...Standard Chartered China becomes first international bank to launch Alipay’s Express Payment service Providing even more customer convenience with new express payment service 15 February 2012, Shanghai, China - Standard Chartered Bank (China) Ltd and Alipay today jointly announced the launch of the new Standard Chartered - Alipay Express Payment service. The launch of this new service innovation is a reflection of Standard Chartered China‘s commitment to customer service excellence and a first for international banks in China to provide a service which enables debit card holders to safely and conveniently pay off their online purchases, anywhere, anytime. Standard Chartered China debit card holders can now join 40 million other users of the Alipay Express Payment service to make secure and convenient purchases with as many as 460,000 online merchants worldwide that offer Alipay as a payment option, including Taobao.com and TMall.com. To use the Express Payment service, users do not need to register for online banking but must provide their debit card number, mobile phone verification code and other related information. Once approved, users need only their Alipay password and mobile verification code to complete transactions. Standard Chartered China and Alipay have implemented a rigorous security system to provide consumers with ease-of-use and account protection. The state- of-the-art security system reduces the risks caused by Trojan horses and phishing links...
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...INTRODUCTION In the year 2008 the world saw one of the greatest financial crisis since the great depression of the 1930s. This financial crisis also known as the “Great Recession” caused various problems for different economies worldwide. The collapse of the Lehman Brothers bank, a sprawling global bank, in September 2008 almost brought down the world’s financial system. Large sums of tax payer based bail-outs were needed in order to shore up the company. However, the issuing credit crunch made matters worse as it turns the global financial crisis into the worst resection of the last eighty years (The Economist, 2013). The case of the global financial crisis was based upon the bank’s lending policies and the status of the housing sector. Basically, when banks make a loan, new money is created and just before the recession, banks created huge sums of new money by making new loans. In just seven years the banks doubled the amount of money and the amount of debt within the economy. Thereafter, the banks used this new money to increase the prices on houses instead of allowing money to flow to business outside the financial sector. From the money banks created between 2000 and 2007, thirty one percent went to residential properties, which pushed the prices of houses up faster than wages, twenty percent went to commercial real estate, increasing the prices on office buildings and thirty two percent went to the financial sector while only eight percent went to business outside the financial...
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...stories has been the rise of India and China, two of Jim O’Neill’s “BRIC” countries (FT Magazine, 2010). Despite the implementation of different economic policies (Gupta, 2008) both countries have emerged as major economic forces in the global economy (Bosworth and Collins, 2007), most notably since 1980. Since then, India and China have experienced a significant reduction in poverty with China lifting 500 million out of social deprivation. According to the World Bank (2013), China has had an average GDP of 10% each year while India has seen her GDP double over a similar period. The countries are often compared due to their large population and geographical vastness as well as climbing from third world countries to major economic forces in a relatively short time. However, despite a significant increase in GDP, India has failed to demonstrate the same rates of growth as China. Although both countries were in a similar position during the early nineties, China’s GDP has increased 7 fold since this time; whereas India, although steady, GDP has doubled. The average annual rate is by 10% in China compared to 5-6% in India (see Figure 1). The purpose of this paper is to compare the rates of growth of India and China over the past 30 years and examine possible explanations for this phenomenon. The economies of these countries are underpinned by social, economic and political issues which have all been relevant to their growth. China has placed emphasis on investment over...
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...International Business CEC Project, Focus: China Timeframe: February 18th to April 7th February 14th- China Shadow Banking: 6 Trusts Linked To Debt-Ridden Coal Company, Liansheng Group, Facing Default Risk Shadow banking can be seen as institutions that are not under the same regulations as traditional banks, primarily because they do not accept traditional deposits. This allows for banks to work with and sell higher yield products that also carry varying degree of risk without undergoing the regulations put forth by a government. In China, this has been problem as over the years many of these firms in the shadow banking industry has had trouble repaying the debts they owed on the instruments they sold. One such firm, Jilin Trust, is about to default on the loan given to the Liansheng Group, which will be the fifth time the firm has defaulted on paying products that have matured. Five other trust firms also invested in the Liansheng coal mining Group, even though it has been in debt for a considerable amount of time. Jilin Trust has made news primarily from the fact that it has already failed to pay 763 million yuan in maturing high-yield investments it sold to China's second largest lender. This is very problematic for China, as it can lower the faith investors have in the nation. If some of the largest trust firms have been unable to pay back investments they were selling, there is some sense of avoidance to not buy their products or further invest if there is no guarantee...
