1

PG 1

MADE IN CHINAAn actuary’s perspective on living and working in 21st Century China

Alain Peddle

Deputy CEO at Ping An Health, China

General Manager : China (Discovery Limited)

!!

Family pic

Qingdao

People: 9m

GDP: 178bn USD

GDP growth: 7.5%

Hangzhou

People: 13m

GDP: 198bn USD

GDP growth: 8.0%

Chongqing

People: 17m

GDP: 306bn USD

GDP growth: 9.5%

Source: http://www.sustainabletransport.org/archives/6317

Ping An Group’s Forbes 500

Ranking

96

39

242

383

201812 14

128

41

181

13 171611

328

152010

29

+354

Revenue

>US$150bn

Market

capitalization

>US$160bn

Sales agents

~1.4m

BrandZ Top 100 most

valuable global brands

No. 1 Insurance

brand

Registered customers

~180m

Registered internet

users

>485m

(% of total population, grey income-adjusted, constant 2015 prices)

SOURCE: The Economist Intelligence Unit

37

11

53

55

7

20

15

2015 2030

3High (>Rmb200,000)

Upper middle (Rmb67,000 – 200,000)

Lower middle (Rmb13,000 – 67,000)

Low (<Rmb13,000)

Annual disposable income per capita distribution

China, US and India – The new Big 3

Top ten economies in 2050 at market exchange rates

Nominal GDP, (US$bn)

SOURCE: The Economist Intelligence Unit

2014 2050

US (1)

Brazil (7)

China (2)

1,861

France (6)

Japan (3)

Germany (4)

Italy (8)

2,951UK (5)

3,865

India (9)

Russia (10)

17,419

10,335

4,606

2,835

2,346

2,149

2,055

Japan (5)

China (1)

US (2)

Brazil (7)

India (3)

Germany (6)

Indonesia (4)

Mexico (8)

UK (9)

France (10)

105,916

63,842

70,913

15,432

11,367

11,334

10,334

9,826

9,812

9,671Economy moves down rankings

Economy moves up rankings

Economy remains at rankings

When Frida Cai left Beijing to study abroad in 2013, China’s financial

tech boom was just beginning. She used a debit card for her big

expenses and carried cash for everyday spending. By the time she

came back, just three years later, everything had changed. “I tried to

buy a watermelon from a street seller,” she recalls, “and he told me

that he only took mobile payments through the WeChat app.” Ms Cai

now says she cannot even remember the last time she got cash out of

an ATM, but it was “more than a year ago”.

July 17, 2018

Source: Why millennials are driving cashless revolution in China, Financial Times, 2018/03/30

CNBC

SOURCE: Alibaba's Singles' Day: What We Know About The World's Biggest Shopping Event Forbes online; Frank Lavin NOV 6, 2016 @ 10:28 PMSingles' Day Sales Scorecard: A Day In China Now Bigger Than A Year In Brazil; Forbes online; Frank Lavin NOV 15, 2016 @ 04:14 AM

More than double U.S. e-commerce holidays

Black Friday + Cyber Monday

82% of

sales on

mobile.

430 million

active shoppers

75% are under 35

2017 | $25.4 billion 2016 | $17.8 billion

>1 billion transactions in 24-hours

>657 million packages delivered

Source: Business Insider

China’s tech sector as % of United States

SOURCE: AllianceBernstein: Bloomberg: CB Insights: Goldman Sachs; McKinsey: The Economist

2018 or latest Five years ago

180

160

120

80

0

1,080

20

40

60

100

140

Value of

“unicorns”

(start-ups

valued at

over $1bn)

AI papers

cited by

third

parties

Number of

AI profes-

sionals

Digitisation

index for

non-tech

industries

Market

value of

listed tech

stocks

Foreign

sales of

listed tech

firms

Capital

expenditure

and R&D of

listed tech

firms

Market value of

listed internet

stocks

Venture

capital

funding

E-commerce

transition

value

1,068%

mobile

payments

Same level as the

United States

Twice the level of the United States

In e-commerce and mobile payments, it has already overtaken America

900

800

720

530

520

500

ChinaUnited States

SOURCE: Thomson Reuters, Economist.com

1 At March 14th 2018

Gang of six

Market capitalisation1, $bn

Volume

of

users

Rate of

engagement

Transactions

per

engagement

Value per

engagementx x x

Data ~ Capital

BiometricsBoost efficiency

Cut costs

Improve experience

Strengthen risk management

Healthcare services ecosystem

Auto services ecosystem

Real estate ecosystem

Financial services ecosystem

En

ha

nc

e c

om

pe

tive

ne

ss

Su

pp

ly s

ervic

es a

nd

ca

sh

-in

SOURCE: From Ping An to Platform: Technology Innovation for growth; Ping An Group; Nov 2017

Big data

Cloud

Artificial

Intelligence

Blockchain

Top

down

Self

Improvement

Target

setting

Ingredients necessary for super-fast technological innovation?

• Very well educated millennials;

• A deeply ingrained culture of innovation and entrepreneurship;

• Support from the state, keen to regain global supremacy;

• Millennials whose use of smart phones makes US consumers look lax;

• An enormous, homogenous, domestic population;

• Commensurately enormous amounts of data, with swift feedback loops

28

PG 28

MADE IN CHINAAn actuary’s perspective on living and working in 21st Century China

Alain PeddleDeputy CEO at Ping An Health, China

General Manager : China (Discovery Limited)