Economy/Resources - 142. page
People’s Daily: China Has an Excess of Commercial Real Estate
People’s Daily published an article which reported that, during the recent 2015 Boao Real Estate Forum in Hainan, experts attending the forum concluded that the Chinese market has an excess of commercial real estate. The article said that it is a difficult situation that will last for a long period of time. Everyone must accept it and be ready to endure the resulting consequences. According to the article, in Tianjin, at least five shopping malls and department stores closed in the past six months. The empty spaces had to be rented out as business buildings. Some of them are on a month to month basis at only 80 yuan (US$12.52) per square meter. In Chongqing, the vacancy rate of the shopping centers is at 10.2 percent. The article stated that the weak consumer market has affected the vacancy rate, with the growth rate falling behind the newly developed commercial shopping centers. Some of the vacancies resulted when the centers tried to bring in improper store brands.
Source: People’s Daily, August 23, 2015
http://house.people.com.cn/n/2015/0823/c194441-27502236.html
Railway Cargo Volume Continues to Slide
On August 18, 2015, the China National Development and Reform Commission released statistics on railway cargo volume. Railway cargo volume is one of the three major economic indicators reportedly used by Li Keqiang, current Premier, to measure China’s economy. The other two indicators are electricity consumption and the loans that banks disburse.
Impact of the Yuan’s Depreciation on the Housing Market
Daily Economic News published an article that discussed the impact of the yuan’s depreciation on the housing market. Continued depreciation of the yuan will increase the cost real estate developers have to pay in order to obtain overseas financing. They may be forced to reduce housing prices to ease their financial difficulties.
Chinese Banking Industry Saw a Large Number of Nonperforming Loans
Caixin: July Chinese Manufacturing PMI Continued to Decline
Huanqiu: Foxconn Shifts Its Investments to India
According to a report by Huanqiu, Foxconn, the supplier for Apple, Blackberry, Xiaomi, and Amazon, has signed a US$5 billion contract with India to build an electronic manufacturing plant. The article said that, as one of the fastest growing markets for smart phones, India is a country that smart phone manufacturers, including the ones from China, wish to tap into. In addition to Xiaomi, the TCL Corporation, another Chinese multinational electronics company, is planning to build its plants in Brazil and India. As the manufacturing costs continue to grow in China, driven up by the increase in labor, currency, and energy costs, the price of China made products is close to the U.S. The article said that having investments in countries like India will not only consume the excess production capacity that China has but will also assist Chinese enterprises to “step out” and gain added value for China made products.
Source: Huanqiu, August 7, 2015
http://finance.huanqiu.com/ppgc/2015-08/7232641.html
Competition Might Save the Chinese Stock Market
On August 3, 2015, Chen Peixiong, a researcher at the Guangdong Industry Development Institute, published a commentary in Hexun stating that few understood the reason for the failure of the Chinese stock market. He proposed that competition among multiple stock markets might save the Chinese stock market.