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China campaign of the day

Summary:
But a shift in investor sentiment suggests the days of China’s youth going under the knife in pursuit of perfection might be numbered, as President Xi Jinping tries to reshape the country’s cultural and business landscape as part of a “common prosperity” drive. S ince the start of July, the market value of the country’s three biggest publicly traded medical aesthetics companies has fallen by a third, representing a collective loss of more than bn, despite the popularity of cosmetic procedures. Investment bank Citic estimated sales revenues in China’s aesthetic medicine market were more than Rmb330bn (bn) in 2020. But analysts warn that the industry could suffer a heavy blow if Beijing concludes that the sector’s negative social influence is on a par with private tutoring and online

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But a shift in investor sentiment suggests the days of China’s youth going under the knife in pursuit of perfection might be numbered, as President Xi Jinping tries to reshape the country’s cultural and business landscape as part of a “common prosperity” drive. S

ince the start of July, the market value of the country’s three biggest publicly traded medical aesthetics companies has fallen by a third, representing a collective loss of more than $17bn, despite the popularity of cosmetic procedures. Investment bank Citic estimated sales revenues in China’s aesthetic medicine market were more than Rmb330bn ($51bn) in 2020.

But analysts warn that the industry could suffer a heavy blow if Beijing concludes that the sector’s negative social influence is on a par with private tutoring and online gaming — industries where strict regulations have crushed the market values of dominant groups in recent months.

“It is perfectly possible we may see another industry disappear,” said Mark Tanner, managing director of China Skinny, a marketing company.

Here is more from the FT.

The post China campaign of the day appeared first on Marginal REVOLUTION.

Tyler Cowen
Tyler Cowen is an American economist, academic, and writer. He occupies the Holbert C. Harris Chair of economics as a professor at George Mason University and is co-author, with Alex Tabarrok, of the popular economics blog Marginal Revolution. Cowen and Tabarrok have also ventured into online education by starting Marginal Revolution University. He currently writes the "Economic Scene" column for the New York Times, and he also writes for such publications as The New Republic, the Wall Street Journal, Forbes, Newsweek, and the Wilson Quarterly.

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