Beneath the gloom overhanging China's economy, some big companies are finding growth opportunities in smaller cities outside Beijing and Shanghai.
China's cities are separated into tiers based loosely on population and economic size. For example, Beijing, Shanghai, Shenzhen and Guangzhou are generally considered tier-one cities, while lower-tier cities are smaller. "It is worth noting that mobile payment penetration rose from 50.3% to 65.5% over 2017, with most new users coming from rural areas," the report said, adding people are spending close to five hours a day on mobile internet.
Another internet company that has tapped growth in China's less-developed areas is Kuaishou, a Tencent-backed app for streaming short videos. In contrast to last year's roughly 2.8 percent decline in new auto sales, used car sales rose nearly 11.5 percent and accounted for a third of overall auto sales, according to official figures accessed through Wind.
In late February, Guazi's parent company Chehaoduo received a $1.5 billion investment from SoftBank's Vision Fund. Improving the quality of life through better healthcare, education and other services is part of the opportunity in smaller cities, said Qin Gang, deputy secretary general at think tank Center for China and Globalization.
A basic consultation can start at several hundred yuan, or about $65 and up. For 2018, Ping An Good Doctor claimed to have more than 265 million registered users and 54.7 million monthly active users. The company reported a 78.7 percent growth in revenue last year to 3.34 billion yuan, but posted an operating loss of 1.15 billion yuan.