China’s property market was virtually non-existent 25 years ago, but it is now one of the most critical pillars in this country and the source of incredible wealth for many of China’s citizens. Last year property prices in China’s tier one cities made another gravity-defying leap last year. By September, new home prices had jumped 27.8% in Beijing, 32.7% in Shanghai and a meteoric 34.1% in Shenzhen year-on-year. The health of this pillar remains a top concern of the government and citizens alike. But is there a looming crisis? In the near term, the answer seems to be no.
Over the past year, the housing price in many Chinese cities has doubled. The property industry, which contributed to the economy’s growth, is now ‘hijacking’ China’s economic growth model. Instead of investing in real businesses, individuals and companies are betting on increasing property prices. In this interview, Professor Xu Chenggang talks about the government’s role in real estate regulation, the major challenges of pushing reforms in China and how state-owned enterprises and local governments should roll out these reforms.
The Chinese economy grew by 6.9% in 2015, the slowest pace in 25 years. The slowdown is likely to last as China works to change the fundamentals of its economy and transition from relying on investment to growth driven by services and consumption. In November 2015, Chinese President Xi Jinping said: “We will work hard to shift our growth from just expanding scale to improving its structure.” Overseas deal making is one way China is transforming its economy. Once used primarily to acquire energy and resources from developing countries, China’s outbound mergers and acquisitions increasingly involve the acquisition of premium assets in the US and Europe.
New York’s Waldorf Astoria Hotel regularly makes headlines when it hosts celebrities. But in 2014 it made the news for different reasons when China’s Anbang Insurance Group bought the building for $1.95 billion. The bottom line turned some heads, but the Obama administration’s decision to break with tradition and stay at the New York Palace Hotel for the UN General Assembly drew a lot of attention. A Chinese company buying property in the US, Anbang got caught in tense bilateral relations. The Waldorf Astoria deal is one of the many foreign commercial real estate purchases of mainland Chinese investors. What are their motivations?
Wang Jianlin’s sprawling business conglomerate, the Dalian Wanda Group, has its fingers in many pies: from real estate and retail to sports and entertainment.
From stats on online gaming revenues to tier-one home sales, the China data you need to know. Anyone travelling by subway in China will notice one thing: nearly everyone is busy with their smartphone. For some it is social media and for others it is games. It’s no wonder then that online gaming is soaring in popularity. […]
Theme parks in China are in take-off mode once again, but could some be heading for a big drop?
From stats on China’s megacities to the drop in carbon emissions in China, the numbers you need to know.
The first quarter Chinese GDP growth may fall below the 7% target and the US has softened its stance on the Asian Infrastructure Investment Bank.
This week saw the end of Yahoo China, the Shanghai Composite Index peaked, and Uber found an unlikely partner in the Warren Buffet-backed BYD.