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...First International Symposium on Data, Analysis of Current E-Payment Solution in China--Third Party Payment Platform Nie Jin School of Information Management Wuhan University Wuhan P.R.China 430072 Email: nie_jin@yahoo.com from Master Card and Visa [5]. This paper presented that establish an effective credibility guarantee system is important to the e-business development in China. Based on the analysis of different payment systems a third party payment platform is one way to avoid credibility and security pitfalls in e-business monetary transaction in China at present. Abstract—Electronic business and especially electronic payment systems have been flourished in the past decades. Securely transfer monetary value can establish e-business participants’ confidence and facilitate the e-transaction process. Establishing the guaranteed credibility system can effectively strengthen the electronic business growth. This paper presented that setting up an efficient credibility system will improve Chinese e-commerce environment. Implementing the third party payment platform would be one of the effective solutions to Chinese e-business monetary transactions at present. Key words: electronic payment system, third party payment platform, credibility system I. II. Credibility has always been a virtue in Chinese culture. China used to be under central planned economy. Central government controlled the whole nation’s economic activities and guaranteed...
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...offered the bank tremendous opportunities for growth as seen by the growth in developing markets (HSBC.com, 2016). The profitability of developing countries has surpassed profits for developed markets such as USA and Europe. An illustration of the same can be seen by the asset and profit ratio in developed markets and developing markets which show positive numbers in terms of profit (Morris and Liu, 2015). Another benefit to operating in the emerging markets is the opportunity to tap into the wealth management industry. The banks origin in Hong Kong coupled with the presence of an already established wealth market in the region makes an opportunity for the bank to acquire more clients. HSBC’s has also taken advantage of its diverse cultural image and reduced cost of wages to outperform its operations in developed markets (HSBC.ca, 2011). The cost of running its operations in developing countries such as Brazil, Singapore, India and Thailand is much lower than in Europe. The reason for cheaper operations cost is as a result of reduced remuneration cost in areas of developing countries in comparison to the already developed countries. The risks associated with the bank include the inconsistent application of policies and regulations in the new markets (Henning, 2016). The problem of acquiring licenses in the developing markets poses a challenge to the bank (Wildau, 2016). The bank has also faced the problem of competing with already known banks such as national banks. Target Market...
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...turn up a single Chinese option. In fact, he could hardly find anything about China on the Internet at all. After returning home, he founded a company called China Pages - a directory of various Chinese companies looking for customers abroad. China Pages was a flop. But a few years later, Ma took another stab at an Internet business. With a group of 17 friends and $60,000 of funds, Alibaba was born. [Baidupedia Web] Within only 15 years, Alibaba became the largest e-commerce company in the world, with approximately $300 billion in annual gross merchandise volume ("GMV") - or nearly 1.5 times the combined GMV of Amazon and eBay. In fact, more than three out of every four dollars spent online shopping in China goes through its platform, which should come as no surprise given that Alibaba's user base is nearly equal to the entire population of the U.S. Alibaba's "ecosystem" is made up of three leading Chinese online retailing platforms: (1) Taobao.com, China's largest online C2C shopping site; (2) Tmall.com, China's largest third-party B2C platform for branded goods; and (3) Juhuasuan.com, China's most popular group buying marketplace. These three marketplaces account for over 80% of revenue, with the remainder coming from Alibaba's China wholesale sites, international commerce, cloud computing, and other services. By operating some of the world's largest online marketplaces, Alibaba benefits from a strong...
