• Journal of Korea Trade
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• v.23 no.7
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• pp.147-155
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• 2019

Purpose - As the U.S.-China trade war has become considerably worse, the Chinese government is considering applying non-tariff barriers to trade, especially local contents rule. The main purpose of this research is to check whether it is suitable for Korean investors to invest in the current Chinese capital market. Design/methodology - In order to check the stability of the recent Chinese capital market, we investigated the behavior of foreign equity investment (including Korean equity investment) in the Chinese capital market after China announced the Shanghai-Hong Kong Stock Connect (SH-HK Connect). In this paper, we researched whether international portfolio investment would or would not contribute to an increase the volatility of an emerging market's stock market (Chinese capital market) when foreign investors make investment decisions based on the objective of short-term gains by rushing into countries whose markets are booming and fleeing from countries whose markets are falling. Findings - The empirical results indicate that foreign investors show strong, negative feedback trading behavior with regard to the stock index of the Shanghai Stock Exchange (SSE), and when the performance of foreign investors in the Chinese stock market was fairly good. Also, we found evidence that the behavior of foreign investors significantly decreased volatility in SSE stock returns. Consequently, the SH-HK Connect brought on a win-win effect for both the Chinese capital market and foreign investors. Originality/value - It appeared that the Chinese capital market was very suitable for Korean investors after the China's declaration of the SH-HK Connect. However, the win-win effect was brought on by the Chinese government's aggressive capital control but the capital controls could possibly cause financial turmoil in the Chinese capital market. Therefore, Chinese reform in industrial structure and the financial sector should keep pace with suitable capital control policies.

• Journal of Distribution Science
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• v.14 no.8
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• pp.35-44
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• 2016

Purpose - This study aims to understand the relationship between Chinese local SNS usage and social capital building through Chinese international students in South Korea. A research model that illustrates the relationship between the SNS usage (i.e., intensity, communication and social capital building is proposed. Based on the analysis, this study will provide responses to the question of if SNS really presents the danger of trapping international consumers in their local comfort zone or enhance social capital for the users. Research design, data, and methodology - The survey questionnaire is circulated among the WeChat (a Chinese local SNS) users who are the Chinese international students studying in South Korea. The collected data is analyzed by structural equation method using SPSS and AMOS. Results - Proposed hypotheses of the positive relationships between the attachment of SNS use and both individuals' bridging and bonding social capital are supported. It's also supported that (1) interpersonal communication, (2) interpersonal communication with old friends, and (3) interpersonal communication for making new friends on SNS positively influence individuals' bridging social capital. Conclusions - This paper demonstrates the importance of intensity of WeChat use and interpersonal communication that impact Chinese international students' bridging and bonding social capital on WeChat.

• STI Policy Review
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• v.7 no.1
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• pp.66-86
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• 2016

This paper discusses government-backed venture capital as a science, technology and innovation (STI) policy instrument from the Chinese perspective. China aspires to overhaul its growth model by vigorously promoting technological innovation and entrepreneurship. Like many other countries, however, funding gaps constrain new technology ventures in the early stages of venture development. To plug this gap, China attempts to use government-backed venture capital as a policy instrument. Super-size central government-backed VCs were set up and dozens of similar schemes are in operation at local levels. This paper provides a case study of such government-backed venture capital schemes in China. It documents the background conditions explaining the country's need for public venture capital, describes the distinct features of program design in such schemes, and assesses the impact of government-backed venture capital.

• Asia-Pacific Journal of Business
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• v.12 no.1
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• pp.101-120
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• 2021

Purpose - As the research of Chinese unicorn companies is still in early stages, this paper aims to investigate the factors that influence the success of Chinese IT unicorns. Design/methodology/approach - This study is conducted as a single case study and used various sources such as interviews, internal data, press releases, IR data, etc. to enhance the reliability and validity. Findings - First, the characteristics of the start-up team, social capital, and strategies as internal factors affect the success of unicorns. Among them, the more Guanxi in social capital factors, the greater the possibility of growing into an IT unicorn company. Second, the role of venture capital and geographical location have been identified that two factors affect the success of unicorns. In the role of venture capital, it has been confirmed that the world's top-level venture capital company or a company that has been invested by "BATJ" is more likely to grow into a unicorn company in China. Research implications or Originality - This paper distinguishes between internal and external factors to explain the factors that affect the growth of unicorn companies, which lays the foundation for future research, such as the exploration of the unicorns and the development of new variables.

• The Southeast Asian review
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• v.23 no.3
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• pp.93-134
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• 2013

This paper examines the formation and evolution of Chinese society in Penang over 155 years. Since it was ruled by the British in 1786, many immigrants gathered in Penang. Among them, much of the population was Chinese. It could be offered to clarify the historical process of the development of Chinese society in Penang by paying attention to the three items - opium, tin, and rubber. All the conflict and friction over these products were main causes of prosperity and decay for the Chinese society in Penang. In the early 19th century, the Chinese colossus could get their capital accumulation by taking advantage of 'opium farm'. They amassed their fortune through development of tin mines newly discovered in Perak during the late 19th century. It was the age of Chinese Colossuses deeply connected with Chinese secret societies. After the rubber plantations were developed by the Western capital in the early 20th century, the age of Chinese Colossuses was gradually fallen down. From this point of view one can be provided a new perspective on the history of Penang and the Chinese society of its own. The three scopes for history enable us to make a new interpretation about the issue of stratification within Chinese society in Penang. Especially this research focused on the economic characteristics of Chinese secret societies as 'social capital', and on the identity conflicts between traditional Strait Chinese(peranakan) elite and emerging sinkeh Chinese merchants. The identity problem between 'Laokeh' and 'Sinkeh' in the early 20th century was intentionally exaggerated by modern researchers. Their conflicts seems to be caused by different economic interests rather than identity. We need to consider again the rise and fall of Chinese society in Penang with flexible thinking.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.3
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• pp.726-734
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• 2021

