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Chinese Culture

26
Feb

Moral Hazard: Is China at Risk?

We usually come across the term “moral hazard” when discussing situations pertaining to the Western financial system, especially after the Great Recession of 2007-2008 (click HERE for an article through which we analyze its effects on China). Perhaps the most textbook example revolves around the morally corrupt bonus mechanism bankers had. On the one hand,

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25
Feb

There’s No Business Like (Chinese) Show Business? A Glimpse into China’s Entertainment Industry

Here at ChinaFund.com, we have developed the habit of mentioning the fact that longing Chinese assets without meaningfully “betting” on China’s rising middle class is a sub-optimal strategy at best. For reasons which range from China’s growth model transitioning from production/exports/infrastructure to domestic consumption to a wide range of metrics which paint the picture of

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24
Feb

Meritocracy in China: Meritocratic Society or Dunning-Kruger Effect on Steroids?

Say what you want about let’s call it Western society but for better or worse, a valid case can be made that meritocracy contributed to the current dominance (economic and otherwise) of the West. Whether meritocracy took the form of capitalism (the proverbial American dream, if you will) or socialism (in Northern Europe, with different

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21
Feb

Is China Tolerant… or How Tolerant Is China?

Misconceptions and misrepresentations abound to such a degree when it comes to China that the average Western observer is oftentimes left scratching his head. For example, he might read one article about “communist China” today and tomorrow, another one which praises China for actually being more capitalism-oriented than let’s say many European nations in certain

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19
Feb

Will (or Can) China Become a Democracy?

Those familiar with “all things China” and especially loyal ChinaFund.com readers have undoubtedly realized that a lot of things have either changed or are in the process of changing over in China. Whether we are talking about a transition from production and export-led economic growth to a consumption-oriented one or to cultural aspects such as

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12
Feb

(More or Less Perceived) Chinese Double Standards and Ambivalence?

When embracing a new jurisdiction such as China as an investor, it is without a doubt important to wrap your head around a wide range of new let’s call it jargon: administrative regions, industry-specific particularities, you name it. However, while it is without a doubt important to understand the words that are being used, it’s

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05
Feb

Corruption in China: Temporary Roadblock or Long-Term Curse?

Not only is this article written from the perspective of ChinaFund.com’s managing partner (the managing partner of an entity with a hands-on experience in China which exceeds 13 years), it’s also written from the perspective of someone who grew up in Eastern Europe, in a country that became essentially (in)famous at the very least regionally

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04
Feb

Nepotism in China: Nuisance or Disruptive Factor?

Western investors have varying reactions to… let’s call them certain Chinese realities. Issues pertaining to nepotism most definitely do not represent exceptions. It ultimately does depend to a significant extent on their country of origin. To give a few examples pertaining to Europe: someone from Northern Europe may find any kind of nepotism unacceptable, a

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29
Jan

Stereotypes in China and How They (Might) Affect Portfolios

Before getting started, it is vital to remind investors not to (over-)judge themselves for falling victim to the human nature-induced tendency of stereotyping. As toxic as that behavior frequently proves to be in today’s society, it is excusable to a certain degree due to being an integral part of who we are for obvious evolutionary

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24
Jan

1 Out of 5 Human Beings Is Han Chinese… and Why You Should Care

To avoid confusions, we would like to make it clear right from the beginning that we are strictly referring to the Han Chinese population rather than ~1.4 billion Chinese population in general. However, as mentioned in another article, roughly 91.65% of all Chinese citizens are Han Chinese (in other words, almost 1.3 billion individuals). If

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