Encouraging signs in China's domestic markets

As much as China has on the surface appeared to embrace capitalistic reforms, the cronyism and concentration of power amongst state owned firms suggests otherwise. Things may be changing according to a survey of China's top brands (WSJ):

Support for private enterprise is also gaining momentum, Ms. Wang said. The majority of new entrants in the study—which was expanded to 100 brands from 50 in previous years—were from market-driven companies. They accounted for 34 new entrants to the list, compared with 16 new state-owned entrants, the study said.

To be sure, state-owned companies still dominate the country’s top brands, accounting for eight of the top 10.

Aside from propelling private enterprise, other government initiatives appear to be reflected in the brand rankings, Ms. Wang said. Alcohol brands’ value has fallen amid an austerity effort, curbing lavish bureaucratic banquets and the consumption of pricey spirits. White-spirit brand Moutai’s value dropped 19% on-year, while alcohol company Wu Liang Ye dropped 66%.