Chinese Market Research Articles

Chinese Consumers' Satisfaction with Online Shopping Platforms

With the rapid development of Internet technology, China's online shopping industry is also expanding rapidly, becoming an important part of global e-commerce. This article investigates Chinese consumers' satisfaction levels with Taobao, Jingdong (JD.com), and Pinduoduo, three of the country's most popular e-commerce sites. The article reviews the historical development of these platforms, their market positioning, and some of the unique spending habits of Chinese consumers. This paper analyzes several key factors that affect consumer satisfaction, including delivery accuracy, price, information quality, payment convenience, and security. The way that these aspects are handled by each platform greatly affects the buying experience of users. Technological innovations on platforms such as Taobao, such as AI-driven recommendations, have dramatically improved user experience and satisfaction. Jingdong has improved its delivery efficiency and customer satisfaction by building its own logistics system, and Pinduoduo's logistics are both slightly inadequate in comparison. However, Jingdong's logistics during peak hours still needs to be improved. The paper also points out that while price is a very important factor for consumers when choosing a platform, Pinduoduo still needs to find a balance between low price and service quality. Lastly, future studies can explore how cross-border e-commerce and the behavioral inclinations of various user groups could impact the platform's subsequent development stage. These findings suggest that continued attention to these factors can provide online shopping platforms with strategies to increase consumer satisfaction and improve service quality, as well as provide new ideas for academic research.

Geographic disparities in bank lending: Evidence from an auto loan market

We investigate geographic biases against nonlocal borrowers in the Chinese auto loan market. Using proprietary loan-level data from a major commercial bank in a regional market, we discover that nonlocal borrowers encounter geographic discrimination, manifested in higher loan rates and shorter loan durations compared to similar local counterparts, even after adjusting for borrowers' risk profiles. This bias is exacerbated by information asymmetries as well as economic and institutional stereotypes. The disparity is particularly pronounced in cases involving elevated loan-to-value (LTV) ratios, higher-value or luxury vehicles, and among male or older borrowers. Our findings shed light on the human biases in lending decisions in the credit market.

Risk Transmission and Hedging Strategies Between Chinese Stock Market and Major Trading Partners Along the Belt and Road in COVID-19 Scenario

This paper focuses on the multi-scale spillover and time-varying dependence of Chinese stock market and its important trading partners along the Belt and Road around the COVID-19 crisis. We use multiple methods - the DY (12) and BK (18) connectedness approaches that investigate dynamic and frequency connectedness; the wavelet coherence and the time-varying CoVaR to examine the connection between price lead lags and systemic risk spillovers. Our empirical results show spillovers to be asymmetric, and short-term spillovers dominating. Meanwhile, the level of spillover in the system increased sharply after the COVID-19. In the medium and long-term frequency domains, wavelet coherence reveals strong co-movement between the Chinese market and its major trading partners. We see that the highest level of systematic risk spillovers occurs at the beginning of the COVID-19 outbreak. Finally, the weighting of the Chinese stock market in the effective portfolio rises after the COVID-19 outbreak.

Investor attention and anomalies: Evidence from the Chinese stock market

This paper investigates how investor attention influences anomalies in the Chinese stock market. Utilizing data from 2011 to 2022, we propose investor attention composite indices using the partial least squares method, combining information from 11 attention proxies. By analyzing the newly proposed index, we explore the impact of investor attention on stock market anomalies. Our results demonstrate that investor attention has a positive effect on concurrent market anomalies, a relationship that remains robust even when considering factors such as the Fama-French three factors and investor sentiment. Further examination utilizing a composite index of investor attention derived from scaled principal component analysis yields similar results. Notably, our research indicates that investor attention significantly impacts anomaly returns in the subsequent month, suggesting potential forecasting capabilities.

