Hidden Guard for China’s Overseas Investment
Massive outflows of Chinese capital and workers have given birth to an overseas private security market estimated to be worth up to US$100 billion. This mysterious industry has various kinds of participants: there are large security companies with law enforcement backgrounds that operate under the supervision of the Ministry of Public Security; there are also irregular small firms. Recently, international security giants have also begun competing in this market.
Throughout the world, the global private security market, has established an international governance framework participated in by governments, industry associations, and enterprises. As a latecomer with huge overseas investment and strong demand for security services, how will China develop an overseas security industry that is competitive on the global market and meets the need of the Chinese government as well as Chinese businesses and citizens?
BGI, a Microcosm of the Gene Sequencing Industry
BGI’s listing marked the most-watched IPO on the A-shares market in recent years. Though BGI’s share price has exceeded the daily trading ceiling for five consecutive trading days, the gene sequencing industry’s surge in these years has made it a “Red Ocean” with development bottlenecks throughout the industry. Therefore, many people are not optimistic about BGI’s long-term performance.
BGI is a microcosm of the gene sequencing industry. After a frenzy in 2015, a slight rational return in 2016, and a slowdown in the first half of 2017, ordinary gene sequencing companies are unable to get the attention of investors. Going forward, the key point of the industry will lie in breakthroughs in technologies or business models.
Comprehensive Financial Regulation Begins
The National Financial Work Conference convened in Beijing on July 14 and July 15, 2017. At the meeting, Xi Jinping proposed the establishment of the State Council Financial Stability Development Committee.
The meeting confirmed that the regulatory model is going to strengthen comprehensive regulation, and highlight functional regulation and conduct regulation. This is the first time that change of regulatory model has been confirmed at such a high level, which means that the “institutional supervision” model previously used by the central bank, the CBRC, the CSRC, and the CIRC will fade into history. This is a major shift in regulatory model.
Shake-up in Gansu Officialdom
The anti-corruption efforts in Gansu Province, which has gradually intensified, reached a high point in the first half of this year. It was officially announced on July 11 that former Gansu Province Party Secretary Wang Sanyun is currently under investigation after being suspected of serious violations of discipline. In addition, Lu Wucheng, former Deputy Director of the Standing Committee of Gansu Provincial People’s Congress, and Yu Haiyan, member of the Standing Committee of CPC Gansu Provincial Committee, were also investigated.
Caijing learned that in addition to the investigation of a number of Gansu officials, the deaths of at least four local officials, who died under unusual circumstances,, may have something to do with major illegal urban construction projects now under investigation.
Cashier-less Stores Emerge in U.S. and China
In the United States as well as China, cashier-less stores are gradually becoming a reality. Domestic players in this field, Internet companies and fresh food supermarkets alike, aim to let customers choose goods and checkout all by themselves through the application of technologies like visual recognition, sensor integration, and in-depth learning algorithms.
But, to become the “standard configuration” in retailing in the future, checkout-free supermarkets have to become “smarter and more considerate” to win over customers from online shopping.