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OPINION

Chinese Companies Looking to the Long Term, Survey Finds

Domestic firms may see themselves as long-term focused, but most still face pressure to deliver strong results by the year or quarter. Photo:Visual China
Domestic firms may see themselves as long-term focused, but most still face pressure to deliver strong results by the year or quarter. Photo:Visual China
Chinese companies are largely long-term oriented, but long-term behavior in China can be deterred by performance pressures from executives, boards of directors, investors and competitors. Promoting long-termism in financial markets has long been a topic of discussion, with much of the debate focusing on whether or not there are notable benefits. This argument has become particularly relevant as China moves to a ‘new normal’ state of sustainable, slower economic growth and a more proactive role on the world stage.

CPPIB, Hillhouse Capital Group, Caixin Global & Caixin Insight Group undertook the first-ever research project to determine how Chinese companies view long-termism. The report surveyed more than 180 Chinese companies, both state owned and private, in 28 industries comprising a total market capitalization of more than $2.41 trillion.

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