Reconsidering the Role of Real Estate

正China’s real estate market is in a stage of cyclical adjustment.Data from the National Bureau of Statistics show that in April,secondhand housing prices in 22 of the country’s 70large and medium-sized cities dropped from the previous month,and newly built housing prices in eight of the 70 cities declined over those of a month ago.In the last several years,the country’s real estate industry has developed very rapidly,pushing up overall economic growth.However,     

MARKET WATCH

OPINION Loosen Property Curbs? Not so Fast China’s real estate market is mired in a dilemma: The more the government tries to regulate the market,the more prices go up.This has led to an outcry among the general public. A meeting held at the end of July by the Political Bureau of the CPC Central Committee,the country’s top decision maker, vowed to "promote the stable and healthy development of the real estate market." This deviated from last year’s "strengthen the regulation of the real estate market and affordable housing construction,"triggering market speculation that regulations could     

Housing for All

New measures focus on controlling price hikes while maintaining the property sector's impetus to aggregate demand China's real estate market, like its stock market, is in urgent need of a "policy" remedy. But while the stock market needs policies to stimulate it, the real estate market needs policies to cool down the overheating investment and exorbitant prices. Real estate developers have had a rough 2005 with a series of measures taken to rein in the market. They seem to have taken     

ECONOMY

<正>Home Price Rise China’s real estate market continued to warm up in June,with new home prices in more cities increasing on a month-tomonth basis.Of the 70 large and medium-sized cities surveyed in June,new home prices climbed in 27,up from the 20 in the previous month,while 34 reported monthon-month price declines,down from May’s 43,according to data released on July 18 by the National Bureau of Statistics(NBS).     

Price Matters

China’s property developers are under pressure from the government and the market to reduce real estate prices and boost sales     

The Risks Are Looming

China’s real estate market has polarized,and the government needs to take action Selling season is in full swing in China’s real estate market.According to statistics from China Index Academy,the research arm of Soufun,China’s largest property website,the average price of new homes in 100 major Chinese cities rose 1.07 percent in September     

ECONOMY

<正>Economy Unaffected The recent stock market turbulence will not have a major spillover effect on China’s real economy,global rating agency Moody’s said on July 16.The equity market turmoil does not warrant a change in the agency’s forecast that China’s real economic growth will reach 6.5 to 7.5 percent this year and 6 to 7 percent in 2016,Moody’s Investors Service said in a report.China’s stock market has been on a roller coaster ride for the past few weeks.The benchmark Shanghai Composite Index slumped more than 30 percent at its lowest point from the peak in June.     

ECONOMY

正Housing Market Tightened Beijing and three other major cities launched housing curbs on March17 as part of the larger effort to rein in China’s real estate industry where home prices have skyrocketed,threatening to create a property bubble.On March 17,Beijing raised the down payment requirements for second-home buyers from 50 percent to 60 percent of the full price.Now,those who buy a second home are defined as those who have either residential property ownership     

MARKET WATCH

TO THE POINT: China's power consumption in the first half of 2009 fell 2.24 percent year on year. The National Bureau of Statistics explained the drop was due to power efficiency improvement in many energy-depleting sectors. The real estate market continues to burn hot, but a number of un- certainties lingered to quench the fire. Newly approved funds in July flew into markets to catch fading glows of the stock euphoria. The Aluminum Corp. of China Ltd. raised spot alumina prices by 4.35 percent, in a re- fl...     

DOMESTIC PARKS VS. DISNEY

正China’s theme park industry embarks on a ride of challenges and opportunities Before Disney opened its first resort on the Chinese mainland,the sixth of its kind worldwide,China’s real estate tycoon Wang Jianlin raised quite a few eyebrows when he claimed on a talk show on China Central Television that Disney shouldn’t have built a resort in Shanghai.According to Wang,since China already has     

MARKET WATCH

The World Bank forecasts a rosy prospect for the Chinese economy,despite a moderate slowdown in growth.The real estate market continues to cool,with an increasing number of cities experiencing price declines.China’s state-owned enterprises face a bumpy road ahead,with their profits shrinking quickly.The shipping giant COSCO is swimming in red ink due to tepid demands and overcapacity.China is expected to replace the United States as the world’s top e-commerce market by 2015.     

