Should Chinese Peasants Play the Stock Market?

Jenny Zhu Posted in business, China, society，Tags: , , , ,
27 April 2010
4

Last week, news that CSRC (China Securities Regulatory Commission) has designed a series of initiatives to encourage farmers to invest in the stock market stirred up a fierce debate in China. (Currently, only urban residents are allowed to buy stocks in China.) The proposed policy met ferocious opposition from the public and experts alike. They see it as a ploy to cheat China’s 900 million farmers into putting their life savings into China’s notoriously volatile, ill-regulated and nontransparent stock market. In various online surveys, the majority of urban investors blankly said that China’s farmers lack basic financial and investment knowledge to discern which stocks to buy and whether they should invest in the first place. The concern is definitely legitimate and reflects the true condition of rural-urban disparity in China. But whether farmers should be allowed to buy stocks also has a human rights side to it. Most of China’s public policies treat farmers and city residents differently. But as the country tries to eliminate these differences and extend welfare to all, especially the farmers, shouldn’t the stock market follow the suit of health care and education?

But on the other hand, urban investors’ opposition is not unfounded. A closer look at China’s stock market and Chinese investors’ characteristics would suggest a more nuanced view. Andy Xie, former Morgan Stanley chief Asia-Pacific economist, now independent economist best known for his repeated warnings against China’s overheated economy is a good resource on the topic. He once described China’s economy as a “giant Ponzi scheme”. There is a lot of truth in his view. There are currently around 120 million registered individual investors in China. It is an extremely fragmented group that spans over all adult age groups and professions. The majority of these investors trade stocks on their own, not through a fund. Nor are they value investors. Most people buy and sell stocks so frequently that investing in the stock market is called “炒股票” in Chinese (literally meaning “stir fry stocks”, referring to the fast action.) Given the insufficiency in the market and weak corporate governance, China’s investors are extremely vulnerable to market volatility and their own speculative action. Many people base their investment decisions on “insider information”, which is usually fake. The same market, same investment culture and style applied to China’s farmers, it is scary to imagine the consequence. Thus, it’s a relief when China’s Securities and Regulatory Commission came out to announce that it has no plan to encourage farmers to trade stocks.

Drinking Culture in China

Jenny Zhu Posted in business, China, culture, inspiration, learning with ChinesePod, Uncategorized，Tags: , ,
08 February 2010
19

The two weeks leading up to Chinese New Year are marked by excessive feasting and drinking between colleagues and friends in China. It is an important social duty that puts one’s drinking ability into serious test. I was at such a dinner recently where a friend was barely holding his liquor, but insisted on drinking until he collapsed. He even proudly announced that his body can collapse, but his dignity can’t. This is the essence of China’s drinking culture.

Destructive drinking isn’t really a college thing here as it is an indispensable social ritual among mature, grown up men. They drink not for the thrill of getting wasted, but to show that they are trustworthy and upright. Yes, drinking excessively is a respectable quality here. We have this word 酒品/jiu3pin3, which combines the word for alcohol/酒/jiu3 and the word for personal integrity/人品/ren2pin3. The result is a concept which glorifies drinking and associates it with one’s dignity.

Business dinners in China are the most prominent display of our die-hard drinking culture. Even if you can’t drink, you need to drink to give your business partner face and respect, and also to show him that you are honest and trustworthy by putting your life on the line and drinking more than you are capable of. It’s not uncommon to find people whose entire career is built on their ability to drink. But of course not everyone in China abides by the same rule. The drinking culture in Shanghai for example is a lot more moderate. But that’s also why people from Shanghai are often the subject of ridicule at dinner tables.

ChinesePod School Coming Soon to Shanghai

Jenny Zhu Posted in business, learning with ChinesePod，Tags: ,
23 August 2009
5

Despite being a web and mobile tool based learning solution, ChinesePod has always understood the importance of physical class in learning Chinese. Over time, many Poddies have requested us to add the class component to our offering. That’s why I am extremely excited to announce that ChinesePod will start classes in Shanghai in fall. It will work in conjunction with our current service to provide a much more streamlined and efficient option in learning Chinese. The podcasts, vocabulary and online exercises provide you with input, while the physical class gives you the essential structure, practice, motivation and discipline. We will kickoff with an intensive ‘newbie boot camp’, small group classes where the ChinesePod teacher helps you lay a solid ground in learning Chinese. Of course, it is all done in true ChinesePod spirit, i.e. practical, engaging and effective. I am heading the project and will be spending a lot of time in the class with Poddies.

Now, I’d heartily appreciate it If you could answer this simple question:

What do you want the ChinesePod class to offer?

Thank you and look forward to seeing you!

The Charmed Expat Life Over?

Jenny Zhu Posted in business, China，Tags: , , , , ,
18 March 2009
10


A friend of mine who works for a large consulting firm is busy moving, downgrading to be exact. Her housing allowance was cut from RMB30,000 to RMB10,000. If moving is tedious, imagine how horrific it is to move to a worse place. I have heard a lot about how expats have been hit hard by the current recession, that many are gone and the rest have to take significant cuts in salary and benefits. It seems the days of champagne brunch and art gallery visits are over. Will the charmed existence of the expat be a tale like those of Shanghai in the 1930′s? There is no official figure of the expat causalities yet. But I suspect talking to operators of some favorite expat hangouts in town will give a good indication.

