Identifying Top Provincial Opportunities In China

Via Emerging Markets Insights, an interesting look at China’s provincial opportunities:

Companies are expanding beyond coastal provinces into inland central and west provinces to leverage low manufacturing costs and capture growing domestic markets. To be successful in geographical expansion, multinationals need to foresee the growth trajectory of provinces and regions in China to understand from where future growth will come. FSG has identified nine provinces of growth opportunity, which multinationals should focus on to maximize ROI in geographical expansion – refer to the green circle in the chart below (click image to enlarge):

Chinese Provinces Mapping GDP Growth vs. Size 2012

As indicated in the image below (click image to enlarge) strong economic growth in western China can be attributed to organic growth from the provinces’ low base and favorable government polices launched in 2010 to bridge the gap between eastern and western China.

Provincial GDP Growth Rate YOY

This entry was posted on Thursday, July 25th, 2013 at 8:18 pm and is filed under China.  You can follow any responses to this entry through the RSS 2.0 feed.  You can leave a response, or trackback from your own site. 

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About This Blog
Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.