor stock selection model, optimises the timing on the basis of the multi-factor stock selection model, and proposes an investment strategy to obtain excess returns stably.