Quantile volatility connectedness among themes and sectors: Novel evidence from China

Against the backdrop of increasing interest in factor investing, this paper explores volatility connectedness among theme factors and sector indices in the Chinese stock market using the Diebold-Yilmaz approach with quantile factor VAR. Our static analysis reveals significant similarities at extreme quantiles, contrasting with the conditional median. We find that higher connectedness measures at extreme quantiles correspond to improved performance of portfolios based on sectors and themes. Additionally, dynamic analysis indicates a strong link between total connectedness and closely tied risk events in China. Moreover, variations in connectedness between the right and left tails serve as a market-level risk proxy, significantly influencing the performance of both themes and sectors. These findings underscore the importance of understanding volatility connectedness for devising effective investment strategies and enhancing risk management practices in the Chinese stock market.

Can carbon labels shift consumers towards sustainable food? Evidence from Chinese consumers

Carbon labels are becoming an essential tool for policymakers in many countries to promote low-carbon consumption. To assess customers’ willingness to pay for five carbon-labeled agricultural products (CAP), we used payment card to conduct a questionnaire survey among 641 respondents in Shanghai, Nanjing, Wuhan, and Xi'an, all located in China. This study quantitatively analyzes the influencing factors and interactive mechanisms of the public's willingness to purchase CAP through the extended Theory of Planned Behavior and Norm Activation Model. The results show that consumers' willingness to pay a premium for carbon-labeled milk, corn, bananas, tomatoes, and eggs is 27.50%, 29.73%, 26.86%, 26.51%, and 24.26% respectively. Perceived behavioral control has the strongest positive influence on purchase intention, followed by subjective norms, attitudes toward the behavior, and personal norms. There is a significant mediating effect between awareness of consequences and personal norms, which indirectly influences personal norms through the ascription of responsibility and subsequently affects purchase intention. Additionally, there is a gap between purchase intention and behavior, and risk perception negatively moderates the relationship between the two. Based on the research findings of this paper, practical and effective policy suggestions are proposed for the government to promote carbon labeling policies and reduce carbon emissions.

Is ESG investment rewarded or just doing good? Evidence from China

The question of whether ESG investment is rewarding is a key determinant of its attractiveness to investors. Despite extensive research, a consensus remains elusive. This paper delves into the potential costs and benefits of ESG preferences in the Chinese stock market by constructing three-dimensional portfolios that integrate risk, return, and investor ESG preference. Instead of providing a binary answer of whether ESG investment is rewarding, we offer a glide path of costs to investors for achieving their ESG goals. Furthermore, given the potential market cap bias, we examine the differences in costs between portfolios composed of large-cap and small-cap stocks. Our empirical findings are twofold: first, if investors have a relatively low preference for companies' ESG performance, their investment is as rewarding as those with no ESG preference. However, if they have a high level of preference for ESG performance, their investment may be just doing good. This means that if the level of ESG preference is below a certain threshold, the costs of ESG preference are minimal or even zero. However, when the threshold is crossed, the costs rise sharply. Second, these costs vary significantly between portfolios with different market capitalizations. Specifically, incorporating ESG factors into small-cap portfolios often results in higher financial sacrifices compared to large-cap portfolios. These insights are crucial for investors seeking to balance financial and non-pecuniary objectives, providing guidance for optimizing ESG integration strategies in their investments.

Technology shock of ChatGPT, social attention and firm value: Evidence from China

The release of ChatGPT has attracted widespread attention and triggered fluctuations in the capital market. This study employs difference-in-differences (DID) and event study (ES) to investigate the effects of ChatGPT's release on the cumulative abnormal return (CAR) of listed companies in China. The results reveal that a series of ChatGPT launch events, including GPT-3.5 and GPT-4, have a significantly positive impact on the firm value of the companies focused on ChatGPT, with dynamic effects. In the initial two months after the release of ChatGPT, the Chinese stock market exhibited an undervaluation of GPT-focused companies, indicating information asymmetry and competitive substitution effect. With the widespread promotion of generative AI, social recognition of ChatGPT's potential value increased. This study verifies the moderation effect of social attention in strengthening ChatGPT's impact, demonstrating that a higher search index for ChatGPT enhances stock returns for GPT-focused companies. Heterogeneity tests reveal that the impact of ChatGPT is significantly positive for large or non-state-owned companies, while small or state-owned companies show no significant effect. From the perspective of labor structure, companies dominated by technical and production personnel experience positive effects, whereas those dominated by sales personnel do not. In the eastern regions with more favorable digital economic innovation environments, companies experience a notably positive impact. This paper provides a theoretical explanation and empirical evidence for the microeconomic impact of generative AI in the Chinese context, offering valuable insights for both government and firms.

