Introduction
Descriptive statistical analysis is valuable in understanding fundamental aspects of data (McHugh & Hudson-Barr, 2003). Research studies with lots of data measures and scale variables can, therefore, be simplified in a sensible and easily understood manner (McPherson, 2013). As such, unlike inferential statistics, descriptive statistics describe what is or what data measures indicate. However, McHugh and Hudson-Barr (2003) state that descriptive statistics can be broadly categorised into four main measures including measures of frequency, central tendency, position, and dispersion or variation. The Wall Street Journal article “Chinese Insurer Overtakes BlackRock to Become HSBC's Biggest Shareholder; Ping An Insurance's stake in the bank rises to more than 7%” authored by Joanne Chiu is selected for analysis of the use of statistical data related to my future career goal (Chiu, 2018). In particular, this essay summarises the article, explains how the article uses descriptive statistics, describes how the article applies to my future career goal as well as analyses the reasons why the author of the article chose to use the various types of data shared in the article.
Summary
The article discusses how a major Chinese insurer, Ping An Insurance (Group) Co. has overtaken the biggest HSBC Holdings PLC’s shareholder, BlackRock Inc. after acquiring approximately $12 billion stakes (Chiu, 2018). As such, the author attempts to portray how China is increasingly growing its insatiable appetite for offshore equity investment. This acquirement saw the Ping An’s stake in Asian banks rose above 7%, up from 5% in December 2017 when its investment plan was unveiled. In total, Ping An currently holds $11.97 billion stakes thereby overtaking BlackRock which held 6.6% of the HSBC (Chiu, 2018). However, Chiu (2018) argues that Ping An’s duo relationship with HSBC can be perceived as reversal considering the two companies have previously enjoyed a sturdy and collaborative liaison over a long period where HSBC owned 15.6% stake in Ping An before selling it in 2012 for $9.39 billion. At this rate of offshore and domestic investments, Boston Consulting Groups projects that China’s assets under management will triple by 2025, from 2017 $4.2 trillion mark.
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According to Chiu (2018), HSBC is estimated to pay annual dividends that are approximately 6% of its share price. Therefore, this sizeable dividends payment makes HSBC shares more attractive to investors seeking defensive investment amidst uncertainties over global and trade growth. Besides, Ping An has about $404 billion in assets under management making it one of China’s most substantial privately owned company managing assets (Chiu, 2018). Ping An has diversified investments in a bunch of other companies including 10% in Industrial and Commercial Bank of China. The HSBC’s mainland China investment amounts to approximately 7.2% of its market value (Chiu, 2018).
Descriptive Statistics
The author of the article has used descriptive statistics in several instances. Specifically, the author has used measures of frequency such as percentages and sums. The article has quoted percentages which are meant to simplify large measures of financial data that would be otherwise be seemingly difficult to understand (McPherson, 2013). Besides, the percentages help in presenting qualitative descriptions in a more manageable form. On the other hand, the sum is used in totalling the Ping An and HSBC stakes as well as Ping An’s assets under management. This is vital in the presentation of data in a rather compact manner than in bits and pieces.
Real World Applications
Considering my future career goal is to venture into the statistics-related profession, in particular, a finance-related career such as financial management, financial market analysis, stock trading and investment, the article is significantly applicable to my future career goal. As per the report, the descriptive statistics used are the backbone of analysing financial markets data into consumable deliverables. Besides, such professions are dominated with lots of data measures and scale variables that requires to be simplified and analysed to make sense either to the stakeholders involved or at personal capacity.
Analysis
The author of the article chooses to use various data types or measurement scales shared in the article to provide a clear picture of the position of financial investment of Ping An relative to BlackRock as well offer supporting evidence to the main argument presented in the article (McPherson, 2013). Besides, the author illustrates how China is becoming increasingly interested in offshore investment considering it has previously adopted a conservative approach of domestic investment. As such, the data is a representation of the market share acquired by Chinese private firms as well as assets under management thereby presenting qualitative descriptions to the reader in a more manageable form (McPherson, 2013).
Conclusion
In conclusion, descriptive statistics plays a significant role in the presentation of data that is readily consumable to the reader or pertinent stakeholders. Virtually, it eliminates the complexity of data measures and variables to make them deducible as well as manageable (McHugh & Hudson-Barr, 2003). The article under consideration uses descriptive statistics where it incorporates percentages and sums to present financial information of the companies involved in acquiring HSBC stake. As such, the statistic used applies to my future career goals considering I would like to venture in a finance-related career which is heavily dominated by the aforementioned descriptive statistics. Finally, the authors use various types of data to adequately present the financial information critical in supporting the article’s main argument.
References
Chiu, J. (2018, November 6).Chinese Insurer Overtakes BlackRock to Become HSBC's Biggest Shareholder; Ping An Insurance's stake in the bank rises to more than 7%. Wall Street Journal (Online) . Retrieved from https://www.wsj.com/articles/chinese-insurer-overtakes-blackrock-to-become-hsbcs-biggest-shareholder-1541492277
McHugh, M. L., & Hudson-Barr, D. (2003). Descriptive statistics, part II: Most commonly used descriptive statistics. Journal for Specialists in Pediatric Nursing , 8(3), 111-116.
McPherson, G. (2013). Applying and interpreting statistics: a comprehensive guide . Springer Science & Business Media.
