The rest of the world had hoped that strong economic growth in China would create the demand to get the world's economy moving again.
But after five years of annual double-digit increases in China's gross domestic product, or GDP, it has slipped back to single digits.
This latest data suggests that China will not be such an impressive engine for global economic growth anymore, at least in the short term.
Saturday, January 24, 2009
Tuesday, January 20, 2009
hina Property Investment May Fall In 2009
BEIJING -(Dow Jones)- Real estate investment growth in China is likely to slow substantially this year, and total investment may even fall from last year's level, an industry association said Monday.
Real estate investment contributed approximately 1.8 percentage points to China's gross domestic product growth in 2008, said Liu Lin, a researcher at the industry association. If real estate investment shrinks this year, its contribution to GDP growth will be negative, she added.
Property prices are likely to keep falling in the first half but will likely stabilize in the third quarter as macroeconomic conditions improve, the China Real Estate Chamber of Commerce said in an annual report.
"We don't see a rebound in the property market in the short term," CRECC Vice Director Ren Zhiqiang, who is also president of property developer Beijing Hua Yuan Group, told reporters at a press briefing. "It will be six to nine months or even longer before the market rebounds."
Property prices in 70 of China's large and medium cities fell 0.4% in December from a year earlier, the first decline since the government started issuing the data in 2005, according to the National Development and Reform Commission.
Real estate investment contributed approximately 1.8 percentage points to China's gross domestic product growth in 2008, said Liu Lin, a researcher at the industry association. If real estate investment shrinks this year, its contribution to GDP growth will be negative, she added.
Property prices are likely to keep falling in the first half but will likely stabilize in the third quarter as macroeconomic conditions improve, the China Real Estate Chamber of Commerce said in an annual report.
"We don't see a rebound in the property market in the short term," CRECC Vice Director Ren Zhiqiang, who is also president of property developer Beijing Hua Yuan Group, told reporters at a press briefing. "It will be six to nine months or even longer before the market rebounds."
Property prices in 70 of China's large and medium cities fell 0.4% in December from a year earlier, the first decline since the government started issuing the data in 2005, according to the National Development and Reform Commission.
Tuesday, January 13, 2009
China to see worst deflation in 10 years in 2009
BEIJING (XFN-ASIA) - Deutsche Bank expects China to see its worst episode of deflation in 10 years in 2009, with CPI inflation likely to contract by more than 1 pct in February and PPI to decline to minus 7 pct by the third quarter.
Ma Jun, the bank's chief economist for Greater China, said at a media briefing here that sources of deflation will be mainly from price declines in the agriculture, raw material and property sectors.
Three major losers in the market could be the property, commodity and banking industries as a result, while three major beneficiaries should be the food & beverage, power and oil refining sectors, he said.
Ma Jun, the bank's chief economist for Greater China, said at a media briefing here that sources of deflation will be mainly from price declines in the agriculture, raw material and property sectors.
Three major losers in the market could be the property, commodity and banking industries as a result, while three major beneficiaries should be the food & beverage, power and oil refining sectors, he said.
Saturday, January 10, 2009
Falling sales and tumbling prices have forced many real estate companies in major Chinese cities to cut jobs
Some property developers are known to have laid off as many as half of their staff in the past several months.
"The cost of human resources accounts for a big share of the cash flow though it occupies a very small share in the real estate developing cost," said Li Wenjie, a managing director from Centaline Property Agency Ltd. "Since projects do not sell well in current market, it is hard to maintain a liquid cash flow"， forcing developers to cut salary expenses, he said.
Zhujiang Real Estate Company in Guangzhou is reported to have retrenched nearly 40 percent of its total staff, while cutting the salaries of the remaining ones by up to 30 percent.
"In the past, we were used to fat year-end bonuses and other rewards," said a salesperson with a Bejing-based high-end property developer. "This year, we are worrying about our jobs."
"The cost of human resources accounts for a big share of the cash flow though it occupies a very small share in the real estate developing cost," said Li Wenjie, a managing director from Centaline Property Agency Ltd. "Since projects do not sell well in current market, it is hard to maintain a liquid cash flow"， forcing developers to cut salary expenses, he said.
Zhujiang Real Estate Company in Guangzhou is reported to have retrenched nearly 40 percent of its total staff, while cutting the salaries of the remaining ones by up to 30 percent.
"In the past, we were used to fat year-end bonuses and other rewards," said a salesperson with a Bejing-based high-end property developer. "This year, we are worrying about our jobs."
Sunday, January 4, 2009
Rebound seen in China real estate sector
The mainland's ailing property sector is expected to recover this year as new government measures take effect.
The Beijing municipal government, for instance, has purchased about 1,000 commercial housing units to provide more "welfare homes" to improve living quality.
"We will help people improve housing problems by different means," Niu Qingshan, head of Chongwen district, was quoted as saying in the Beijing Times.
He said the apartments bought by the municipal government were at least 15 percent cheaper than other flats in the same district.
The State Council has set a target of 1.3 million homes for low-income families in three years while bolstering the real estate market. Beijing's move signals that the central government's directives are being followed.
The Beijing municipal government, for instance, has purchased about 1,000 commercial housing units to provide more "welfare homes" to improve living quality.
"We will help people improve housing problems by different means," Niu Qingshan, head of Chongwen district, was quoted as saying in the Beijing Times.
He said the apartments bought by the municipal government were at least 15 percent cheaper than other flats in the same district.
The State Council has set a target of 1.3 million homes for low-income families in three years while bolstering the real estate market. Beijing's move signals that the central government's directives are being followed.
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