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%).
Continue reading Infrastructure, industries, keep Shenzhen humming
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%.
Continue reading Shenzhen Capital turns 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.
Continue reading Huizhou: production down, investment up
In the wake of the Qianhai Cooperative Forum 2019, which was held at the weekend, the city has released statistics showing how fast the special economic zone is ramping up investments and output.
Official data shows utilized foreign direct investment in Qianhai jumped 12.1% to $2.533 billion in the first six months. Hong Kong companies were the most aggressive, and now account for nearly 90% of the zone’s total utilized FDI of US22 billion. Their utilized FDI was 60% of Shenzhen’s and 20% of the entire province’s during the first half.
Continue reading HK investment ramps up in Qianhai
Shenzhen’s GDP in the first half grew 7.4% YoY to RMB1.213 trillion, driven by three main trends:
1) A robust services industry, especially in the internet sector;
2) Resilient consumers, especially online, with total retail sales up by 8.3%; and
3) A dollop of government cash put into infrastructure.
Continue reading Shenzhen’s economic data unpacked
Hongkong-based AI firm SenseTime Group Ltd., one of the world’s most valuable unicorns, has formed a strategic alliance with Abu Dhabi to set up an EMEA (Europe, Middle East and Africa) Artificial Intelligence R&D hub, according to a company statement.
SenseTime is the world’s fastest growing pure-play AI company with a valuation of over US$4.5 billion. The company offers customers AI as a “value creation” tool in sectors ranging from autonomous driving to medical image analysis and remote sensing.
Continue reading SenseTime goes to Abu Dhabi