The real impacts of third-party certification on green bond issuances: Evidence from the Chinese green bond market

This study examines the real effects of third-party certification on green bond issuance by Chinese listed firms over the period 2016–2022. Our findings reveal that the issuance of certified (non-certified) green bonds results in favourable (non-significant or even negative) stock market reactions in both the short and long term, indicating that third-party certification adds value for stock investors. In addition, we analyse the underlying mechanisms that drive the value creation of third-party certification in green bond issuance. We find that third-party certification effectively reduces information asymmetries between firms and investors, induces firms to genuinely prioritise sustainable practices and improves firms' environmental performance, leading to increases in investor demand and firm value. Our further analysis reveals that third-party certification helps green bond issuers attract long-term investors, increases analyst coverage and induces positive opinions from the regulator on firm disclosure. Overall, this study documents that third-party certification of green bond issuers can generate real economic and environmental benefits for issuers.

Risk premium principal components for the Chinese stock market

Risk premium principal components for the Chinese stock market

The Heterogenous causality of repurchases: Analysis from the aspect of share collateralization

We explore the unique heterogeneity feature of the Chinese market to examine the relationship between firms' share collateralization by its largest shareholders and corporate repurchases. Furthermore, we analyze the divergent incentives resulting in different consequences for the performance of private firms and state-owned enterprises (SOEs). The policy effect of an amendment to the Company Law of the People's Republic of China is studied using the difference-in-differences method. The measure is changed to ensure the reliability and robustness of the causality results between collateralization and repurchases. The results show that higher collateralization increases the likelihood of firms' share repurchases. The repurchase incentive of firm performance diverges between private firms and SOEs. Some SOEs even attempt to support the policy and blindly herd to repurchase shares; however, when SOEs are assured of their operational efficiency, repurchases increase their profitability. Private firms use repurchases as a share price stabilizer to protect the interests of their large shareholders rather than to benefit minority and small shareholders. These results provide policy feedback and demonstrate the complexity of controlling for corporate incentives when market interests are highly mixed.

Individual and combined occurrences of the prevalent mycotoxins in commercial feline and canine food.

Mycotoxins, such as aflatoxin B1 (AFB1), deoxynivalenol (DON), fumonisins (FBs), ochratoxin A (OTA), T-2 toxin (T-2), and zearalenone (ZEN), can contaminate animal feeds and pose risks to animal health and production performance. These mycotoxins are commonly found in cereals and grains, with the increased use of cereals in pet food, there is a rising concern about mycotoxin contamination among pet owners. To address this, we analyzed imported brands of feline and canine food from the Chinese market produced in 2021-2022. Ninety-three samples were analyzed, comprising 45 feline food and 48 canine food samples. Among them, 14 were canned food and 79 were dry food. The results indicate that AFB1, DON, FBs, OTA, T-2, and ZEN occurred in 32.26%, 98.92%, 22.58%, 73.12%, 55.91%, and 7.53% of the samples, respectively. The most prevalent mycotoxin was DON, followed by OTA, T-2, AFB1, and FBs, whereas ZEN was less frequently detected. The mean concentrations of the six mycotoxins in pet feed samples were 3.17μg/kg for AFB1, 0.65mg/kg for DON, 2.15mg/kg for FBs, 6.27μg/kg for OTA, 20.00μg/kg for T-2, and 30.00μg/kg for ZEN. The levels of mycotoxins were generally below the limits of the Pet Feed Hygiene Regulations of China and the EU. Notably, a substantial majority of the pet food samples (88 out of 93) were contaminated by two or more mycotoxins. AFB1, FBs, OTA, and ZEN occurred slightly more often in feline food than in canine food. Except for OTA, the contamination rates for the other five mycotoxins in canned food were lower than those in dry food. Moreover, except for AFB1, the levels of the other five mycotoxins in canned foods were lower than those in dry foods. This study highlights the widespread contamination of pet foods with mycotoxins, which poses a significant risk to pets from continuous exposure to multiple mycotoxins.

