Huanqiu reported that, in the first six months of 2014, half of the real estate companies saw their profits decline.
Economy/Resources - 149. page
21 CN: Profitability of the Large Companies in China is Worrisome
The TenCent website carried an article that was originally published by China Telecom on 21CN. The article stated that Chinese companies have been unable to make it to the list of the top brands in the world. They lag behind in their profitability and in their investment in research and development. According to the article, among the Forbes’ top 100 world’s most valuable brands list and the Interbrand’s Best Global Brands 2013, no Chinese brand made it to the list. Meanwhile the net profit that Chinese companies make lags far behind compared to those large companies in the U.S. and England. According to the China Enterprise Confederation, the profitability of the large companies in China is worrisome. Among the world’s top 500 companies, the average net profit for U.S. companies was 9.33 percent while Chinese companies were at 5.1 percent. Among the world’s top 500, of the 49 companies that had financial losses in 2014, one-third were Chinese companies. The article said that large companies in China lack the capacity for innovation and rely heavily on imports for their core technology. In 2014, among China’s top 500 companies, the average ratio of research and development spending to income from sales was 1.25 percent. This figure had declined over the last three consecutive years. At the same time, the technology commercialization ratio in China is only at 10 percent which is far below the 40 percent ratio in developed countries.
Source: TenCent, September 5, 2014
http://finance.qq.com/a/20140905/058701.htm
Economist: The Real Reason behind China’s High Housing Prices – Printing Too Much Money
On August 31, 2014, China Gate reprinted an article from a newspaper from Mainland China, Yangcheng Evening News (ycwb.com). The article explained the real reason behind the high prices of China’s real estate. The same news was then published in several other Chinese newspapers. According to Wu Jinglian, an economist and a researcher at the Development Research Center of the Chinese State Council, these high prices are the consequence of the fact that the government has been printing too much money. The amount of money that China has issued is at 200 percent of China’s GDP. Therefore, the fundamental strategy to solve the problem of high housing prices in China is to stop releasing so much money.
Source: China Gate, August 31, 2014
http://www.wenxuecity.com/news/2014/08/31/3560834.html
http://blog.ifeng.com/article/33939860.html
http://house.ifeng.com/news/view/detail_2014_08/31/38580591_0.shtml
He Qinglian: Economic Slowdown Not Because of Anti-Corruption Campaigns
Experts: 2015 Will See Further Decline in China’s Real Estate Industry
According to the Beijing-based media, Caixin, Wang Tao, the chief China economist at the UBS global management firm, predicted that 2015 would see a further decline in China’s real estate market. As a result of fundamental changes in supply and demand patterns that have occurred, even if Chinese decision-makers were to relax government policies, it would hardly change the downward trend.
MIIT: Chinese Industrial Economy Still Faces Downward Pressure
Survey: Most Chinese Private Entrepreneurs Choose Not to Participate in Mixed Ownership Reforms
On August 13, China Review News reported that Central government owned enterprises, such as PetroChina, Sinopec, and the National Grid proposed launching a reform that will include a mixed form of ownership: state-owned and privately-owned mixed ownership. Following their lead, financial service companies such as the China Everbright Group and the Bank of Communications are also lining up to develop their own mixed ownership reforms. Moreover, regional governments are gearing up to join in the mixed ownership process as well. Chongqing City is going to transform two-thirds of state-owned enterprises into mixed-ownership enterprises. Guangdong Province has announced that, by 2017, more than 60 percent of enterprises will be mixed-ownership enterprises. Hebei Province has stated that more than 70 percent of the second level state owned enterprises will complete their task of ownership diversification within the next two to three years. However, a survey showed that over 60 percent of the private entrepreneurs have chosen not to join the state-owned enterprises; over 90 percent of the private entrepreneurs would rather “wait and see.”
Source: China Review News, August 13, 2014
http://hk.crntt.com/doc/1033/3/5/6/103335605.html?coluid=53&kindid=0&docid=103335605&mdate=0813081616