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Positive signs amid gloomy March data

15 Apr

GDP growth slowed in 1Q15 and economic activity weakened further in March. However, signs of a recovery in the housing market and more aggressive government spending reinforce our view that China’s slowdown may be nearing the bottom.

Home sales rise in early April

13 Apr

Housing markets recorded further gains in the first 12 days of April, according to local property bureau data from 42 cities. 

Real estate policy shifts signal support for second-time buyers

30 Mar

A reduction in downpayment requirements suggests that Beijing is now actively supporting demand from buyers looking to upgrade their homes. This policy shift has the potential to support a recovery in home sales, although Beijing will remain keen to strike a balance between stabilising the real estate market, and preventing the housing market from overheating once again.

Latest report

09 April 2015

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The Big Call

PPP to the rescue?

Our surveys of 39 existing public-private partnership projects and 26 investors highlight the challenges Beijing may face in developing this as a new funding model for infrastructure projects.

Consumer China

Online retail – crucial battlegrounds

With competition between Alibaba and JD.com heating up, mobile and logistics represent crucial battlegrounds in the pursuit for online retail supremacy.

Vipshop – expanding in a fast-growing niche

Online discount retailer Vipshop continues to strengthen its lead in a fast-growing niche through growing brand awareness, expansion in lower-tier markets and its successful self-operated model. Demand from price-sensitive consumers should continue to fuel sales in 2015.

JD.com – high-speed expansion, heavy losses

While JD.com should continue to grab market share, buoyed by its reliable distribution model, product mix diversification, lower-tier-city expansion and alliance with Tencent, its cost-heavy model is likely to result in further losses.

Alibaba – mounting pressure from rivals and government

China’s e-commerce market leader Alibaba is likely to maintain its dominance, but faces mounting pressure from faster-growing rivals such as JD.com as well as the government.  

Suning – painful transition weighs on earnings

Suning continues to grapple with sluggish bricks-and-mortar store sales and costly e-commerce operations. Its difficult transition into a multiplatform retailer is expected to continue to weigh on profitability in coming years.

Capital Intensive China

Diverging fortunes for top property developers

Our analysis of recently published 2014 full-year financial results for 21 listed Chinese property developers shows a divergence in fortunes, with developers focused on first-time buyers and upgraders faring better than those focused on luxury developments.

Best of Chinese Commentators

Real estate policy shift sparks debate

Industry participants and policymakers assess the significance and impact of the recent series of supportive measures for buyers looking to upgrade their homes. 

Assessing Alibaba’s latest financial innovations

Industry participants debate the significance of two new short-term credit facilities launched by Alibaba’s financial services affiliate.

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