Guangzhou has secured two landmark deals with major multinational companies attending the 2nd China International Import Expo in Shanghai. One is with UK-based pharma giant AstraZeneca, the other with Swiss-Swedish industrial giant ABB Group, both members of the Fortune 500.Continue reading Guangzhou lands two big deals in Shanghai
After the provincial government leaked Shenzhen’s GDP headline number for the first three quarters yesterday, causing a rush of commentary by bloggers and real-estate analysts, the city government decided today to clarify the reasons why its economy slowed so sharply, to 6.6% from 7.4% in the first six months.
Understandably, the report was full of numbers that the Shenzhen Daily tried to portray in a positive light.
At the heart of the data was an unmistakeable weakness: a sharp slowdown in industrial output and input, as we had expected in our report published yesterday.Continue reading Shenzhen confirms 6.6% growth, blames nothing
Something is going on in Shenzhen. The city has not yet released any reports on its economic performance in the first three quarters, yet provincial data show that the city’s GDP growth dropped sharply in Q3.
Private commentators have been reporting the provincial data today, many with alarmist analysis. This is rightly so: the 6.6% growth number recorded by Shenzhen for the first three quarters of this year follows 7.4% reported for the first six months. If accurate, that is an unprecedented quarterly slowdown.Continue reading Shenzhen sees sharp slowdown in Q3
The timing could not be better for the Greater Bay Area, home to arguably the country’s most ambitious high-speed railway network masterplan: The central government has decided to accelerate local governments’ spending on infrastructure – by doubling their originally approved budgets for this year.
Although we will need to wait for further details to trickle down, it seems likely that Guangdong will move fast on this decision. The province isn’t included specifically in the new list of projects approved for spending, but this is likely because it already has so many major railway projects under way. However, a few of the region’s more ambitious plans have been languishing recently while awaiting approval from Up North. Those that spring to mind are the CrossBay Railway, which will run from Zhuhai directly under the bay to Shenzhen, and the second Intercity Railway linking Guangzhou to Hong Kong, which will pass through Shenzhen’s Qianhai and run all the way out to Lantau.
That is besides plans for 600 km/h Maglev lines, will likely now be given more serious study.
Watch this space. We will update in due course.
Dongguan is on a mission to raise investment – local and foreign – for new projects across the municipality, and early efforts are paying off, with contracted investment rising 35.7% in the first half of this year, according to official data.
According to Dongguan Daily, the city introduced 2,062 new domestic and foreign-funded projects in the first six months, with total contracted investment of RMB 107.322 billion. Nearly two-thirds of this amount was committed into 122 large-scale projects worth a collective RMB 96.024 billion, a 54.85% jump over the same period last year. Among these, 85 projects exceeded RMB 100 million each, and 37 were by foreign companies.
The four biggest of these projects are located in the Binhai New Area, which is being built into a major hub for transport, logistics, and new strategic industries. Read also our Dongguan overview for more detail.
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.
The provincial capital is continuing to restructure its economy amid a slowdown in foreign trade, which is having a knock-on effect on the manufacturing sector. Services are growing robustly, investment is surging, and retail sales are holding steady, latest official economic data shows.Continue reading Guangzhou: upgrading continues
Shenzhen continues to weather the slowdown in foreign trade remarkably well, judging by data for July. Fixed-asset investment rose 16.2% YoY, powered by infrastructure investment (+46.9%). And, thanks to growth in the key industries of tech and pharmaceuticals, industrial output has held up (+6.1%), too. Only trade is showing weakness, and it’s far better than had been anticipated: exports were still up over the first seven months (+4.6%), while imports continued to struggle (-8.9%).
Shenzhen Capital Group has just celebrated its 20th anniversary. With RMB347.2 billion of funds under management, the state-owned company, which comprises a diverse range of fund types, can boast a pretty impressive track record:
- Invested RMB45.2 billion in 1,016 portfolio companies;
- 151 of which have gone on to list on 16 capital markets worldwide;
- Accounts for 12.4% of the value of all companies listed on A-share ChiNext;
- Compound annual growth rate of 20%.
Huizhou, the Greater Bay’s easternmost municipality, reported a mixed bag of economic data for July. Industrial output slumped, yet fixed-asset investment and consumption both grew strongly.