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Chinese economy falters as real estate headwinds grow

Headline macro-economic data for August fell sharply, but a closer reading of the numbers suggests that worse may be to come, with the full impact of weak credit growth on the real estate sector yet to be felt. 

15 September 2014

China further raises rail investment target

China has announced a new target for 2014 rail investment of Rmb800bn, having only recently increased planned spending to Rmb720bn, from the Rmb630bn announced at the start of the year. We believe that the increase in infrastructure investment will be funded by reforms to diversify and expand sources of funding for these projects, rather than any imminent loosening in credit conditions, and, as such, is not indicative of a wider stimulus. 

01 May 2014

Infrastructure financing reforms announced

China’s State Council has announced plans to increase private sector investment in infrastructure projects. We believe that the move could herald further changes, including the creation of a municipal bond market, as China seeks to reform infrastructure financing. 

24 April 2014

FamilyMart heading to Beijing

DANWEI – Japanese convenience store chain FamilyMart will soon open its first outlets in Beijing. Also this week, the latest episode in the rocky development of a transport hub in Beijing. In the Mai-Mai Index, we look at use of the term “PM2.5” in Chinese news and social media in Q1 2014.

11 April 2014

Survey confirms infrastructure slowdown

Our survey of 70 infrastructure projects in seven provinces provides on-the-ground evidence of the slower investment trend suggested by official numbers since the start of the year, but also points to likely short-term support for existing projects.

27 March 2014

Infrastructure financing reforms accelerate

Recent events suggest that Beijing is taking measures to fix the country’s faltering infrastructure funding model. However, the lower 2014 fixed-asset investment growth target announced at the National People’s Congress highlights that progress is likely to be slow.

06 March 2014

Infrastructure comes off the rails

As credit growth slows, China is being forced to scale back its infrastructure ambitions.

27 February 2014

Shake out in China’s pharma industry

DANWEI – 523 pharmaceutical companies have failed new manufacturing standards in China, and all of these companies will now have to close shop. With evaluations in the industry set to continue in to 2015, China’s pharmaceutical industry is undergoing a major shake out. Also this week: J&J trademark revoked; China Resources acquires Moutai brewery; and more.

10 January 2014

Lower rail investment target highlights financing difficulties

China has set a full-year railway investment target of Rmb630bn ($104bn) in 2014, below the Rmb660bn target for 2013. This conservative 2014 target highlights the difficult financing conditions for such projects, a situation that could herald lower infrastructure investment growth in 2014 (CC Dec 19 2013, Capital Intensive), continuing a weakening trend seen since September 2013.

09 January 2014

Fixed-asset investment growth faces headwinds

2014 looks like it will be a challenging year for the capital intensive industries sector.

19 December 2013

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