DANWEI - The Beijing municipal government has announced initiatives to install charge points for electric cars around the city and to promote electric vehicles for public transport and rental. At the same time, there has been a significant increase in negative media stories about foreign car brands, especially high-end brands. Coming shortly after a clampdown on military use of luxury autos and noises from the government about forcing officials to switch to domestic auto brands, we believe 2013 will be a challenging year for foreign players in China.
Update alerts
China’s urbanisation faces huge funding gap – policy banker
21 May
China faces a huge funding gap in pushing forward an urbanisation programme that may cost over Rmb50tn by 2020, Zheng Zhijie, president of the China Development Bank (CDB), the country’s top policy lender, has said. Mr Zheng, writing in a central bank journal, also suggested a thorough reform of China’s project financing methods so as to reduce financial risks. We think the proposed reforms represent a key strand in the Xi Jinping leadership’s vision of a “new-type” of urbanisation (Update Alert, May 16).
Chinese homes sales stabilise
21 May
Home sales appear to have stabilised, suggesting that some buyers are returning to the market. The recovery may be derailed, however, by the continued strength in home prices, which could lead to further tightening measures being introduced.
Latest report
16 May 2013
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A flat AprilConsumer China
Department stores: taking a mall-ing
Recent sluggish performance by mainland- and Hong Kong-listed department store operators is an indication that the era of strong-double-digit sales growth may be a thing of the past.
Wanda Plaza – shaking up the retail landscape
A wide range of retail and leisure services under one roof has enabled the aggressively expanding chain to emerge as the most popular shopping destination among Chinese consumers, according to our survey.
Wangfujing – benefiting from rising inland consumption
China’s fourth largest department store operator reported its weakest revenue growth for a decade last year, but its strong presence in inland cities leaves it well positioned to tap into growing demand in these less-competitive markets.
New World – rebranding provides short-term boost
A successful rebranding programme has enabled New World to outperform its department store rivals in terms of sales growth, but its stores remain less productive, while the competitive threat posed by shopping malls remains significant.
Parkson – slow to adapt
China’s largest department store operator has struggled to adapt to shifting market dynamics and is losing popularity as a result, according to our survey.
Rural China
A wheat windfall
Several factors combined suggest a positive outlook for China’s wheat imports in coming years.
Financial China
Peering behind the NPL charade
Levels of distressed assets are rising at Chinese banks despite widespread efforts to camouflage the problem, hitting banks' profits.
Selected financial charts
A selection of key financial data over the past fortnight.
Capital Intensive China
Chinese property developers unveil global ambitions
Chinese real estate developers are increasing their involvement in overseas markets.
Best of Chinese Commentators
Opening up China’s capital account
Economists and analysts have been assessing the likelihood and the likely impact of capital account liberalisation by the new Chinese leadership.
Land sales accelerate
Local commentators debate the meaning of the surge in land sales.
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Latest report
16 May 2013
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New labourers take the stage
As China shifts to a growth pattern driven more by domestic spending, today’s 220m Chinese migrant workers are emerging as one of tomorrow’s most important consumer groups. We estimate that the total consumption of China’s 220m migrant workers reached Rmb4.2tn ($680bn) in 2012, 1.5 times the amount of household consumption expenditure in Indonesia in the same year.
The Bottom Line
Renminbi Compass reflects key changes in the renminbi-denominated investment environment.
Providing research coverage on asset classes as diverse as chengtou bonds, dim sum bonds, real estate, trust products, underground banking, art and antiques, as well as its traditional equity fund research.
Renminbi Compass provides orientation for investors navigating the expanding universe of renminbi asset classes.
