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Chinese home sales continue to strengthen

22 May

Home sales accelerated in the first 21 days of May following strong growth in April, according to local property bureau data from 42 Chinese cities.

April macro data underscores need for further credit loosening

13 May

Despite a sharp rise in home sales and some signs of stabilisation in industrial output in April, slower credit issuance led to a sharp fall in investment growth, strengthening the case for further loosening measures.

Shanghai-Hong Kong Connect investors favour dual-listed stocks

12 May

The recent surge in trading via the Shanghai-Hong Kong Stock Connect scheme has primarily been focused on eligible large-cap, dual-listed stocks on both bourses.

Latest report

21 May 2015

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Consumer China

Casualwear – multinationals extend dominance

Multinational apparel giants continued to outperform local players in a slowing casualwear market in 2014. The overall market is likely to rebound slightly in 2015, along with some domestic clothing firms, though many of these face challenges as they recover from painful readjustments.

H&M – further expansion on the cards

H&M’s rapid expansion in China over the past year has boosted its popularity and underpinned strong revenue growth. It plans to deepen its market penetration in 2015, while its recently launched online store should also support further strong performance.

Fast Retailing – Uniqlo well positioned for further growth

The Japanese operator of popular casualwear brand Uniqlo should sustain its rapid growth in China, driven by aggressive expansion and effective market positioning.

Heilan Home – outperformance to continue in 2015

Domestic apparel-maker Heilan Home’s strong mass-market positioning, continued rapid store expansion and investment in improved online-to-offline services should underpin continued outperformance in 2015.

Semir – restructuring drives recovery

Semir has rebounded strongly as it continues to restructure its business. Solid revenue growth and improving popularity among wealthier consumers has been driven by an increased presence in upscale shopping malls and improved product quality, while online sales maintain an upward trajectory.

Financial China

Policy shifts ease local debt risks

Recent moves to provide short-term support for existing local government financing – in contrast to previous attempt push through rapid reform of local financing models – should reduce the default risks posed by the estimated Rmb3.3tn in local government debt due to mature this year.

Selected financial charts

A selection of key financial data over the past fortnight

Capital Intensive China

Tight credit undermining real estate investment

The continued weakening in real estate investment, despite a rebound in home sales, is largely due to tight credit rather than supply-demand factors. Sustained limited credit could curtail the current housing recovery and prevent it from filtering through into the wider economy.

Best of Chinese Commentators

Slow progress for PPP

Policymakers and investors debate the reasons why investment in public private partnerships has been lower than expected.

Evaluating "Made in China 2025"

Mainland commentators have been assessing the likely impact of the "Made in China 2025" plan to upgrade the country’s manufacturing sector, unveiled by the government on May 19.

The Bottom Line

CC-20150521-Bottom-Line

Custom research

China Confidential Database

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