tag:blogger.com,1999:blog-378326802024-02-06T14:44:12.548+08:00China DynamicsThis blog includes headlines and summaries of news or comments about the developments in China's economy. It may provide somewhat useful clues for those who are interested in studying or understanding Chinese economy. Your comments and discussions are welcomed and appreciated!VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-37832680.post-18969929380614304982009-05-15T11:44:00.000+08:002009-05-15T11:45:33.676+08:00China Development Bank Buys Office Building developed by R&F Properties at 22.7K Yuan per SQMThe long speculated moves by R&F Properties to sell its commercial properties and to raise funds through diversified channels turned out to reach a deal lately. The Hong Kong-listed developer announced yesterday that it had sold a half of the offices and the naming rights of the R&F Yingtai Place at Pearl River City, CBD of Guangzhou City, to the Guangdong Branch of China Development Bank(CDB) at a price of around 500 million yuan, marking the biggest deal in Guangzhou’s office market this year.<br /> “We have gone through a 6-month negotiation in efforts to sell this property,” said Li Silian, Chairman of R&F Properties. With a total sales of over 8 billion yuan in the first four months of this year, the latest transaction will make a significant relief to R&F’s tightened cash flow.<br /> According to R&F’s release, the part of property bought by CDB includes 10 floors of offices and 1 floor of retail space, in addition to dozens of parking spaces, with a GFA of over 22,000 sqm, accounting for about 25 per cent of the whole property.<br />The unit price of 22,700 yuan per sqm is moderately lower than the price level of premium offices in the CBD of Guangzhou. However, the purchase includes several thousands square meters of retail space at the third floor, which is expected to bring a significant fair value gain in the future, noted Wu Deli, president of the CDB’s Guangdong Branch, the prices of many non-ground floor retail properties in CBD are above 50,000 yuan per sqm.VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-20404039594961576692008-12-11T21:13:00.006+08:002008-12-11T22:02:32.568+08:00First REITs Likely to be Born out of State-funded EnterprisesState-funded enterprises and large-sized real estate developers are expected to be the first sponsors of real estate investment trusts in China, said Li Qingxian, director of the research and cunsulting department of <a class="l" onmousedown="return clk(0,'','','res','2','')" href="http://www.colliers.com/Markets/Taiwan/" target="_blank">Colliers International</a>'s east China branch. Market watchers believe that initiation of REITs market will be constructive to the development of China's real estate investment market and equity market. The actualization of REITs will also increase the attractiveness of China's real estate market to foreign investors.VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-44332647402193493722008-12-10T21:44:00.002+08:002008-12-10T22:02:24.532+08:00Y-o-Y Growth Rate of Property Prices in China's 70 Major Cities Slowed to 0.2 per cent in NovemberProperty prices in China’s 70 major cities edged up 0.2 per cent y/y and down 0.5 per cent m/m in November, according to statistics jointly released by National Development and Reform Commission and National Bureau of Statistics. 43 cities witnessed a month-on-month drop in property prices in November, the statistics show. The y/y growth rate of property prices in November is 1.4 percentage points lower than that in October.VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-45490902619329897822007-02-28T15:25:00.000+08:002007-02-28T16:19:33.262+08:00Chinese Economy UpdateChina's shares market plunged dramatically yesterday, with a market value loss of 1 trillion yuan. But a powerful rebounding recovered the index by 109 points today.<br /><br />Apart from the rumors that stuck down the market yesterday, underground private funds are considered a major force that have been sell off shares after profit taking.<br /><br />It's noteworthy that China's economic influence over the global economy is increasing remarkabley. The ripple effect of yesterday's market setback in China has caused declines of major stock markets around the globe, including New York, London, Tokyo and Toronto. Pessimistic market watchers warn that financial risk is accumulating quicly in the world's most populous country and may cause catastrophic economic crisis in the not too remote future . And yesterday's tumble may be just a pre-play of the potential shock.VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-74852284201337279462007-02-26T11:18:00.000+08:002007-02-26T13:18:11.084+08:00Chinese Economy Update<ul><li><span style="font-family:verdana;">State Council: housing prices in some cities are still rising too fast, more curbs needed.