GBA Briefs: 4/3/2020

Show must go on: Zhuhai’s biggest event of the year, Airshow China, is still scheduled for November, the organizers have announced. More than 400 companies are expected to attend. SCN.

Guangdong’s challenge: A senior provincial official has laid out the potential for Guangdong to not only rebound from the current economic crisis, but adapt and adjust its structure to better capitalize on new opportunities presented by changing market forces. He is not worried about relocation abroad of parts of the industrial chain, and he sees priority being placed on domestic consumer demand, improved healthcare, and the establishment of “new infrastructure,” particularly the buildout of a 5G network. SCN. 

Ahead in the clouds: Guangdong companies are at the forefront of a surge in “cloud meetings” business. Tencent recently scooped a big deal with the United Nations for its Voov software, which is comparable to Zoom. Two other big players in the space are Huawei and Kingsoft: since February, Huawei has seen traffic on its Cloud WeLink platform grow by 50 times, while Kingsoft saw a similar surge and as of March 2, it has more than 239 million active users monthly. SCN.

Pharma help: Guangzhou Pharmaceuticals Group, which recently established its international headquarters in Macau, has been active in supporting anti-epidemic efforts in China. It donated more than 20 million yuan of supplies to Hubei, Guangdong, and other places. SCN.

 

Nansha projects: Guangzhou’s fastest-growing district, Nansha, plans to launch 203 key projects this year amounting to a total of 730 billion yuan of investment, with 85 billion being spent this year. (That is comparable to Shenzhen’s entire new spending budget for the year.) Around 28% of Nansha’s budget will go to “new infrastructure”, i.e., 5G, IoT, and industrial internet. SCN.

Dongguan attracts FDI: Despite the shutdown, Dongguan saw a rise in foreign investment during January and February, up 7.5% year-on-year. This article profiles some of the more optimistic companies that are retooling to meet demand for different products. DGT.

Services up: The Caixin Services Index (PMI), which gives an independent snapshot of operating conditions in the services sector, rose to 43 in March from a record low of 26.5 in the previous month. The March reading marked the second lowest level since the survey began in 2005. Caixin

Rentals down: Hong Kong’s retail landlords might have to cut rents by 50 per cent to attract new tenants, one of the city’s richest developers said. SCMP.

Shoppers suffer: The coronavirus pandemic has killed the “daigou” industry – people who buy up luxury goods overseas and sell them in China. (Hong Kong was one of the biggest beneficiaries of this trade.) Sixth Tone.

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