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Rate cut may support faltering housing market

03 Mar

Although the housing market weakened in the first two months of 2015 – reversing previous signs of a recovery – the recent cut to benchmark interest rates has the potential to restore upward momentum if mortgage lending is also ramped up.

Rate cut a further sign of policy support

02 Mar

China’s second interest rate cut in five months is the latest sign that, with systemic shadow finance risks abating, policymakers have become more willing to adopt broad-based easing measures to stabilise economic activity in response to continued signs of weakness, rising real interest rates and continued capital outflows.

KFC’s popularity falls further as Asian food chains gain ground

24 Feb

Our latest consumer survey provided further evidence of a structural decline in KFC’s popularity in China, with the brand’s popularity falling further and consumers increasingly favouring Asian-style fast-food chains.

Latest report

12 February 2015

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Consumer China

Vitamins and dietary supplements – healthy growth to continue

Rising health-consciousness among wealthier consumers in particular will continue to drive robust growth in China’s vitamin and dietary supplement market, with regulatory simplification set to intensify competition in the sector.

Besunyen – niche player over-reliant on marketing

The therapeutic tea producer remains well-positioned to benefit from consumer demand for weight loss products, but an over-reliance on advertising and its two core products pose risks to growth.

By-Health – well positioned domestic leader

Leading domestic supplement maker By-Health should continue to outperform sector growth due to excellent brand awareness and an extensive distribution network.

Pfizer – capitalising on Centrum’s popularity

Pfizer’s Centrum multivitamin product has established a strong presence in China, boosted by its designation as an over-the-counter drug, enabling it to be sold in pharmacies and hospitals.

GNC – premium market leader

GNC’s rapid multichannel expansion has enabled it to establish a strong position in China, particularly at the higher end of the nutrition product market.

Financial China

Chengtou bond slowdown reflects reform progress

A marked slowdown in bond issuance by local government financing vehicles since 3Q14 highlights a concerted attempt by policymakers to push through more fundamental financing reforms. However, progress is likely to be gradual.

Selected financial charts

A selection of key financial data over the past fortnight.

Capital Intensive China

Housing inventory fears overblown

Chinese housing inventories remain manageable, meaning that any recovery in home sales should feed through into an uptick in real estate investment and construction activity.

Best of Chinese Commentators

Consumer inflation hits five-year low

Economists debate what the consumer price index’s fall to a five-year low says about the Chinese economy, and what it means for policy going forward.

Assessing the weak January trade data

Economists and analysts have been debating the reasons behind the weak January trade data and the likely policy implications.

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