Page 362 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
professionalized sports in China. Thus it is expected that under Chinese ownership and Chinese consortium
the reform of soccer would serve as a pilot scheme for China Media Capital (CMC) owns a minority stake in
other sports to follow. In addition, China is of course well Manchester City (McNiece).
aware that soccer is a sport with global popularity and
influence, highly intertwined with national pride. But Sports related spending by Chinese consumers in the
the Chinese fans have experienced disappointed time first half of 2017 totaled $17.23 trillion, the NBS said. In
and again by the performance of their men’s national order to meet its target, China will need to add 700 million
team. Thus the talk of becoming a soccer super power square meters of sports facilities, BOC International
has also become a natural part of the “Chinese dream” said. The General Administration of Sport set up a fund
narrative proposed by President Xi (Liu). to help pay for the construction costs, as companies
begin submitting tender proposals to partner with local
China is a global sports powerhouse, with a governments on developing the sport towns. Stadium
rising domestic sports market and the eyes of the builder Lander Sports Development Co, which in April
international sports industry trained upon it and its 2017 scrapped a plan to buy English Premier League
1.37 billion citizens. Domestic leagues such as the soccer club Southampton, said that it had signed an
Chinese Basketball Association and Chinese Super agreement to develop a 4 billion yuan sports town with
League are professionalizing, major events like the the city of Pengzhou in Sichuan Province. Palm Eco-Town
2022 Winter Olympics are being successfully bid for, Development Company, a principal sponsor for West
and international teams, leagues and events are busy Bromwich Albion F.C., also announced in 2017 that it was
laying foundations in the country. Soccer, for example, looking to build five or six “West Bromwich Albion Sports
is now part of the school system in the country, and as Towns” in Guizhou Province. The company revealed in
the report shows, the push toward more active lifestyles October 2017 that it had already signed a deal with the
is beginning to have a positive impact. A host of new local government on its first development (Ye).
facilities and initiatives are underway to help increase
participants and create fans. According to Nielsen, 59 Chinese President Xi Jinping told FIFA that China
percent of the total urban population representing would bid for the rights to host a World Cup. Beijing is
432 million individuals claims to be sports fans. Of that host city for the 2022 Winter Olympics, while Shanghai
number, 61 percent are men and 31 percent are women staged the seven-a-side rugby“Champion of Champions”
(Nielsen). China’s sports industry could be about to come tournament in October 2017. But some question
of age, as growing public enthusiasm for participatory whether the projections on the sport industry’s growth
athletic events coupled with the government’s efforts to are over-hyped. Among the 43 listed sport companies
promote sport awareness are seen as powerful catalysts in China, only nine have seen share price gain in 2017,
for a sector still at an early stage of development by while nine have been suspended from trade. The China
global standards. Bank of China (BOC) International Securities Index (CSI) sport index, which tracks 50 listed
published a report led by Analyst Wang Xin, saying that companies that provide sport services and products, has
the sports industry has a bright outlook. “In comparison, fallen 20.9 percent in 2017. “In the long run, the sports
China’s number of fitness venues is only 1/27 that of the industry will sustain steady growth as the industry goes
U.S.,” Xin said. Spending on sport-related entertainment through reform and consumption in the sector rises. The
goods and services grew 17.1 percent in the first half prospect of the sector could potentially become rosier,”
of 2017, outpacing 10.4 percent growth in broad Chuancai Securities said. BOC International is also
consumer spending during the period, according to optimistic on growth in the sector, citing policy support,
NBS data released in June (Ye). China’s Ambassador especially in the run up to 2020 Winter Olympics. The
to the United Kingdom, Liu Xiaoming, urged British investment bank cited Hong Kong-listed Beijing Sports
companies to invest in China’s sports industry, which and Entertainment Industry Group among potential
he likened to a “gold mine.” The U.K. is experienced in beneficiaries, noting that the company will build 50 air
running sports facilities, sports health services, sports dome stadiums in 2017 and 250 in 2018. The company
medicine and other related undertakings. These are plans to build 1,000 dome structures ahead of the
the areas where China and the U.K. can match up our games, as part of the government’s efforts to have
needs and engage in closer cooperation.” Liu affirmed 1,450 winter sports venues in place nationwide by 2020.
