MADE IN CHINA An actuary s perspective on living and working in 21 st Century China

Transcription

1 1 MADE IN CHINA An actuary s perspective on living and working in 21 st Century China Alain Peddle Deputy CEO at Ping An Health, China PG 1 General Manager : China (Discovery Limited)!!

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3 Family pic

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7 Qingdao People: 9m GDP: 178bn USD GDP growth: 7.5%

8 Hangzhou People: 13m GDP: 198bn USD GDP growth: 8.0%

9 Chongqing People: 17m GDP: 306bn USD GDP growth: 9.5%

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11 Ping An Group s Forbes 500 Ranking Registered customers ~180m Registered internet users >485m Revenue >US$150bn Market capitalization >US$160bn Sales agents ~1.4m BrandZ Top 100 most valuable global brands No. 1 Insurance brand

12 Annual disposable income per capita distribution (% of total population, grey income-adjusted, constant 2015 prices) High (>Rmb200,000) Upper middle (Rmb67, ,000) Lower middle (Rmb13,000 67,000) 20 Low (<Rmb13,000) SOURCE: The Economist Intelligence Unit

13 China, US and India The new Big 3 Top ten economies in 2050 at market exchange rates Nominal GDP, (US$bn) US (1) 17,419 China (1) 105,916 China (2) 10,335 US (2) 70,913 Japan (3) 4,606 India (3) 63,842 Germany (4) 3,865 Indonesia (4) 15,432 UK (5) 2,951 Japan (5) 11,367 France (6) 2,835 Germany (6) 11,334 Brazil (7) 2,346 Brazil (7) 10,334 Italy (8) 2,149 Mexico (8) 9,826 India (9) 2,055 UK (9) 9,812 Russia (10) 1,861 France (10) 9,671 Economy moves up rankings Economy moves down rankings SOURCE: The Economist Intelligence Unit Economy remains at rankings

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15 When Frida Cai left Beijing to study abroad in 2013, China s financial tech boom was just beginning. She used a debit card for her big expenses and carried cash for everyday spending. By the time she came back, just three years later, everything had changed. I tried to buy a watermelon from a street seller, she recalls, and he told me that he only took mobile payments through the WeChat app. Ms Cai now says she cannot even remember the last time she got cash out of an ATM, but it was more than a year ago. July 17, 2018 Source: Why millennials are driving cashless revolution in China, Financial Times, 2018/03/30

16 CNBC

17 2017 $25.4 billion 2016 $17.8 billion 82% of sales on mobile. 430 million active shoppers 75% are under 35 More than double U.S. e-commerce holidays Black Friday + Cyber Monday >1 billion transactions in 24-hours >657 million packages delivered SOURCE: Alibaba's Singles' Day: What We Know About The World's Biggest Shopping Event Forbes online; Frank Lavin NOV 6, 10:28 PM Singles' Day Sales Scorecard: A Day In China Now Bigger Than A Year In Brazil; Forbes online; Frank Lavin NOV 15, 04:14 AM

18 Source: Business Insider

19 In e-commerce and mobile payments, it has already overtaken America China s tech sector as % of United States 2018 or latest Five years ago 1, Twice the level of the United States E-commerce transition value Same level as the United States Foreign sales of listed tech firms Capital expenditure and R&D of listed tech firms Market value of listed internet stocks Venture capital funding 20 0 Number of AI professionals Digitisation index for non-tech industries Market value of listed tech stocks Value of unicorns (start-ups valued at over $1bn) AI papers cited by third parties 1,068% mobile payments SOURCE: AllianceBernstein: Bloomberg: CB Insights: Goldman Sachs; McKinsey: The Economist

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21 Gang of six Market capitalisation 1, $bn United States China 1 At March 14th 2018 SOURCE: Thomson Reuters, Economist.com

22 Volume Transactions Rate of of x x per x engagement users engagement Value per engagement

23 Data ~ Capital

24 Supply services and cash-in Enhance competiveness Biometrics Boost efficiency Big data Cut costs Improve experience Cloud Strengthen risk management Artificial Intelligence Financial services ecosystem Real estate ecosystem Blockchain Auto services ecosystem Healthcare services ecosystem SOURCE: From Ping An to Platform: Technology Innovation for growth; Ping An Group; Nov 2017

25 Top down Target setting Self Improvement

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27 Ingredients necessary for super-fast technological innovation? Very well educated millennials; A deeply ingrained culture of innovation and entrepreneurship; Support from the state, keen to regain global supremacy; Millennials whose use of smart phones makes US consumers look lax; An enormous, homogenous, domestic population; Commensurately enormous amounts of data, with swift feedback loops

28 28 MADE IN CHINA An actuary s perspective on living and working in 21 st Century China PG 28 Alain Peddle Deputy CEO at Ping An Health, China General Manager : China (Discovery Limited)