WEEKLY WATCH

OPINION Watchdog of the Housing Market As a rule, property prices are bound to rise rapidly in fast growing economies. China is no exception. This is a worrying trend because skyrocketing housing prices not only give rise to real estate bubbles, which may in turn lead to a potential financial crisis, but     

More Rational Distribution.of FDI in China

THE Global Investment Trend Monitor released last October by the United Nations Conference on Trade and Development(UNCTAD)revealed that China had surpassed the U.S.in the first half of 2012 as the world’s largest recipient of foreign direct investment(FDI).The statement was corroborated by figures from China’s Ministry of Commerce:in the first three quarters of 2012,the foreign investment China’s mainland used in real terms added up to US $83.42 billion.Though this marks a 3.8 percent dip compared with the same period in 2011,the sum going into the service industry(excluding real estate)picked up.Meanwhile,transnational corporations built more R & D centers and regional headquarters in the country,signifying their confidence in China’s investment environment and prospects for growth.The continued influx of global capital,technology and professionals led to more rational distribution and structure of FDI in China.     

The End of Snapping Up?

After years of exponential growth,China’s housingmarket has begun to show signs of stagnation Returning from a stint as a visiting scholar at Cambridge University,Wang Shi,the 63-year-old heavyweight in China’s real estate world,didn’t change his straightforward style of communication."People can no longer expect to be laughing all the way to the bank simply by purchasing properties,and the mushroom growth of     

Firm Hold

正Housing market control will not loosen in 2012 The runaway freight train that was China’s real estate market is showing signs of slowing.But this has not eased China’s top policymakers.At a State Council meeting held on January 31,Premier Wen Jiabao reiterated the government’s stance of consolidating measures to curb property speculation and bring about a     

Cityscape China To be Launched in May 2007,Shanghai

Following the extraordinary success of Cityscape Dubai, the world ’ s largest interna tional B2B real estate event for inves t o r s and de vel o p e r s, IIR Middle East, the organ i z er of Cityscape , pres e n t e d the Cityscape brand concept to a gath e r ing of top real estate indus- tr y prof essionals here in Beijing to for ma l l y launch the even t ’ s lat- est oriental exp o r t, Cityscape China.Neil Hickman, Exhibition Director of Cityscape China, said, “T his is the fir …     

MARKET WATCH

The financing vehicles of local governments remain a concern despite government efforts to control their mountains of debt.Mergers and ac-quisitions are on the rise in the real estate sector as deep-pocketed developers take over financially starved rivals.China snaps up long-term Japanese govern- ment debt as the country attempts to diversify its holdings of foreign exchange reserves.Growth in the non-manufacturing sector has slowed,due to a drop in the purchasing managers index in May.Ford Motor aims to expand in China, hoping to cash in on the country’s auto market boom.The international ac-counting firm PwC expects China to become the world’s top banking market by 2023.     

Where ShouldMuseums Draw The Line on Commercialization?

正Recently,the Nanjing Museum in Jiangsu Province made headlines for hosting a real estate developers’promotional activity. On April 26, the museum’s curator was suspended for an alleged misuse of power. According to China’s regulations on the protection of cultural relics, heads of museums do not have the authority to give the green light to commercial promotions at their institutions and should instead apply for approval for     

MARKET WACH

TO THE POINT: Although China’s stock market tanked on February 27, with the Shanghai Composite Index dropping 9 percent in a single day, it’s still too soon to tell whether this year of the pig will attract a bear or bull as its financial mate. Here’s what is known: China Premier Wen Jiabao expects GDP to grow at 8 percent this year, which would be a major decline from last year but obviously still strong And Chinese blue chip companies are still looking for ways to list back home, like CNOOC. Shanghai is also looking to open its stock exchange to Hong Kong investors, and let’sface it, when China opens up anything, business usually comes rushing in. The running of the bulls in China hasn’tbeen cancelled yet, even if some see thunderstorms in the financial forecast. In other news, China is getting tough on domestic automakers, Sinopec is planning big expansions,Baotou Iron and Steel isn’t, and stock index futures are in the works in China.     

Market Watch

TO THE POINT: Spring Festival comes, and Spring Festival goes. The nation’s biggest holiday was rewarding for consumer products manufacturers and retailers. The festival period consumption jumped 15 percent compared with that of last year. Right after the seven-day carnival, China’s central bank showed its concerns over excessive capital liquidity and raised the bank reserve requirement ratio another 0.5 percent, a mild move to calm down the white-hot investment and stock market speculation. Also after the festival, which has always been a big test for China’s transportation capability, Air China and Qunar.com had announced an online ticket search and booking service for travelers’ convenience. The last week of February was a black week for most traders in the stock market. February 27 saw the benchmark Shanghai Composite Index drop 9 percent, the sharpest of its kind in a decade and many lost their money. For newcomers to the stock market, what they have lost is probably confidence. In a country low in inflation, individuals are still keen on buying gold for family financial stability in case real inflation takes place. Though gold output in 2006 reached an unprecedented high, the amount was still insufficient and will face strong demand in the future. Meanwhile, by the end of 2006, total banking assets in China hit a record high, accounting for 5 percent of the world’s total. The Big Four state-owned commercial banks are still major players with relatively good performance.