Huizhou’s economy is continuing to slow amid a tough external environment, but rising investment levels are cushioning the economy, according to official data.
Industrial output continued to fall from January to August , with growth among enterprises above
designated size rising only 0.7% YoY, down 1.5 percentage points from the Jan-Jul
period. Electronics and petrochemicals, the two big guns, were down -1.6% and -4.5%, respectively, which was slower than the Jan-Jul
period by 1.1 and 2.5 percentage points, respectively.
However, fixed-asset investment growth accelerated. From January to August , it shot up 15.1% , 2.7 percentage points faster
than the Jan-Jul period, and 12.1 percentage points faster YoY. Industrial
investment grew 15.8%; infrastructure investment jumped 24.5%; and real estate investment jumped 20.4%.
Total retail sales rose 7.6% , but this was down 1 percentage point from the first half of
the year. Vehicle sales were a major drag, falling -3.2% , down 4.3 percentage points from the first half of
the year. Home appliances were up 7.9% , but this was a steep drop of 13 percentage points from the first half.
With forests, beaches and traditional villages, Huizhou has big potential in tourism. The city is also aiming to ride the tech-upgrade momentum created by the GBA masterplan. Here is a deeper dive into one of the Bay’s more spacious municipalities.
Huizhou Airport’s new terminal is expected to be completed by the end of this month. As of July 31, passenger throughput has exceeded 1.5 million this year. This will jump to 2.5 million after the new terminal is officially put into operation, by the end of year, according the Huizhou Municipal Transportation Bureau.
Currently, Huizhou Airport has 12 airlines offering 36 flight routes to connect 31 cities around the country, while cargo and courier handling capacity reached 4679.6 tons, up 45.6% and 59.1% respectively. The airport’s existing capacity has reached its maximum.
Huizhou, the municipality that wraps itself around the GBA’s eastern end, is seeing a burst of private-sector growth that is showing up in its foreign trade data. In the first half, trade climbed 40.9% to RMB19.096 billion. That is still tiny compared to neighboring Shenzhen’s private-sector exports of more than RMB500 billion, but anyone who has visited Huizhou might be surprised to hear it is even that much. The municipality is what Shenzhen was 30 years ago: wide-open space and natural beauty.
More than a dozen local companies in Huizhou are recruiting laid-off employees from Samsung’s last cellphone plant in China. Biel Crystal Manufactory, a Huizhou-based cellphone glass maker; electric car maker BYD; TCL Tonly Huizhou, a manufacturer of audio and video products; and 11 other companies have been holding recruiting sessions for the last couple of days at Samsung’s plant in Huizhou, reportsCaixin Global.
The world’s largest smartphone producer, facing rising costs and stiffer competition in China, announced voluntary layoffs in early June. Samsung opened the Huizhou plant in 1992. The factory made about 17% of the company’s global smartphone production in 2017. Before the layoffs, the plant had about 4,000 workers.
The Huizhou Natural Resources Bureau recently released a detailed planning document for the city’s North High-Speed Railway Station, aiming to develop an integrated transportation hub and innovation center.
The hub will contain five stations for high-speed railways, intercity railways, city metros, long-distance buses, and city buses. It is where the Jiangxi-Shenzhen high-speed railway will criss-cross with the Guangzhou-Shantou railway. But it will be much more besides, based on a Transit-Oriented Development (TOD) model, which will include space for offices, cultural industries, education, and residential development. Kindergartens, middle schools and medical centers are all in the plan. Other facilities like public libraries, commercial centers and parks will also be built.
Drone Wars: Shenzhen-based drone maker DJI plans to start building drones at a factory in California amid security concerns raised by some US lawmakers. Read more.
Competitive Cities:Shenzhen was the most economically competitive city in China in 2018 for a fifth consecutive year but Hong Kong leads the pack in living environment, business environment and development sustainability, according to an annual ranking by Beijing-based National Academy of Economic Strategy. Read more.
New Flights: RwandAir launched thrice a week direct flights between Mumbai, India and Guanghzou, reducing the travel time between the two cities to six and a half hours. Africa-based RwandAir is the only foreign carrier operating in India using a special “fifth freedom rights” to go beyond to China. Read more.
HK Trade: According to Hong Kong’s Census and Statistics Department, in May, the value of total exports of goods decreased by 2.4% over a year earlier to HK$343.1 billion. Concurrently, the value of imports of goods decreased by 4.3% over a year earlier to HK$377.8 billion in May 2019. A visible trade deficit of HK$34.7 billion, equivalent to 9.2% of the value of imports of goods, was recorded in May 2019. Read more.
Car Quotas:Since the government added 100,000 quotas for car licenses to the market, the lowest auction price of Guangzhou’s license plate in June was RMB14,100, RMB25,900 less than the RMB40,000 recorded in May. Read more.
5G Handsets:China Mobile released 42 commercial 5G “terminal devices” jointly with 31 partners, which are expected to be released to the market at the end of July. Read more.