The Influence of Online Return Service Quality on Customer Satisfaction Among Chinese Consumers: Focusing on the Moderating Effect of Platform Reputation

The Influence of Online Return Service Quality on Customer Satisfaction Among Chinese Consumers: Focusing on the Moderating Effect of Platform Reputation

Factors Impacting Plant-Based Meat Product Consumption: A Consumer Survey Conducted in a New First-Tier City in China.

In recent years, the worldwide plant-based meat sector has undergone substantial and rapid expansion. The swift advancement of plant-based meat products in the Chinese market is ascribed to changes in customer dietary preferences. To accelerate the rapid expansion of China's plant-based meat sector, it is essential to conduct research on consumer demand trends. Citespace was utilized in this study to conduct a bibliometric analysis of research pertaining to plant-based meat. A study model was then created to analyze the primary elements affecting the consumption behavior of plant-based meat products. This study employs Zhengzhou as a case study to construct a research model to examine consumers' inclination to purchase plant-based meat products. The model is derived from survey data obtained from 570 consumers. The findings indicate that the characteristics of plant-based meat products significantly influence consumers' purchase intentions and consumption behaviors by shaping their perceptual activity. Price rationality, technical security, and flavor richness are three principal factors influencing customer purchasing of plant-based meat products. The perceived value and trust of consumers can somewhat mediate the influence of plant-based meat consumption behavior. This study offers significant insights into purchasing intentions and consumer behavior in first-tier cities in China. The outcomes of this study can provide a beneficial framework for imitation meat producers to improve product development and stimulate customer interest in the plant-based meat market.

Analysis of the Current State and Prospects for the Development of the Tourism Services Market in China

Aim. The purpose of the study is to analyze the current state of the Chinese tourism services market and the prospects for its development in the context of the public policy of the PRC.Tasks. Research objectives: perform a cluster analysis of entrepreneurial activity in the field of tourism, construct a diagram of the distribution of travel agencies by clusters; comply with the current state of the tourism services market in terms of key metrics; study government support measures for the industry; determine the prospects for the development of the tourism services market of the PRC and Russian-Chinese cooperation in the context of the implementation of the new “double circulation” strategy.Methods. Methodological basis and research methods: systematic approach, logical analysis, synthesis, cluster and regression analysis, content analysis of open sources.Results. The results obtained: the supply-side model of China’s modern tourism landscape includes three clusters; The specificity of China’s domestic tourism market is the holiday tourism segment; a new driver of economic growth is domestic tourism, the preferences of domestic tourists reflect a wide range of interests; the system of state support for tourism includes direct and indirect methods that adapt to changes in the external and internal environment.Conclusions. With a high probability, the prospects for cooperation between the PRC and the Russian Federation are assessed quite highly; favorable factors in the development of Russian-Chinese cooperation are the opening of new “windows of opportunity” after the COVID-19 pandemic, as well as the restriction of outbound tourist flows to unfriendly countries and changes in the vector towards the BRICS countries, SCO, and EAEU.

Revealing the Way to Buying New Energy Vehicles: Green Perceived Value, Green Perceived Risk, Environmental Awareness, and Green Trust

Under the current low-carbon background, new energy vehicles are the main force in the new energy industry to reduce traffic pollution. Based on improving energy conservation and environmental protection, and taking consumers’ purchase intention (PI) of new energy vehicles (NEV) as an example, this study explores the influence mechanism of consumers’ green perceived value (GPV) and green perceived risk (GPR) on consumers’ PI of new energy vehicles. This study found that the higher the GPV, the higher the consumers’ willingness to buy NEV. Moreover, the higher the GPR, the lower the consumers’ willingness to buy NEV. Green trust plays an important role in promoting the consumption behavior of NEV. Citizens’ environmental awareness (EA) has a significant moderating effect on customers’ GPV, GPR, GT, and PI. By collecting samples from the world’s largest market, we try to provide meaningful insights for new energy vehicle companies that have entered or plan to enter the Chinese market.