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...HSBC in China Case Analyses from Luthans & Doh, In-depth Integrative Case 4.1 Chander ZHU Dec. 2014 IBS_HSBC in China Hong Kong and Shanghai Banking Corporation was founded to finance the growing trade between Europe, India and China in Hong Kong March 1865 and month later in Shanghai. (King, 1987) With its longtime settled in China, HSBC is already member of top tier financial institutions operating in the biggest emerging market and been the largest foreign banking group in China. This essay is aiming to exam the strategy of HSBC revolution over the years in China, meanwhile to illustrate the HSBC’s strategy changed before and after China’s accession to the WTO. Then, the strategy of HSBC’s expands in China’s rural areas will be mentioned with both evaluation of advantages and disadvantages. Following, the strategy of HSBC on how to enter and operate in the other emerging markets will be discussed in terms of successful cases and setbacks. Finally, the influence from world economic crisis on HSBC and future potential opportunities for HSBC will definitely be focused on. Before the WTO accession in 2001, China’s banking industry...
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...The Influence of Internet Finance for SME Financing in China Introduction Currently, SME (Small And Medium-size enterprises) is the foundation of promoting national economy development, constructing the subject of market economy and promoting the development of social stability in China (Wang, 2011). In recent years, the economic situation has experienced dramatic change and this huge variation stimulates financing needs of SMEs in China greatly. Nevertheless, the majority of SMEs have financing difficulties due to their personal limitations and insufficient external support. As a result, it is hard for them to have a further development. With the advent of the information technology revolution, Internet Finance is considered as a new effective way to solve the financial difficulties of SMEs and it brings about many positive influences, although there are some negative aspects to improve. This essay will firstly inform background information about the reasons for SME financing difficulty as well as Internet finance’s current condition. Additionally, it will give evidence for the main argument that there are more positive influences than negative influences of Internet finance on minor enterprises’ financing issue. Finally, some practical suggestions will be put forward, helping Chinese SMEs to find the optimal choice in financing. Background There are more SMEs in China than before in accordance with the relevant statistics. According to Wang (2011), SMEs account for 99...
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...Please write a short report on the advantages and disadvantages of international trade for the countries whose data you downloaded recently. You are required to illustrate your report with data and charts. I) Introduction: “The international trade is the exchange of goods, services and capital between countries” (Haekal, 2012). Trade exists for centuries but had known an international dimension with the globalisation. In this report, we will see some advantages and disadvantages of the international trade, through the examples of two countries: France and Italy. II) The advantages of trade: It exists many advantages to the international trade. We will see three of them, which are, meet the need of the country, create jobs and attract foreign investments in the country. 1) Meeting the need of the country: By open its economy to the world, a country...
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...Banking and Commerce, April 2009, vol. 14, no.1 (http://www.arraydev.com/commerce/jibc/) An Experimental Investigation of Online Banking Adoption in China Guangying Hua, PhD candidate Bentley University, Massachusetts, USA Postal Address: Morrison 324, Waltham, MA 02472 USA Email: ghua@bentley.edu Guangying Hua is a PhD candidate at Bentley University. Her research interests include business analytics, social networking, and issues in IT applications in business area. Abstract Online banking, an Internet based service enabling people to do financial transactions, has been an obstacle for the development of e-commerce in China. This paper investigates the online banking acceptance in China. We conducted an experiment to investigate how users’ perception about online banking is affected by the perceived ease of use of website and the privacy policy provided by the online banking website. We find that both perceived ease of use and privacy policy have a significant impact on user’s adoption of online banking. In this study, we also investigate the relative importance of perceived ease of use, privacy, and security. Perceived ease of use is of less importance than privacy and security. Security is the most important factor influencing user’s adoption. A discussion of the implications of these results and limitations are provided at the end. Keywords: Online banking; Information privacy; Security; Technology Acceptance Model (TAM); Experimental design © Guangying Hua, 2009 JIBC...
