BYÂ Fraser Tennant
The deeper trends reshaping the business and investment environment in China today are the focus of a new report â€“ â€˜China 2015: Chinaâ€™s shifting landscapeâ€™ â€“ by the boutique investment bank and advisory firm, China First Capital.
As well as highlighting slowing growth and a gyrating stock market as the two most obvious sources of turbulence in China at the midway point of 2015, the report also delves into the deeper trendsÂ radically reshaping the countryâ€™s overall business environment.
Chief among these trends is the steady erosion in margins and competitiveness amongÂ many, if not most, companies operating in Chinaâ€™s industrial and service economy. As the report makes abundantly clear, there are few sectors and few companiesÂ enjoying growth and profit expansion to match that seen in previous years.
The China First Capital report,Â quite simply,Â paints a none too rosy picture of Chinaâ€™s long-term development prospects.
â€œChinaâ€™s consumer market, while healthy overall, is also becoming a more difficult place for businesses to earn decent returns,” explains Peter Fuhrman, China First Capitalâ€™s chairman and chief executive. â€œRelentless competition is one part, as are problematic rising costs and inefficient poorly-evolved management systems.â€
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