3. 5. The top 300bureaucrats will rally behind Xi’s reforms and these bold new programs, backingthe central government while bringing these ambitions to their provincialgovernments and setting parallel growth goals at home. Detailed plans forreform and accelerated growth will be set, and then promptly executed, ingeographies across China. We expect the tier three and four markets torally again this year, growing faster than tier one and two cities.
4. The Cnzz.com report also discusses the problem of the 'free-to-play' business model that's prevalent in China's online game sector. While many games companies in the U.S., for example, charge subscription fees, most Chinese games utilize the free-to-play model, which allows players to try out a game without paying. The longer players stay in the game, the more likely they will be to pay for in-game items to move up into higher levels of play. But that also means that people who spend the most money are the best performers.
6. Rounding out the top-performing sectors of 2014 was an unlikely pair: tech (+16%) and consumer staples (+13.2%)—the most aggressive and most defensive areas of the market, running side-by-side toward the finish line, with confounded spectators struggling to concoct a narrative for this. Why would the least cyclical sectors—healthcare, staples and utilities—lead the markets in a year in which unemployment plummeted and GDP growth gained momentum? Much to the chagrin of the pundit class, sometimes there are no satisfying answers. To quote Kurt Vonnegut: