Chinese Economics Thread

[Hendrik_2000]

HOusing demand in China will never subside It is cultural No home no honey. I feel sorry for those singleton in China

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Home sales in China continue to set records
Commercial sales break 13 trillion yuan for the first time, while total sales area exceeds 1.6 billion square meters
By ASIA TIMES STAFF MARCH 1, 2018 5:52 AM (UTC+8)
China’s commercial housing sales in 2017 have exceeded 13 trillion yuan (US$2.05 trillion) for the first time, while sales for the year ahead are expected to decline,

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reported.

Sales areas in 2017 exceeded 1.6 billion square meters, according to the National Bureau of Statistics. Both figures were records for two consecutive years, said Zhang Dawei, a senior analyst at Centaline Property Agency.

Gu Yunchang, chairman of the National Real Estate Chamber of Commerce Union, expects that sales in 2018 will experience a downward trend as a whole, while housing prices are expected to remain steady, without dramatic rises or declines.

The investment in real estate development in 2017 was 10.98 billion yuan, an increase of 7% over the previous year. Investment in commercial housing accounted for 7.5 trillion yuan, up 9.4%. That figure is also expected to slow down, said Gu.

 

[Hendrik_2000]

They are going gangbuster in semiconductor now building FAB everywhere to reduce dependency from western supplier
Via cirr
China is raising up to $31.5 billion to fuel chip vision

The secretive China IC Fund plays a key role by steering overall investment and strategy

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Last Updated at March 2, 2018 00:50 IST

A researcher plants a semiconductor on an interface board during a research work to design and develop a semiconductor product at Tsinghua Unigroup research centre in Beijing, China. Photo: Reuters

China’s government aims to raise as much as 200 billion yuan ($31.5 billion) to invest in homegrown chip companies and accelerate its ambition of building a world-class semiconductor industry, people familiar with the matter said.

The state-backed China Integrated

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is in talks with government agencies and corporations to raise at least 150 billion yuan for its second fund vehicle but is angling for up to 200 billion yuan, the people said, asking not to be identified talking about a plan that hasn’t been publicised. It intends to begin deploying capital in the second half of the year, they added.

The firm will again invest in a wide range of sectors from processor design and manufacturing to chip testing and packaging, potentially benefiting industry leaders from telecoms gear makers Huawei Technologies and ZTE to major players such as the

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The first fund —about 140 billion yuan — had gone toward more than 20 listed companies, including

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and contract chipmaker Semiconductor Manufacturing International, the people said.

Smaller chip players gained in the afternoon. Integrated circuit manufacturer Jiangsu Changjiang Electronics Technology climbed as much as 6.2 per cent in afternoon trading in Shanghai, while chip packager China Wafer Level CSP gained almost 5 per cent.

China’s trying to reduce a reliance on some $200 billion of annual semiconductor imports, which it fears undermines national security and hampers the development of a thriving technology sector. The country envisions spending about $150 billion over 10 years to achieve a leading position in design and manufacturing, an ambitious plan that U. S. executives and officials have warned could harm American interests.

While officials have suggested their initial vision of attaining pole position in chips may have been unrealistic, the government remains intent on finding ways to reduce imports.

Established in 2014, the secretive China IC Fund plays a key role by steering overall investment and strategy. For its second fund, the state-backed outfit will again turn to central and local government agencies as well as the government-backed enterprises that contributed previously, the people said.

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[Anlsvrthng]

HOusing demand in China will never subside It is cultural No home no honey. I feel sorry for those singleton in China

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View attachment 45619

Home sales in China continue to set records
Commercial sales break 13 trillion yuan for the first time, while total sales area exceeds 1.6 billion square meters
By ASIA TIMES STAFF MARCH 1, 2018 5:52 AM (UTC+8)
China’s commercial housing sales in 2017 have exceeded 13 trillion yuan (US$2.05 trillion) for the first time, while sales for the year ahead are expected to decline,

Please, Log in or Register to view URLs content!

reported.

Sales areas in 2017 exceeded 1.6 billion square meters, according to the National Bureau of Statistics. Both figures were records for two consecutive years, said Zhang Dawei, a senior analyst at Centaline Property Agency.

Gu Yunchang, chairman of the National Real Estate Chamber of Commerce Union, expects that sales in 2018 will experience a downward trend as a whole, while housing prices are expected to remain steady, without dramatic rises or declines.

The investment in real estate development in 2017 was 10.98 billion yuan, an increase of 7% over the previous year. Investment in commercial housing accounted for 7.5 trillion yuan, up 9.4%. That figure is also expected to slow down, said Gu.

There are thousand mroe example for housing price crash , that pulled into recession / depression the economy over the cetnuries(milenias, if we consider the ancient rome : ) .

You can still see the marks of them as a tourist, or simple resident living in a house somewhere in europe that was desinged hundred year(s) ago on undrealsitic conditions , for customers that get the purchasing power from cheap loans.

But of course , the Chinese buble will be diferent, as the UK, US, Japanese, Australian, Austrian, German, Hungarian, Dutch ,Spanish and so on was diferent from all previous one, and was granted to last forever : D


Generaly, the the last ( and most destructive for long term prospect) phase of an uncrontroled financial buble is when the households loaded up with debt, in the form of expensive mortgages.

 

[Anlsvrthng]

They are going gangbuster in semiconductor now building FAB everywhere to reduce dependency from western supplier
Via cirr
China is raising up to $31.5 billion to fuel chip vision

The secretive China IC Fund plays a key role by steering overall investment and strategy

Please, Log in or Register to view URLs content!

That is one of the most critical industrial area for China /Russia.
The semi industry is quite weak over there, and without that it is not possible to make satelites/missiles/safe goverment networks.

For teh military they need to bring up the domestic industry onto the 2005-10 level.

 

[TheHack]

Cyber-security law causing ‘mass concerns’ among foreign firms in China

New rules have added to costs and had a big impact on how they do business, survey finds, and tax regime and land acquisition policy are also headaches

Beijing’s cyber-security regulations are a big source of concern for foreign businesses in China, a survey by the American Chamber of Commerce in South China has found.
Most of the 215 foreign firms polled said the country’s tax regime, land acquisition policy and cyber-security law were all headaches, according to a white paper and report on the business environment in China released on Thursday.
“It created uncertainties within the investment community and it’s resulting in, at the minimum, postponement of some R&D investment,” Seyedin said.

Under the controversial new law, “operators of critical information infrastructure” must store personal information and important business data in China, provide unspecified “technical support” to security agencies and pass national security reviews. Those critical areas include information services, transport and finance. Companies that store or provide internet data overseas without approval can have their business suspended or shut down and their business licence revoked.
The other top worry for foreign companies was tax, according to the survey, and Seyedin called on policymakers to cut taxes, particularly following corporate tax cuts in the US, to make China a more competitive place to do business.

Foreign investment contributed about 33 per cent of China’s gross domestic product and 27 per cent of its employment last year, the chamber found.

 

[manqiangrexue]

There are thousand mroe example for housing price crash , that pulled into recession / depression the economy over the cetnuries(milenias, if we consider the ancient rome : ) .

You can still see the marks of them as a tourist, or simple resident living in a house somewhere in europe that was desinged hundred year(s) ago on undrealsitic conditions , for customers that get the purchasing power from cheap loans.

But of course , the Chinese buble will be diferent, as the UK, US, Japanese, Australian, Austrian, German, Hungarian, Dutch ,Spanish and so on was diferent from all previous one, and was granted to last forever : D


Generaly, the the last ( and most destructive for long term prospect) phase of an uncrontroled financial buble is when the households loaded up with debt, in the form of expensive mortgages.

If you already know that Chinese economy is different, then why are you bringing up Japan and UK's housing crash? To make fun of them? This is the Chinese economy thread; your post is irrelevant.

