Economy/Resources - 213. page

Xinhua recently reported that China Ocean Shipping (Group) Company (COSCO) reported a 10.5 billion yuan (〜US$1.67 million) loss in 2011. The company blamed its poor performance on the decline of the global economy and suggested that the entire ocean shipping industry is showing a loss. The second reason identified for the loss was the rising cost of oil. The fourth quarter loss accounted for more than half of the total annual loss. The COSCO CEO, Wei Jiafu, suggested that, based on the signs of recovery in the United States and Europe, it is expected that the global container shipping market will improve during the year 2012. The Chinese government owned COSCO is one of the largest liner shipping companies in the world. COSCO stops at over 1,000 ports around the globe.

Source: Xinhua, March 31, 2012
http://news.xinhuanet.com/fortune/2012-03/31/c_122913532.htm

The China National Development and Reform Commission published the results of a study of 31 provinces, municipalities, and autonomous regions that measured economic, technological, and social openness. Shanghai, Beijing, and Guangdong were ranked the top three with scores of 84.7, 68.1, and 56.9 respectively while Guizhou, Qinghai, and Tibet were ranked the bottom three with scores of 3.4, 6.5, and 7. The report showed Beijing tied with Shanghai on social openness and on technological openness; it scored the highest among the top three. However, its economic openness was far behind Shanghai and Guangdong. Among the four economic zones, the Pearl River Delta and the Yangtze River Delta had the highest scores in openness but the Bohai Economic Rim and the Sichuan/Chongqing district lagged behind.

Source: Xinhua, April 1, 2012
http://news.xinhuanet.com/politics/2012-04/01/c_122916340.htm

Beijing Daily recently reported that sales of new housing projects in the city of Beijing have nearly come to a standstill. According to the Beijing Real Estate Trade Management Network, in 10 out of 21 new housing projects that are on the market, zero contracts have been signed since the beginning of this year. Among all new projects, the rate of accumulated contracts signed so far this year is only eight percent. Last year that same number was 50 percent. Most of the projects that have had no sales are high end luxury products and apartments that are maintaining high pricing strategies. Experts suggested that the market does not look like it is about to improve. Buyers are holding off on their spending plans in the hope that prices will drop further. Based on how rapidly inventory is increasing, an average price drop of 15 percent is expected by the end of June, especially for low end housing products.

Source: Beijing Daily, March 24, 2012
http://www.bjd.com.cn/10bjxw/ss/201203/24/t20120324_1570498.html

Xinhua recently reported that the economy of Guangdong Province has been slowing down. Guangdong Province is one of the world’s major manufacturing bases. In the past two months, the output of large scale manufacturers has increased only 5% compared to the same period last year. According to the Guangdong Provincial Bureau of Statistics, foreign investment based manufacturers represent 60% of the industrial economy of the province. In the past two months, this section has declined by 0.4%. The heart of Guangdong’s economy is the Pearl River Delta region. The exports from the nine cities in this region only increased by 2.7% and Guangdong’s exports have shown a decline of 4% compared to last year. This is the first time in three years that the province has suffered a decline in exports. Eleven cities in the province have reported declines.

Source: Xinhua, March 24, 2012
http://www.gd.xinhuanet.com/newscenter/2012-03/24/content_24950679.htm

The Ministry of Finance published the January and February financial report on State Owned Enterprises (SOE). The report indicated that in the first two months of 2012, the SOE’s income was 7.5 trillion yuan, which was 9.9 percent higher than the same period last year. The SOE’s profits amounted to 363.5 billion yuan, which was down 10.9 percent from the previous year. Profits for SOEs for the full year of 2011 were 2.2 trillion yuan, which was up 12.8 percent from 2010. The industries that had the largest growth in profits were tobacco, posts & telecommunications, while steel, petroleum & petrochemical, real estate construction, and mechanical industries had the largest declines in profits.

The SOEs included State-controlled share-holding companies, 117 central enterprises, and those SOEs at the local levels. The report did not include the State Owned Finance Industry.

Source: Xinhua, March 20, 2012
http://news.xinhuanet.com/fortune/2012-03/20/c_122855448.htm

The Economic Observer recently reported on the current status of China’s real estate construction market, which has been the primary engine for the economy. The dramatic decline in investment in the housing industry is having a major impact on China’s economic growth. Even the largest company in this industry, Wan Ke, is lowering its sales projection to half of the planned level. According to China Index Research Institute, in November and December of 2011, national land sales declined 47 percent each month. Starting this year, residential new construction growth was 0 percent, and 90 percent of the housing companies downsized or stopped their land purchases. Most of these companies are prepared to lower their prices. However, it is expected that even lowering their prices will not improve their sales volume. No one is optimistic about the near future.

Source: The Economic Observer, March 17, 2012
http://www.eeo.com.cn/2012/0317/223026.shtml

On March 18, 2012, the National Bureau of Statistics published its February home sales report on 70 of the middle to large size cities in China.

The prices of newly constructed homes dropped in 45 out of 70 cities, as compared to January 2012; 21 remained flat and 4 cities had a price increase that was less than 0.1 percent. In the same period in 2011, the prices dropped in 27 out of 70 cities and 12 were higher in February than in January.

For existing home sales, in February 2012, the prices in 45 out of 70 cities dropped compared to January, while 14 remained flat and 11 had an increase that was under 0.4 percent. In the same period in 2011, prices dropped in 44 out of 70 cities and were higher in 7 cities in February as compared to January.

Source: China News Review, March 18, 2012
http://finance.chinanews.com/house/2012/03-18/3752023.shtml