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29 November 2012

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Macro View

A call for reform

The Big Call

China’s robot age dawns

Rising blue-collar wages and disadvantageous demographics suggest a surge in industrial robot use in coming years.

Consumer China

Supermarkets – the limits of foreign expansion

After a decade of double-digit revenue growth and rapid expansion in China, foreign supermarket operators are finding the going increasingly tough, providing opportunities for leading domestic rivals.

Wumart – regional player faces intense competition

The Beijing-based supermarket operator faces stiff competition in its three core regions and may miss its full-year store-opening target.

Walmart – slower store expansion, greater online focus

Walmart is slowing new store openings in China in order to focus on boosting profitability, a strategy that should pay off in the long term, especially given its strong positioning in China’s burgeoning online grocery market.

Tesco – adjusting its strategy

Tesco has scaled back its short-term expansion plans in China amid sluggish sales and intense competition, focusing future growth on its three main regional markets.

China Resources Enterprise – concentrated supermarket expansion

Conglomerate China Resources Enterprise continues to grow its hypermarket and supermarket empire aggressively within its strongholds, but remains cautious about expanding into new regions.

Sun Art – lower-tier strength drives continued ouperformance

RT-Mart and Auchan operator Sun Art outperformed competitors in 1H12, and its strong presence in lower-tier cities and high operating efficiency should see it post strong top- and bottom-line full-year growth.

Financial China

Shaky foundations for machinery sales

Sales at machinery manufacturers have performed surprising well this year but appear to be driven by a new form of shadow financing rather than real demand.

Selected financial charts

A selection of key financial data over the past fortnight

Capital Intensive China

Coal-price reform builds momentum

Political support appears to be growing for the full liberalisation of coal prices, especially as they remain depressed, enabling the government to liberalise coal prices in the near-term while gradually moving towards electricity price reform in the future.

Best of Chinese Commentators

Bids up at CCTV advertising auction

China’s state broadcaster enjoyed an 11.4% YoY increase in advertising pre-sales revenues at its 2013 auction, but some industry experts believe that its influence may be waning.

Baijiu maker rocked by safety scandal

Analysts discuss the significance of yet another food and beverage safety scandal, this time relating to A-share listed baijiu maker Jiugui Liquor


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