Business / Economy

Nation's CEOs more upbeat on growth than peers, survey says

By Hu Yuanyuan (China Daily) Updated: 2014-03-26 08:31

The per capita net income of rural residents expanded 9.3 percent in real terms last year, and the income gap between urban and rural residents shrank.

These trends show that regional disparities are shrinking and opportunities for growth are emerging in the nation's vast hinterlands, according to Nally.

Whereas last year, uncertain growth and inflation topped the list, now CEOs see the increasing tax burden (70 percent) as the most significant threat to growth, followed by rising labor costs (67 percent) and volatile capital markets (62 percent). Excessive regulation is also one of the top concerns.

According to Nally, the shift in concerns reflects the tentative stabilization of the global economy, as well as the readjustment of the Chinese economy toward consumption-led growth and away from a reliance on investment and exports.

"CEOs will be looking to both drive efficiencies and contain costs, without losing sight of growth opportunities," he said.

The top economic and policy threats mentioned by Chinese CEOs are slow growth in developed economies, a slowdown in high-growth markets and excessive regulation.

As to business threats, bribery and corruption, rising labor costs in high-growth markets and high and volatile raw materials prices are the top three concerns.

Chinese CEOs' business focus is mostly domestic. Compared with their global peers, they are the least likely to be looking for new geographic markets for growth - 5 percent compared with the global average of 14 percent - the survey showed.

They were also the least likely to have completed a cross-border merger or acquisition year - 9 percent compared with 17 percent of CEOs globally.

The reason for a strong domestic focus, Nally said, is the ongoing reform and opening-up of the Chinese economy, which will bring both opportunity and risk.