</span></li><li><span style="font-family:verdana;">Beijing is to provide 10 million sq meters of affordable housing and 10 mln sq meters of price-capped homes within 3 years. </span></li><li><span style="font-family:verdana;">Carrefour's five stores in Guangzhou in the red, Beijing outlets operating well.</span></li><li><span style="font-family:verdana;">Xinjiang boasts proven natural gas deposits of 1.29 tln cu meters, tops all the hydrocarbon producing regions in China. </span></li><li><span style="font-family:verdana;">Daily west-to-east gas transmission reaches 36 mln cu meters, up nearly 40 per cent yr-on-yr.</span></li><li><span style="font-family:verdana;">Beijing's tourism sector pockets CNY 1.9 bln during the week-long Chinese New Year holiday.</span></li><li><span style="font-family:verdana;">China's trade defict in service sector is in a widening trend.</span></li><li><span style="font-family:verdana;">Steel industry witnessed record high profit in 2006.</span></li><li><span style="font-family:verdana;">Monetary tightening remain central bank's main policy as concerns about excess liquity linger.</span></li><li><span style="font-family:verdana;">The three state-run oil giants of China will send deligations to Russia next month in efforts to seek breakthrough in engergy cooperation between the two countries. </span></li></ul>VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-1167034739083942932006-12-25T16:11:00.000+08:002006-12-25T16:49:52.853+08:00Chinese Economy Update<ul><li>Technical Barriers Cause Huge Losses to Chinese Exporters. Technical barriers caused a total materialized damage of 69.1 billion US dollars and losses of trade opportunities worth 147 billion US dollars to Chinese exporters in 2005, according to a report released by China's Ministry of Commerce on Dec 25.</li><li>China is set to raise resource prices in efforts to promote conservation, efficiency, and environmental protection. The pricing scheme for oil, natural gas, electricity, coal, water and land will be reformed, taking environmental costs into account. The government is to charge higher fees on waste discharge, sewage treatment and garbage disposal.</li></ul>VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-1165303229385760752006-12-05T15:02:00.000+08:002006-12-06T12:59:36.656+08:00Beijing's tallest serviced apartments priced at 70,000 yuan per square meterThe serviced apartments suited at 50th-58th floors of Beijing Yintai Center complex's 63-story tower are labelled with a start price of 70,000 yuan per square meter (US$ 835 per square feet), another stunning price tag in China's white-hot property markets, local media reported. The tallest hotel/apartment building in Beijing is located at the core area of the central business district.VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com1tag:blogger.com,1999:blog-37832680.post-1165301368863103402006-12-05T14:19:00.000+08:002006-12-05T16:07:05.516+08:00Finance of Beijing's gigantic public transit systemBeijing has issued over 5 million public transportation payment cards (RFID technology-based) in eight months since April this year. The city's public transportation carrier charges 20 yuan for purchase of each card. This has generated a total revenue of over 100 million yuan. The card is virtually a debit card. Assuming a commuter deposits 70 yuan (I guess this is a conservative estimate) in his/her card once a month, the public transit carrier could receive a total of 350 million yuan (in advance) a month. This would greatly increase the carrier's cash liquidity and thus allows it to charge the transport fare at a discount of 20% because it can benefit from the increase in holdings of cash assets. At the same time, the change gives the carrier more financial resources to upgrade its bus/train fleet.