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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 106

China Business Intelligence No. 106

Samsung Economic Research Institute Beijing Office

Feb. 25, 2009

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I. Industry

Expectations are high in many parts of China for large-scale investment in theme parks. The majority of theme parks, however, simply imitate domestic and oversea models. Growth in theme parks in China is marred by managements' lack of understanding in theme park operation. Chinese theme parks do not have enough industrial support to achieve economies of scale. Those who are willing to invest in theme parks should therefore consider risk factors very carefully.

II. Economy

As the global financial crisis spreads to the real economy, and exports rapidly lose steam, the Chinese government will likely expand intervention as a way to boost the real economy. The mechanism behind the Chinese government's response to the crisis is different from other countries. Fortunately, Chinese banks are financially sound and government reserves are so abundant. China is carrying out a variety of multi-dimensional economy-boosting measures through close cooperation between central and local governments. China's stimulus plan focuses on the following three areas - macroeconomics, industry, and the corporate sector.

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