A new understanding of Chinese luxury consumers’ spending surge: role of pandemic-related negative emotions

ABSTRACT This study examines the motivations and antecedents of consumers’ revenge-spending behaviour in the post-pandemic and the moderating effects of negative emotions on the relationship between these antecedents and revenge-spending behaviour. Data collection was conducted in China regarding the luxury fashion industry. 481 respondents were analysed using structural equation modelling. The results indicate that positive mood reinforcement, arousal need, and material resource need positively influence revenge spending. Moreover, boredom, depression, fear, and anxiety exhibited varying moderating effects on revenge-spending behaviour, depending on preceding factors. This study provides recovery strategies for businesses based on psychological antecedents and well-being outcomes of revenge spending.

The Too-Big-to-Fail Premium in Tier-2 Capital Bonds and Additional Tier-1 Capital Bonds Primary Markets: Evidence from China

Abstract This study examines the too-big-to-fail expectations in the primary market issuance spreads of commercial bank tier-2 capital bonds and additional tier-1 capital bonds in China. Using a sample of 574 issuances with total amount of 4.76 trillion RMB (749 billion USD), we conduct median regressions with the issuance spreads as the dependent variable. The coefficients of DSIB and GSIB are negative and statistically significant at 1% and 5% levels respectively in the full sample, and are negative and statistically significant at 1% level in the subsample after the guidance on asset management businesses was announced. Ceteris paribus, the issuance spreads of capital bonds of systemically important banks are 15.2 bps to 19.7 bps lower than those issued by other banks. The too-big-to-fail expectations and implicit guarantee of systemically important banks in the Chinese bond market, which narrow the primary market spreads of capital bonds issued by systemically important banks, may account for the results. To address the potential endogeneity issues, we use 90% quantile and 95% quantile of sample bank consolidated assets as proxies of systemic importance, and use China Development Bank bond yields to calculate issuance spreads, and the results show that the conclusion is robust.

Tesla’s Strategic Growth and Challenges in the Chinese Electric Vehicle Market

In recent years, the global focus on environmental protection and sustainable development has led to the rapid growth of the electric vehicle (EV) industry, with Tesla emerging as a global leader. Particularly in China, the world’s largest automotive market, Tesla’s performance has been remarkable. This study focuses on Tesla’s development in the Chinese market, exploring its strategic decisions, challenges, and competitive environment. Through a combination of policy analysis, market research, and competitive benchmarking, this study examines Tesla’s market entry strategies, the impact of government support for new energy vehicles (NEVs), and the challenges posed by local competitors and regulatory constraints. The study concludes that Tesla’s success in China is largely attributed to its brand strength, technological innovation, and localized production through the Shanghai Gigafactory. However, it faces significant challenges, including competition from domestic NEV manufacturers, regulatory complexities, and geopolitical tensions. To maintain its competitive advantage, Tesla must continue to innovate, localize its products, and adapt to an evolving political and market environment.

Paradox: Revolutionizing American-Inspired Sportswear in the Chinese Market

Paradox aims to disrupt the rapidly growing Chinese sportswear market, which has reached a size of $47.8 billion, by targeting men aged 15-35 years—a demographic that consumes over 60% of the sportswear in the country. The company leverages American-inspired designs combined with affordable pricing, addressing the gap created by leading brands such as Nike, which often overprice their products, limiting access for the targeted consumers. Paradox’s competitive advantage lies in delivering quality comparable to American labels at lower price points, appealing to emerging middle-income earners eager to embrace an American athletic lifestyle.The founding team, comprised of experienced professionals from the sportswear industry, has streamlined the supply chain and manufacturing processes to maintain efficiency while employing a direct-to-consumer business model. With projected conservative sales growth of 25% per year and a solid marketing strategy focused on influencer partnerships and e-commerce, Paradox is set for significant market entry. The startup seeks $10,000 in funding to launch its first collection and expects to generate profits within the first 18 months. With its unique value proposition, strong management team, and targeted approach to an underserved market, Paradox presents itself as a lucrative investment opportunity poised to revolutionize the sportswear sector in China.