that the Premier League could expect further Chinese Beijing’s shift toward viewing sports as an industry in
investment. Top-flight club West Bromwich Albion is recent years has been a catalyst for growth, according
362
professionalized sports in China. Thus it is expected that under Chinese ownership and Chinese consortium
the reform of soccer would serve as a pilot scheme for China Media Capital (CMC) owns a minority stake in
other sports to follow. In addition, China is of course well Manchester City (McNiece).
aware that soccer is a sport with global popularity and
influence, highly intertwined with national pride. But Sports related spending by Chinese consumers in the
the Chinese fans have experienced disappointed time first half of 2017 totaled $17.23 trillion, the NBS said. In
and again by the performance of their men’s national order to meet its target, China will need to add 700 million
team. Thus the talk of becoming a soccer super power square meters of sports facilities, BOC International
has also become a natural part of the “Chinese dream” said. The General Administration of Sport set up a fund
narrative proposed by President Xi (Liu). to help pay for the construction costs, as companies
begin submitting tender proposals to partner with local
China is a global sports powerhouse, with a governments on developing the sport towns. Stadium
rising domestic sports market and the eyes of the builder Lander Sports Development Co, which in April
international sports industry trained upon it and its 2017 scrapped a plan to buy English Premier League
1.37 billion citizens. Domestic leagues such as the soccer club Southampton, said that it had signed an
Chinese Basketball Association and Chinese Super agreement to develop a 4 billion yuan sports town with
League are professionalizing, major events like the the city of Pengzhou in Sichuan Province. Palm Eco-Town
2022 Winter Olympics are being successfully bid for, Development Company, a principal sponsor for West
and international teams, leagues and events are busy Bromwich Albion F.C., also announced in 2017 that it was
laying foundations in the country. Soccer, for example, looking to build five or six “West Bromwich Albion Sports
is now part of the school system in the country, and as Towns” in Guizhou Province. The company revealed in
the report shows, the push toward more active lifestyles October 2017 that it had already signed a deal with the
is beginning to have a positive impact. A host of new local government on its first development (Ye).
facilities and initiatives are underway to help increase
participants and create fans. According to Nielsen, 59 Chinese President Xi Jinping told FIFA that China
percent of the total urban population representing would bid for the rights to host a World Cup. Beijing is
432 million individuals claims to be sports fans. Of that host city for the 2022 Winter Olympics, while Shanghai
number, 61 percent are men and 31 percent are women staged the seven-a-side rugby“Champion of Champions”
(Nielsen). China’s sports industry could be about to come tournament in October 2017. But some question
of age, as growing public enthusiasm for participatory whether the projections on the sport industry’s growth
athletic events coupled with the government’s efforts to are over-hyped. Among the 43 listed sport companies
promote sport awareness are seen as powerful catalysts in China, only nine have seen share price gain in 2017,
for a sector still at an early stage of development by while nine have been suspended from trade. The China
global standards. Bank of China (BOC) International Securities Index (CSI) sport index, which tracks 50 listed
published a report led by Analyst Wang Xin, saying that companies that provide sport services and products, has
the sports industry has a bright outlook. “In comparison, fallen 20.9 percent in 2017. “In the long run, the sports
China’s number of fitness venues is only 1/27 that of the industry will sustain steady growth as the industry goes
U.S.,” Xin said. Spending on sport-related entertainment through reform and consumption in the sector rises. The
goods and services grew 17.1 percent in the first half prospect of the sector could potentially become rosier,”
of 2017, outpacing 10.4 percent growth in broad Chuancai Securities said. BOC International is also
consumer spending during the period, according to optimistic on growth in the sector, citing policy support,
NBS data released in June (Ye). China’s Ambassador especially in the run up to 2020 Winter Olympics. The
to the United Kingdom, Liu Xiaoming, urged British investment bank cited Hong Kong-listed Beijing Sports
companies to invest in China’s sports industry, which and Entertainment Industry Group among potential
he likened to a “gold mine.” The U.K. is experienced in beneficiaries, noting that the company will build 50 air
running sports facilities, sports health services, sports dome stadiums in 2017 and 250 in 2018. The company
medicine and other related undertakings. These are plans to build 1,000 dome structures ahead of the
the areas where China and the U.K. can match up our games, as part of the government’s efforts to have
needs and engage in closer cooperation.” Liu affirmed 1,450 winter sports venues in place nationwide by 2020.
that the Premier League could expect further Chinese Beijing’s shift toward viewing sports as an industry in
investment. Top-flight club West Bromwich Albion is recent years has been a catalyst for growth, according
362
