China Business Knowledge at CUHK

30/10/2026

A great team consists of brilliant individuals, but different backgrounds and opinions can sometimes create friction and make it hard to achieve truly innovative results.

Prof. Dora Lau, Associate Professor (Teaching) in the Department of Management at CUHK Business School, and her research team introduce Team Iungens Practice (TIP), a team process inspired by the Latin word iungens that means “joins” or “unites”. When team members and leaders actively engage in TIP behaviours, they can forge connections, coordinate more effectively, and reduce the negative impacts of interpersonal conflicts on team creativity.

“Anyone can be a bridge-builder,” Professor Lau says. “Companies don’t always need to restructure teams to fix relationship dynamics. Cultivating a culture where team members regularly seek out collaborations and synthesise diverse ideas can also be effective.”

Read more: https://cbk.bschool.cuhk.edu.hk/how-to-turn-friction-into-creativity/

26/10/2026

Banks often offer sustainability-linked loans to help companies achieve their ESG goals. Some banks allow companies to set sustainability targets later, after financing begins. However, most borrowers ended up never disclosing their ESG metrics.

“Sustainability-linked loans can drive sustainability practices only if both lenders and borrowers see the targets as important as the loans,” says Cao Ying, Associate Professor of Accounting at CUHK Business School.

Professor Cao's study finds that banks felt pressure to show their commitment to net zero and meet their own ESG targets. These “sleeping” loans might be an easier way to tick those boxes without ensuring real change.

Read more: https://cbk.bschool.cuhk.edu.hk/how-sustainability-loans-become-unsustainable/

21/10/2026

From the daily transactions at your neighbourhood branch to the digital banking boom sweeping across Asia, trust in banks is fundamental. But what happens when a local bank commits financial misconduct? It fundamentally alters deposit market dynamics and capital allocation.

A new study by Professor Bella Kang Ya, Assistant Professor in the School of Accountancy at CUHK Business School, examines how financial misconduct impacts peer banks in local deposit markets.

📌 Reallocation effect: During stable periods, depositors move savings to healthier local rivals offering lower interest rates.
📌 Market discipline: Offending banks face higher funding costs, increased interest rates, and lost market share.
📌 Contagion effect: During economic crises, widespread panic triggers deposit outflows across both troubled and healthy banks.
📌 Digital acceleration: Fintech and social media accelerate withdrawal speeds, shortening intervention windows for regulators.

Read the full article: https://bit.ly/4jeCZZx

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21/10/2026

Those AI labels popping up on YouTube, Meta, and other social media platforms are not just for transparency, but also serve as a shield protecting users from fake news and fraud. But do they actually work?

“Consumer attention towards AI labels may decline after repeated exposure through psychological habituation, but changing the design or placement of AI labels can refresh such attention,” says Tony Ke, Professor of Marketing at CUHK Business School.

“An AI label becomes helpful when it makes people aware that content made with AI might be fake and deceptive. However, if AI tools become so easy and affordable that both truthful and deceptive creators use them frequently, the AI label becomes merely a descriptive label.”

Professor Ke finds that in general, consumers perceive AI content as unreliable or low effort, even when the underlying message is truthful. While consumers do not intrinsically dislike AI content, scepticism emerges as deceptive creators have stronger incentives to use it.

Therefore, businesses using AI in their digital campaign can protect their brands by putting a disclaimer that the content has been verified by human staff. Importantly, brands should substantiate marketing claims with accessible sources, original product images, and other factual records, rather than just visually appealing content.

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12/10/2026

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09/10/2026

AI integration offers undeniable efficiencies, yet consumer friction and psychological resistance present major operational risks across service sectors.🤖

A new study by Professor Choi Sungwoo, Assistant Professor of the School of Hotel and Tourism Management at CUHK Business School, explores the unintended negative consequences of AI systems on consumer behaviour and workforce dynamics.

📌 Algorithm aversion causes consumers to prefer human judgement, believing algorithms lack empathy and transparency.
📌 Algorithmic transference leads users to perceive a single AI failure as a general failure across all AI systems.
📌 Digital overload, privacy concerns and complicated tech significantly reduce consumer willingness to embrace AI.
📌 AI identity threat creates psychological risks regarding human value and uniqueness.

Read the full article: https://bit.ly/4hw0xqo

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08/10/2026

As Asia’s banking landscape continues to evolve rapidly, maintaining depositor confidence and understanding market discipline are paramount. A recent study by Bella Kang Ya, Assistant Professor in the School of Accountancy at CUHK Business School, highlights the crucial spillover effects of bank financial misconduct on local deposit markets.

“Healthy banks come out ahead by gaining deposit inflows and effectively absorbing market share from the troubled bank,” says Professor Kang. “However, during economic instability or a financial crisis, even healthier local banks also see customers withdrawing their money, and this can trigger a worsening spiral for all banks.”

As financial technology advances, local and contagion effects are now amplified. “Depositors now can reallocate funds in minutes, while social media and financial news accelerate the spread of negative sentiment, shortening the window for banks and regulators to take action,” she adds. To mitigate the damage, she notes that an intervention framework that consolidates what a bank must publicly disclose and when the regulator steps in could reduce the impact.

Read more: https://cbk.bschool.cuhk.edu.hk/do-bank-scandals-create-winners-or-breed-distrust/

Trouble at one bank usually sends deposits to its neighbours, but it can drain the whole neighbourhood during a crisis, Professor Bella Kang Ya finds

06/10/2026

29/09/2026

AI is everywhere now, but is it always for the better? Choi Sungwoo, Assistant Professor of the School of Hotel and Tourism Management at CUHK Business School, notes that AI implementation often brings unintended consequences for consumer behaviour. Consumer perceptions of technology may seem minor, but they can escalate into major problems.

“Understanding these impacts can help practitioners and managers fine-tune their AI applications, reduce potential risks, and maximise the value of these technologies,” Professor Choi says. “Before implementing AI, managers should carefully consider how AI will affect both consumers and employees. They should put themselves in the shoes of the people who will interact with or work alongside the technology and then deploy AI in a way that enhances the overall service experience.”

For instance, people often find AI less reliable for personal tasks, as they value human judgment more for subjective experiences. AI can also make employees feel like their autonomy is being challenged or even worry about their jobs, which hurts team morale and service quality. As businesses deploy algorithms in pricing systems to optimise prices and maximise revenue, consumers often view price discrimination as unfair and are keen to complain about it publicly.

What are your thoughts? Read more: https://cbk.bschool.cuhk.edu.hk/why-humans-keep-swiping-left-on-ai/

Many tend to focus on the technical benefits of AI, but its applicationoften comes with unintended consequences for consumer behaviour, says Prof Choi Sungwoo

25/09/2026

CUHK Business School wishes our global community a joyous and peaceful Mid-Autumn Festival! 🌕

May this cherished season of reunion bring you and your families peace, health, and prosperity. ✨