Haidilao International Holding Ltd macroeconomic overview PDF

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Haidilao International Holding Ltd macroeconomic overview Macroeconomic objectives: - Full employment - Price stability - High, sustainable growth - Equilibrium balance of payments Full employment As of June 30 2020, 935 chain restaurants in China, Singapore, US, South Korea, Japan, Canada, United Kingdom, Malaysia, Vietnam, Indonesia and Australia. Majority of the chains are in mainland china hence we should focus on China’s employment/unemployment level. Perhaps HK as well as it made its public offer there Brief timeline of business activities 1994 2012 2013 Entered conceptio 1st outlet US n outside mainland markets china SG

2014 Entered South Korea markets

2015 Entered Taiwan and Japan markets

2017 Entered HK markets

2018 IPO in HK, aimed for 700 mil, raised nearly 1 Billion

Since its conception in 1994, the Chinese labour force has grown steadily from approx. 640 mil to 784 mil in 2016. It decreased a little subsequently and stands at 778 mil in 2020. https://data.worldbank.org/indicator/SL.TLF.TOTL.IN? end=2020&locations=CN&start=1990&view=chart In 2019, the unemployment rate in urban areas of China ranged at about 3.6 percent. According to IMF projections, the unemployment rate will increase to 3.8 percent in 2020 due to the impact of the coronavirus COVID-19 pandemic and drop again to 3.6 percent in 2021 Price stability Consumer Price Index CPI in China averaged 106.10 points from 2016 until 2020, reaching an all time high of 113.70 points in February of 2020 and a record low of 101.10 points in January of 2016. Price stability in china is an issue, it experienced massive deflation from about 30% in 1994 to -3% in 1999. Beginning 2000, inflation rates in china fluctuate between -3% to 9%. It is observed that periods with negative inflation/deflation coincided with issues such as AFC(1997), SARS(2002/03), GFC(2009), COVID(approaching 0, 2019 onwards). https://tradingeconomics.com/china/inflation-cpi

Inflation rate – 1994 to 2020

Growth https://tradingeconomics.com/china/gdp From 1994 till present, China has experienced significant growth, its GDP has steadily increased due to factors like: large-scale capital investment (financed by large domestic savings and foreign investment) and rapid productivity growth. Additionally, due to its huge land size and population, the continued growth of china is to be expected in the coming decades as the country gets more developed. Equilibrium balance of payments BOP for 1st half and 2nd quarter of china : https://www.safe.gov.cn/en/2020/0925/1754.html BOPs are critical as it influences the formulation of national and international economic policies. Eg: one country might adopt policies specifically designed to attract foreign investment in a particular sector, while another might attempt to keep its currency at an artificially low level in order to stimulate exports and build up its currency reserves. The impact of these policies is ultimately captured in the balance of payments data. As of yet, the BOP for 2020 is incomplete when the remaining data is released, we can further analyze and hence attempt to predict what policies might be introduced and how it affects the economy and ultimately, stock prices for the firm....