21st Century Business Herald reported that local governments have revised downward the forecasts of their economic growth. One reason is that the targets were set too high. Shanghai was the only one that had the same target rate as the national forecast of 7.5 percent. All other regions had much higher targets.
Economy/Resources - 178. page
Housing Prices Rose for 16 Consecutive months; Beijing Had the Highest Increase
Guangming Daily carried an article stating that, according to the statistics published by the China Index Academy, in September 2013, the average increase in housing prices for 100 cities in China was 10,554 yuan (US$1,724) per square meter, up 1.07 percent from August. According to the article, this was 16th consecutive month that saw an increase. The average increase in 10 large cities, including Beijing and Shanghai, was 18,179 yuan (US$2,930) per square meter, up 13 percent compared to the same period last year. The article stated that, of those 10 cities, Beijing had the highest increase. It also pointed out that, while the housing prices for the first tier cities kept increasing, the prices in third and fourth tier cities have remained relatively stable and are not expected to see much fluctuation in the future..
Source: Guangming Daily, October 2, 2013
http://politics.gmw.cn/2013-10/02/content_9076291.htm
Waves of Bankruptcies Emerging in Ten Industries
On September 30, Chinese Business Wisdom published a commentary saying that bankruptcies in 10 industries have been on the rise and that waves of bankruptcies are probably not far away.
Totalitarian State Has Caused an Economic Crisis in China
Niu Dao, a popular commentator on real estate and finance in China, stated in a blog at sina.com that the totalitarian Communist regime is bringing about an unprecedented economic crisis in China and that the five year real estate bubble will burst soon.
Muddled Urbanization in Ordos Results in the Loss of Billions and Helpless Ex-Farmers
On September 27, 2013, China Review News published a report on the failure of the urbanization process in Ordos, one of the twelve major subdivisions in Inner Mongolia, the People’s Republic of China. After 10 years of muddled urbanization in which the government caused overheating in the real estate market and in which almost all residents participated, Ordos, a coal mining city, is now an empty city where most of the new buildings are vacant. As a result, billions in wealth has been lost with the burst of the property bubble. Now, all local-governments as well as ordinary residents have to find ways to repay their debts.
As previous rural villages have been demolished, ex-farmers, now urban citizens, stand idle and feel helpless. They have lost all their relocation money in private financing related to real estate development. When property development was hot, these ex-farmers, without any money and no flocks of sheep, had to find jobs as construction workers. In the most recent couple of years, they could not even find any construction jobs because all construction sites have been shut down.
Source: China Review News, September 27, 2013
http://www.zhgpl.com/doc/1027/6/7/7/102767771.html?coluid=10&kindid=258&docid=102767771&mdate=0927175545
BBC Chinese: Shanghai Free Trade Zone Launched with No Major Surprises
CRN: China May Become the Largest Trade Country
State Audit: Local Government Debt Almost Doubled in Two Years
According to Economic Information, a publication under Xinhua, China’s National Audit Office conducted an investigation into local government debt. It found that local government debt almost doubled since the 2011 audit. The nationwide investigation started in August and is nearing completion.