<br />In addition, the speculation about cancelation of monthly pass (card-based as well) was reignited yesterday. Souces said the cancelation may result in a further discount on the bus fare paid with regular card.VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-1165299394870235192006-12-05T13:52:00.000+08:002006-12-05T14:19:18.123+08:00How efficient is China's R&D investment?According to a report by the OECD, China's research and development (R&D) investment in 2006 is expected to reach US$136 billion, overtaking Japan to become the World's second largest R&D spender, just far behind the US. Although many foreign companies have established substaintial R&D capacities in China, a large part of coutry's indigenous R&D expenditure is likely to remain inefficient. A significant number of the applicants and users of R&D funds took the money with little output. The country is far from being a R&D power.VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-1165030976618241692006-12-02T11:39:00.000+08:002006-12-04T10:07:23.963+08:00Is financial expansion likely to be China's next step of "go global" strategy?<span style="font-family:verdana;">Industrial & Commercial Bank of China (ICBC), the largest lender of the world's most populous country, was reported to have been preparing for acquiring Bank Halim, a much smaller Indonesian bank. This move, together with smilar activities by other state-controlled commercial banks that have run IPOs in recent years, may implies a start of potential international expansion by the Chinese banking giants, just following the coutry's efforts in hunting for energy assets around the globe, from the Middle East to west Asia and Africa, despite the apparant weakness in the country's banking system. Why? One of the reasons might be the close relationship between finance and energy. </span>VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-1164939379995729372006-12-01T09:17:00.000+08:002007-02-28T16:42:42.248+08:00Chinese Economy Update Dec. 1, 2006<ul><li><span style="color:#cccccc;">China's unemployment statistics to cover rural areas (accounting for almost two thirds of the country's population) for the first time, but the data are likely to be far from accurate. </span></li><li><span style="color:#cccccc;">China's Engel Coefficients for the year of 2005 (36.7% in urban areas and 45.5% in rural areas) calculated by the National Bureau of Statistics are widely questioned.</span></li><li><span style="color:#cccccc;">China's southern coastal province Guangdong witnesses a new wave of industrial shift, characterized by moving-in of technology-intensive industries from America and Europe</span></li><li><span style="color:#cccccc;">DB greater China economist Ma Jun says an overspeed growth in China's trade surplus is to bring about six major risks: dramatic changes in foreign exchage rates (particularly the greenback) and in global economy; increasing trade frictions; excess liquidity and ineffectiveness of monetary policy; bubbling of financial markets and property market; a contradiction between low yield of forex reserves and much higher rate of return on FDI in China; increasing possibility of a sudden correction of RMB's value, which may shock other economics (mainly the Asian ones) and global commodity markets.</span></li><li><span style="color:#cccccc;">WB's report shows that a third of global anti-dumping claims target China.</span></li><li><span style="color:#cccccc;">S&P predicts it will take at least five years before the newcome foreign-funded banks could make substaintial profits in China.</span></li><li><span style="color:#cccccc;">Brilliance China Automotive signed a contract to export 158,000 sedans to Germany in next 5 yrs, representing Chinese automakers' ambition to penetrate into the industrialized world. </span></li><li><span style="color:#ffffff;"><span style="color:#cccccc;">China Post Group incorporated on Nov 29 with a registered capital</span> of 80 bln yuan.</span></li></ul>VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0tag:blogger.com,1999:blog-37832680.post-1164856274080981472006-11-30T10:15:00.000+08:002007-02-28T16:47:37.780+08:00Chinese Economy Update Nov. 30, 2006<ul><li>Chinese economy enters into a correcting phase</li><li>Chinese economy risks an overall overcapacity - NDRC economist Ma Xiaohe</li><li>Chinese yuan (RMB) climbed 400 basis points in six days (nevertheless, RMB is depreciating against China's trade-weighted currency basket in real term)</li><li>5 bln yuan of private capital from Shanghai poured into three northeastern provinces</li><li>Property prices in Beijing's downtown core area top 14,000 yuan</li><li>Institutional investors' stock holdings jump 60 bln yuan in October</li><li>Morgan Stanley covets 49 pct stake in Shenyang Machine Tool</li><li>Arcelor-Mittal sees backsets in buying a 38 pct stake in Laiwu Steel</li><li>China sees natural gas shortage of 20 bln cubic meters in next 4 yrsCNPC reported to form its second JV in Russia</li></ul>VOXhttp://www.blogger.com/profile/09975116757257188820noreply@blogger.com0