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04 October 2012

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The Big Call

Service sector stays robust

Our surveys and grassroots research show that China’s service sector is posting robust growth this year, infusing the economy with resilience to the slowdown.

Consumer China

Cosmetics – multinationals clean up in China

Leading multinationals dominate China’s $28bn cosmetics industry, and are localising and diversifying in a bid for a greater share of this increasingly lucrative market

L’Oreal – diversification key to market leadership

The French cosmetics giant’s extensive brand line-up and strong mainland production and distribution networks have enabled it to become the largest cosmetics and skincare maker in China

Estee Lauder – premium cosmetics maker focused on China

The US cosmetics maker is planning to launch its first Asia-focused brand and expects strong sales in China to support top-line growth in FY13

Shanghai Jahwa – new management driving upmarket shift

A greater contribution from higher-end cosmetics products has lifted gross margins for China’s leading domestic cosmetics maker

L’Occitane – French roots, Chinese branches

Hong Kong-listed French cosmetics maker L’Occitane plans to continue tapping into growing demand for natural beauty products in mainland China

Shiseido – hit by anti-Japanese protests

Recent anti-Japanese protests have seen a marked decline in popularity for cosmetics maker Shiseido in China according to our recent survey, but we expect the impact to be temporary

Procter & Gamble – halting Olay’s decline

The world’s largest consumer goods company is attempting to appeal to younger cosmetics buyers in a bid to stem market-share loss for leading skincare brand Olay

Rural China

Rural boom ebbs as pig rearing, new loans ease

Low pig prices, muted rural lending growth and slow tractor sales dragged the China Confidential Rural Wealth Creation Index down 0.8pp to 50.2 in August, but underlying strength in the rural economy remains intact

Financial China

China’s triangular debt problems mount

A surge in accounts receivable has resulted in rapid overdue loan growth, pointing to a pile-up of triangular debts among both state and private firms that could cause considerable damage to the banking system

Capital Intensive China

Risky road to diversification for real estate developers

Developers are branching out into holiday homes and retirement communities, but while both sectors offer short-term profits, they also present significant but different risks

Forbidden City

Bargains and compromise in run up to congress

With the 18th Party congress set to get underway in November, the most likely outcome is a compromise on policies and personnel between rival groups

Best of Chinese Commentators

The implications of Bo Xilai’s trial

Leading commentators discuss the issues at play around former Chongqing Communist Party secretary Bo Xilai's impending trial

New five-year plan raises financial reform hopes

China’s new five-year plan for the financial sector pledges to push forward with the liberalisation of interest and exchange rates, as well as capital account convertibility


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