Huizhou Picks Up:Huizhou’s private enterprises boosted their share of foreign trade in the first five months, with RMB15 billion in total value, up 38.7% year-on-year, accounting for 13.1% of the city’s total. Read more.
ZTE Patents:ZTE ranks third in the world in terms of the number of essential 5G patents it has obtained. The company has already signed 25 commercial contracts internationally with companies in Europe, Asia-Pacific Area, and Middle East, cooperating with more than 60 foreign telecom operators to offer 5G services. Read more.
Zhaoqing Park: Zhaoqing’s Deqing district has allocated a 100-acre site for its first industrial park. The park will see a total investment of RMB800 million to build an industrial cluster focusing on electronics and electrical appliances. Read more.
Qianhai incentives: Shenzhen’s Qianhai is offering rental rebates of up to 50%, capped at RMB5 million annually, to attract those companies that have registered in Qianhai but are not yet operating in the area. Read more.
Healthy Gaming: Macau’s gaming industry is a pillar of the local economy and local taxation, but the sector should be kept in a state of “healthy development”, said Ho Iat Seng who made a formal announcement yesterday to run for Macau’s chief executive. Read more.
Superman Gift: Hong Kong tycoon Li Ka-shing is donating RMB100 million to his hometown Shantou University to fund tuition for all undergraduate students for the class of 2022 up until 2027, making it China’s first university to waive tuition fees for its entire student body. Read more.
PBOC HK Issue: The People’s Bank of China will issue central bank bills worth RMB30 billion in Hong Kong on June 26, with the aim to improve the yuan yield curve in the city. Read more.
Earthquake alert: Shenzhen will build an earthquake-alert system next year which will send out messages to residents through an app on mobile phones or computers. Read more.
New finance zone: Guangdong has issued a white paper to explore the establishment of a Guangdong-Hong Kong-Macau financial cooperation zone, which would trial cross-border finance, financial leasing, shipping and marine finance. Read more.
HK GDP: Hong Kong’s GDP increased by 0.6% in real terms in the first quarter of 2019 over a year earlier, compared with the 1.2% increase in the fourth quarter of 2018. Read more.
Huizhou lagging: According to Huizhou’s statistics bureau, average per capita disposable income reached RMB33,929 last year, with about 70% coming from monthly salary. The average salary rose 7% in real terms, slower than the average of the province. Read more.
IPOs coming: Among the 122 companies that have applied for IPOs on Shanghai’s new tech board, 17 are from Guangdong, behind Beijing (26), Jiangsu (21) and Shanghai (18). Of the southerners, Shenzhen supplied nine, Guangzhou four, Meizhou two, and one each from Foshan and Huizhou. Read more.
Environmental injunction: A court in Zhuhai has allowed the province’s first injunction against a project on a claim of potential environmental damage. Read more.
U.S. Deals: Guangdong Vice Governor Ouyang Weimin recently led an economic and trade mission of more than 40 companies to Mexico and the U.S., where 13 new investment projects were signed for an undisclosed amount. Read more.
New route: The Boshen Highway that goes from Huizhou’s Boluo county (博罗) to Shenzhen’s Longgang district will be connected with the Conghua/Dongguan Highway via a Qingxi sideline in the Dongguan section. Got all that? Basically, it adds an alternative route between Dongguan and Shenzhen. Read more .
Hydrogen cars: Foshan will see 1,000 hydrogen-powered vehicles hit the roads this year and will build 30 hydrogen-recharging stations. In Q1, RMB50 billion has been invested here in the hydrogen energy industry, already 41.17% of the total that was invested in 2018. Read more.
Smarter Shenzhen: The city will increase its financial investment in higher education to RMB18 billion this year, 28.57% up on last year, third-fastest in the country behind Beijing and Shanghai. According to Shenzhen Education Bureau, the city is exploring how to “improve the investment mechanism on higher education”. Read more .
AI Cometh: China’s artificial intelligence industry is expected to grow by six times its current size to reach US$11.9 billion in 2023. To date, 19 provinces have issued 26 AI-related policies to boost its development across smart manufacturing, fintech, digital contents, new media, new retail and smart security. Read more .
Water-pollution cleanup: Shenzhen will issue a RMB16 billion bond, with half to be used in water pollution treatment projects in the Bao’an district and most of the rest on river-water pollution control projects in the Longgang district. Read more .
Konka Going to Chongqing: Shenzhen-based Konka Group is planning to build a RMB30 billion semiconductor and photoelectric industrial park in Chongqing with investment of up to RMB7.5 billion in the project’s first phase. Read more.
LG in OLED Project: LG Display, the world’s largest LCD panel maker from South Korea, has begun construction of an OLED panel production plant in Guangzhou, making it the first large-sized OLED panel production line in China. The first phase will cost RMB46 billion, producing larger TV displays. It will be LG’s third production line in Guangzhou. Read more
Prices Spike: The Consumer Price Index (CPI) jumped to 2.7% nationwide in May, mainly due to surge in food costs. Although this was the largest increase since February 2018, it was still lower than the government’s price-regulation target of 3%. The Producer Price Index (PPI) rose 0.6% YoY. Read more.