Cover Story

Big Data??s Pain Points

The concept of big data has been a hot topic in China since 2011， but at present the big data industry in China is still in the exploratory research stage. There are still a limited number of big data applications that can be put into practical use， and companies that conduct in-depth research are few and far between. This sector is still waiting for the emergence of “killer” applications which can produce fundamental change in the financial， health care， retail， manufacturing and other industries.

The liberalization of public datacontrolled by governments is the key to activate the sector. It means data resources can achieve free flow between the government and society， which is a major change of government action.

Commodities Rebound Amid Uncertainty

Over the past three months， short squeezes on commodities such as steel have driven up prices of copper， coal and other commodities. The prices of iron ore， coal， aluminum and other commodities depend heavily on investment demand， and prices of precious metals such as gold which act as anchors of global liquidity have seen corresponding increases along with loose monetary policy of the euro and Japanese yen， as well as declining expectations of a U.S. Federal Reserve interest rate hike.

However， many futures investors believe this to be an impulse-type market and are pessimistic about its prospects to continue moving upward. The steel and coal industries are currently undergoing supply side reform， which the market generally believes reduces already idle or low capacity without changing potential supply.

Chen Xuefengs Cloudy Coal Empire

A man who built Henan Province into a coal empire， and once saw his rivals in the coal industry put behind bars one by one， former Henan Provincial Party Standing Committee Chen Xuefeng was himself put under investigation in January this year on suspicion of serious disciplinary violations.

A former insider of Yongcheng Coal and Electricity Group， of which Chen served as Party Secretary from 2000 to 2008， reported that Chen had participated in a huge transfer of benefits during his time at the helm of the company. A task force assigned to investigate Yongcheng Group has already taken away over 10 individuals from associated enterprises for investigation， among which at least three are still under detention.

Chinese Companies Set Sights on UK Auto Manufacturers

The UK auto industry experienced significant turbulence after the global financial crisis in 2008. Subsequent “laissez faire” industrial policy spurred the emergence of thousands of small and exquisite technology manufacturers and allowed the UK auto industry to take the lead globally in such aspects as racing vehicle engines， fuel tanks， and power. However， this process also exposed shortcomings in many links of the production chain. For example， during a declining economic cycle， these small manufacturers could not cope with reinvestment， which led to a huge industrial investment gap in 2014.

In this context， Chinese companies jumped in to acquire or invest in a number of UK auto companies. As the UK car industry recovers， these investments are gradually seeing returns.

Vanke-Baoneng War Enters New Terrain

The cutting-in of state-owned Shenzhen Metro Group Co. pushed the ongoing battle between China Vanke Co. Ltd. and Baoneng Group for control of Vankes shares into a new stage. If Vanke and Shenzhen Metros restructuring goes ahead， Shenzhen Metro is likely utilize a slim advantage to overcome Baoneng and become Vankes largest shareholder. However， there are many variables in the restructuring， one of which is Shenzhen Metros attitude. The second variable is whether Baoneng， Vankes current largest shareholder， will vote to approve the restructuring plan.

Vankes shareholders meeting agreed to continue suspending trading for three months， giving the companys management a crucial buffer. Which way its battle with Baoneng goes will depend on what kind of restructuring plan Vankes board of directors comes up with in the next three months.