Comparative analysis of the nursing students' empathy ability, positive psychological capital, and interpersonal competence of Korea and Korean-Chinese in China was conducted. Data were collected from160 survey questionnaires from Nov.1 to Dec 30, 2019, from Korea and China. The data use frequency and percentage, mean, independent t-test, and Pearson's correlation coefficient were analyzed. The results showed that Korean nursing students' empathy, positive psychological capital, and interpersonal competence scores were higher than Korean-Chinese nursing students in China. The empathy ability of Korean nursing students had no significant correlation with positive psychological capital and interpersonal competence. The empathy ability of the nursing students of Korean-Chinese had a significant positive correlation with the positive psychological capital and interpersonal competence. The higher the empathy ability, the higher the positive psychological capital and higher the interpersonal competence. Several intervention programs will be needed to increase the empathy ability, positive psychological capital, and interpersonal relationship of Korean-Chinese nursing students.

• Journal of the Economic Geographical Society of Korea
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• v.13 no.4
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• pp.641-662
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• 2010

Through the comparative studies on Korean and Chinese ethnobanks in the U.S., this research finds the difference in the social capital between Korean and Chinese American economy and reinterprets the social capital in overseas Chinese. In many ethnic studies, the ethnobanks in the U.S. are thought as the main drive of the economic prosperity in the ethnic communities. For the success of these ethnobanks, the relationship banking of these ethnobanks are contrasted with the arms-length banking of the mainstream U.S. banks. However there are the differences both in performance and business strategies even among different ethnobanks. Contrary to the Korean ethnic banks having much portion of business loans, Chinese ethnic banks have stressed real-estate loans in their loan portfolio. This research regards the differences of business strategies and performance of these ethnobanks as the result of the different social, cultural contexts in each ethnic community. From these finings, we can improve the understanding of the concept of social capital in overseas Chinese economy.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1153-1162
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• 2021

The innovation of enterprises allowed firms to promote technological innovation as an important choice to improve sustainable competitiveness. This study aims to investigate the relationship between absorptive capacity and innovation performance of Chinese high-tech enterprises and focuses on the mediating role of innovation culture in high-tech enterprises. Data came from surveying high-tech enterprises in China, and the reliability analysis, factor analysis, and correlation analysis, path analysis (SEM) were analyzed using SPSS23, AMOS. The results show that intellectual capital composed of human capital, structural capital, and relational has a significant impact on acquisition performance; intellectual capital is composed of human capital; structural capital has a significant influence on innovation performance; and absorptive capital has a significant impact on innovation performance. In addition, innovative culture plays a partial mediating role between absorptive capacity and innovation performance. The findings of this study suggest that, to ensure the better absorption and operation of knowledge, high-tech enterprises can accumulate more knowledge, promote the transformation of knowledge into technology, and strengthen the capability of knowledge absorptive capacity, and at the same time, create an innovation culture atmosphere and encourage employees to develop new products to achieve enterprise goals in order to promote the improvement of innovation performance.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.70
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• pp.109-133
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• 2016

As for Korea, China is very important because of an advantageous geological accessibility and high economic dependency. Therefore, the Korean government announced its plan to establish 5billion dollars' investment from Greater China (including Hong Kong and Singapore) and the government has put much effort into accommodating more Chinese investment by diversifying investment channels from Greater China. Under this major Chinese investment boom, it is crucial to conduct in-depth research on accommodation of Chinese investment and create a plan to establish Chinese capital investment that will benefit both the investing country and the countries receiving the investment. Hence, the present study analyzed current trends in Chinese investment for the Korean market, focusing on the stimulation methodology for establishing greater investment from China. To this end, this paper examined various investment characteristics of Chinese investors for the Korean market by researching investment development levels on different time lines and analyzing Chinese investment in Korea for a variety of industries. Through the research, the following study derived a more effective strategy to accommodate greater Chinese capital investment. There has been a worldwide increase in the number of letter of credit cases involving fraud recently. It may happen that the documents which are tendered to the banks under a documentary credit are forged, altered or fraudulent. Banks assume no liability or responsibility for the form, sufficiency, accuracy, genuineness or falsification of any documents.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.27-40
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• 2019

The study examines the effects of growth opportunities, debt maturity and liquidity risk on leverage, making use of a large panel of Chinese listed firms. Research on capital structure has broadened its scope from a single capital structure decision (the debt/equity choice) to various attributes of the debt in firms' capital structure. We use the system Generalized Method of Moments estimator to control for unobserved heterogeneity and the potential endogeneity of regressors. We find a negative relationship between growth opportunities and leverage. Further, we find that while the proportion of short-term debt attenuates the negative effect of growth opportunities on leverage, it negatively affects leverage as predicted by the liquidity risk hypothesis. When we distinguish between state owned firms and private controlled firms, we find evidence that these effects are only relevant to private controlled firms. However, our analysis indicates that the economic implication of liquidity risk effect is much lower for Chinese firms than that observed in the literature for US firms. Our study suggests that these differences can be explained by differences in the institutional environment in which firms operate. This finding related to Diamond's (1991) liquidity risk hypothesis extends our understanding of the relationship between liquidity risk and the debt maturity choice.