On the other hand, there has been rising interest in Chinese with overseas education and work experience. The Shanghai government and a number of state owned enterprises have gone on headhunting trips to New York and London. They especially liked Chinese with overseas experiences who theoretically would have the best of both worlds and bridge the gaps in language, skill and exposure. In addition, many of them command a more competitive salary or are willing to take less. For corporates, it seems to make sense to look for talent in this group, especially for mid-level management positions. But at the same time, many companies are putting freeze on new hires or being extremely cautious about it. So it doesn’t look too promising for anyone.

Who will support the wine bars sprouting all over the city now?

Cooking at the Peak: Interview with Rolf Knecht of Grand Hyatt Shanghai

Jenny Zhu Posted in business, China, interviews, management，Tags:
16 March 2009
8

[podcast http://jennyzhu.com/podcasts/SXT003_Rolf...[/podcast]

One key definition of a great city is the diversity and quality of its restaurants. In recent years, Shanghai’s dining scene has seen a surge both in quantity and quality, thanks to a flock of talented chefs. Today, my guest is a Swiss who brought his skill and talent to refine the palette of the city. Rolf Knecht is the executive sous chef at Grand Hyatt Shanghai. In a country famous for large scale operations, Rolf faces the same: 16 restaurants, 250 chefs and 400-people functions. Where does he begin? (That’s why he signed on for the job. )

How Not to Get Duped in China

Jenny Zhu Posted in business, China, cultural differences, interviews，Tags: , , ,
09 March 2009
1

I am sure you have received calls from ‘financial advisers’ and emails of inheriting a fortune from a distant relative. Ever since I started to register my own business, I have received tons of calls from swindlers, making up a plethora of lies ranging from ridiculous to highly skilled. If you live in China, this unfortunately is a fact of life. I hope some of my experiences could help you be more aware.

Top 3 lies:

1. I am the local tax authority. New businesses need to receive tax training (which is true). The training is free (hook), but you need to pay for books. I will courier them to you. You pay the courier man. (ha, definitely a scam).

2. I am Google (or Baidu) ‘s sales rep. We are offering a limited time promotion to promote your site.

3. I am from the local commerce bureau. We have an orientation course for new businesses. You need to attend.

Special attention: if you use an agent to handle your registration process as many do, pay a bit more and choose a trustworthy one (although price is no indicator of integrity). I have known people whose agent disappear overnight, causing them to lose not only money but also time.

An easy way to tell if you are talking to a scammer is through phone numbers. If they are using a cell phone number, it is a scam for sure. And finally, as a rule of thumb, always always be doubtful when you receive calls from ‘authorities’. They are scams 99.9% of the time. Although I did once ignore several calls from China Telecom and end up missing the internet upgrade.

Running a Tech Company in China: Interview with Steve Mushero

Jenny Zhu Posted in business, China, management，Tags: , , , ,
08 March 2009
3

[podcast http://jennyzhu.com/podcasts/SXT002_Stev...[/podcast]

China’s cost innovation has seen many global talents moving over, bringing their experience and vision. My very own work at ChinesePod is an example of it. There is certainly a lot of talented young engineers around, but there are also significant gaps that often drive an ex-Silicon Valley professional insane.

My guest this week is Steve Mushero, a Silicon veteran who moved to Shanghai to seize the opportunity here.  He is the cofounder, CEO and CTO of ChinaNetCloud, China’s first Cloud Computing company. Steve has served as CTO of Tudou, China’s largest video sharing site. He is a serial entrepreneur and investor, also an author with a published book “Offshoring the Middle Class: Managing White-Collar Job Migration to Asia”. In this podcast, Steve talks about how he builds relationship with his very young team. He also explains why there is a severe shortage of good managers in tech industry in China.

Foreign Managers in China: Real Stories of Trials, Tribulations and Triumph

Jenny Zhu Posted in business, China, cultural differences, interviews, management, Uncategorized，
02 March 2009
1

The title of this post happens to be the theme of the Suixuntong interview series.  It will feature conversations with foreign managers in China who face dual challenges of management and culture.

The inspiration came from enlightening conversations in restaurants and bars where friends (and often my own bosses) speak candidly about their frustration, bewilderment and joy of being a manager in China. These real life stories tell the most down to earth experiences and carry practical and overreaching implications for fellow managers (and employees).

I have known and worked for some great foreign managers in China. They are able to build and lead effective teams because they work particularly hard to understand their staff’s perception, action and motivation shaped by the socio-cultural context. They are the ones who go beyond than just saying ‘why don’t my staff get it’. They observe, communicate and reflect to find a better approach.  I hope their stories will help you get the most out of your team in China. And I look forward to hearing your stories in the interview. Feel free to contact me  jennyzhu at suixuntong.com

Managing Your Team in China: Interview with Peter Bomer

Jenny Zhu Posted in business, China, cultural differences, interviews, management，Tags: , , ,
02 March 2009
3

peter1

[podcast http://jennyzhu.com/podcasts/SXT001_Pete...[/podcast]

Aside from theories and methodologies, what does it actually take to be an effective manager in China? If you have lived and worked here for 2 months, you already have fascinating and resonating stories more incisive and in-depth than books on the subject generally tell.

In this inaugural podcast, I talk to Peter Bomer. Peter was the Marketing Director at Diageo (China) and the Asian Pacific Marketing Director for the Johnnie Walker brand. In 2006, he started his own radio production company Soulfire which now broadcasts in 5 major cities in China.

Peter has always believed that an effective team starts with ownership. But this basic concept meets unexpected setbacks in his team. Listen in on what Peter did to nurture ownership and get the most out of his team members. Caution: it will take a lot more work than you think or would like.