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...QUESTION 1 Using the Solow Growth Model to explain the growth miracle in China since 1980: 1. What were the main engines of growth for China for the period 1980–2013? 2. Do you expect China's exceptional growth record to continue in the near future? Why or why not? 3. Can the Chinese experience be replicated in other less developed countries? 1. Introduction China has been the subject of economic and social experimentation since the establishment of the People’s Republic of China in 1949 (Assbring 2012, 4). Still, up until the late 1970’s, China was one of the poorest performing economies in the world, impaired by social unrest and economic inefficiencies (Fan, Zhang and Zhang 2000, 8). After a change in leadership in 1978 and while witnessing the success of other East Asian economies in particular, Emperor Deng Xiaoping initiated economic transformation through the implementation of policies embracing the open market. As a result, China has been able to maintain an impressive growth rate averaging 10% over more than three decades; an achievement unsurpassed by any other economy (Ding & Knight 2008, 2). This unprecedented sustained growth begs the question of what is driving this growth and whether this growth can continue to be maintained in the future. Furthermore, is it possible for the Chinese growth “phenomenon” to be replicated by other countries? This paper intends to address these issues by employing the Solow Growth Model (SGM) as a means of...
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...Political and legal analysis Political factors include government regulations and legal issues and define both formal and informal rules under which firm must operate. And it is claimed that the political force is probably the most turbulent force in the environment (Fahey & Narayanan 1986). In the past one decade, the Chinese government attaches great importance and focus to the development of e-commerce in the most populous country, for example, on issuing the Summaries of the Middle/Long Term Science and Technology Development Plans of China and the Development of Information Industry Plans in the Eleventh Five-year and Long Plan in 2020 Years in The Ministry of Information Industry, the “application of e-commerce platform technology” has been listed as a key point (Li 2010, p.260). In term of the legal system, the Chinese legal framework for e-commerce is still in its nascent stage and has already experienced several problems. China has limited experience with drafting e- commerce legislation for issues such as transactional security, intellectual property rights protection and tax. And regulations supporting areas critical to the development of e-commerce such as the privacy, consumer rights, and validation of electronic contracts and recognition of digital signatures have yet to be written...
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...1 Overview of Recent United States Monetary Policy 8 3. Recent (2011) Direction of Monetary Policy 10 4. Market Reaction to Monetary Policy 12 5. Conclusion 15 6. Reference List 16 1.0 Introduction In macroeconomics, monetary policy is an importance tool to Central Bank and is a policy set by the members of Central Bank. It is an economic strategy chosen by government that authorizes Central Bank to regulate and influence the economic activity by controlling the monetary base flow into national economy. The goals of monetary policy are to promote growth of the economy, stability of prices and reduce unemployment rate. Monetary policy can be classified into two categories, namely expansionary monetary policy and contractionary monetary policy. Although, the objective for the two policies is the same, they adopt different approaches in reaching this objective. Expansionary monetary policy is used when a country is facing a recession in the economy business cycle, whereby it increases the money supply in economy system to meet its objectives. In contrast, where there is a peak in the economy business cycle, central bank will use contractionary monetary policy to reduce the money supply in economy system so as to retard the inflation. For example, the United States, one of the top ten richest countries in the world (IMF, 2011, pp.1), had entered into a recession seen the global financial crisis and faced a slow...
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...in Hong Kong and Shanghai in order to finance the growing trade between China and Europe. HSBC has it’s headquarter in London and enriches an international network which comprises around 6,200 offices in 74 countries and territories (HSBC, 2013). For decades, HSBC has grown and adapted to conquer the difficulties in China’s revolution and economic crises and now becomes the largest foreign bank in China. This essay combines core module theories and empirical case study to analyze HSBC’s strategy. In the first part, this essay will demonstrate how the strategy of HSBC changed, and compare the strategies before and after the accession to the WTO. The second part will discuss advantages and disadvantages of concentrating on rural areas and emerging markets. The influence of financial crisis, future opportunities as well as threats will be analyzed at last. 1. HSBC’ strategy and China accession to the WTO 1.1. The reason for changing strategy Down the decades, HSBC’s has grown and adapted their strategy from localization to globalization for China in order to react to the changes of economic reform and financial liberalization. HSBC differentiates its strategy from those competitors by describing the unique characteristics which is ‘The world’s local bank.’ Due to this position and strategy, HSBC is involved directly and indirectly in China's modern economic development and reform. HSBC’s strategy in China changed for several reasons. First, HSBC had an insight that emerging market...
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