 

[Hendrik_2000]

Cyber-security law causing ‘mass concerns’ among foreign firms in China

New rules have added to costs and had a big impact on how they do business, survey finds, and tax regime and land acquisition policy are also headaches

Beijing’s cyber-security regulations are a big source of concern for foreign businesses in China, a survey by the American Chamber of Commerce in South China has found.
Most of the 215 foreign firms polled said the country’s tax regime, land acquisition policy and cyber-security law were all headaches, according to a white paper and report on the business environment in China released on Thursday.
“It created uncertainties within the investment community and it’s resulting in, at the minimum, postponement of some R&D investment,” Seyedin said.

Under the controversial new law, “operators of critical information infrastructure” must store personal information and important business data in China, provide unspecified “technical support” to security agencies and pass national security reviews. Those critical areas include information services, transport and finance. Companies that store or provide internet data overseas without approval can have their business suspended or shut down and their business licence revoked.
The other top worry for foreign companies was tax, according to the survey, and Seyedin called on policymakers to cut taxes, particularly following corporate tax cuts in the US, to make China a more competitive place to do business.

Foreign investment contributed about 33 per cent of China’s gross domestic product and 27 per cent of its employment last year, the chamber found.

Most of those foreign investment are NOT WESTERN INVESTMENT They make small percentage of FDI in China . China neighbor are the largest investor in China . Taiwan, Hongkong, Singapore, Korea, Japan
So the Asian investor can live with new security requirement

 

[Hendrik_2000]

There are thousand mroe example for housing price crash , that pulled into recession / depression the economy over the cetnuries(milenias, if we consider the ancient rome : ) .

You can still see the marks of them as a tourist, or simple resident living in a house somewhere in europe that was desinged hundred year(s) ago on undrealsitic conditions , for customers that get the purchasing power from cheap loans.

But of course , the Chinese buble will be diferent, as the UK, US, Japanese, Australian, Austrian, German, Hungarian, Dutch ,Spanish and so on was diferent from all previous one, and was granted to last forever : D


Generaly, the the last ( and most destructive for long term prospect) phase of an uncrontroled financial buble is when the households loaded up with debt, in the form of expensive mortgages.

As I said before those technical analysis is reading tea leaves I don't know any one can get rich from reading technical analysis . "Past is bad future predictor of future"

Anyway China's urbanization rate is still low something like 56% vs 90% in the developed world
So in the next 20 years China has to move something line 400 million country folk into the cities So demand for housing, school, transport, road, shopping mall will be robust for decades to come .

Plus most Chinese buy house as investment too because it is cultural thing .You can see it in HOngkong, Singapore, Taiwan. It is their prime investment goal . Something solid like brick and land
Compare to those place the housing prices in China are still relatively low.

The risk of of financial meltdown due to mortgage failure are low because of the requirement for high down payment in any home purchase in China. Compare to western world China personal loan is still low

The percentage of population living in urban areas was 56.1% in April of this year, with a target rate of 60% by 2020. According to the National Bureau of Statistics, migrant workers comprised 19.76% of China's total population in 2013, while urban residents comprised 35.7% of the total population.Dec 28, 2016

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[Hendrik_2000]

That is one of the most critical industrial area for China /Russia.
The semi industry is quite weak over there, and without that it is not possible to make satelites/missiles/safe goverment networks.

For teh military they need to bring up the domestic industry onto the 2005-10 level.

China is not behind in semiconductor contrary to your prejudice. The west only lead is in CPU and GBU Even that is being challenged right now . China weakness is in manufacturing FAB due to high cost and technical embargo but those weakness are being addressed right now. Less than a quarter of semiconductor is in the US hand

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As I wrote in the Journal of Economic Affairs, China dominates the key digital technologies:

• Liquid crystal displays, which are employed in a wide variety of products, with $100 billion in annual sales. South Korea controls 35% of the market, Taiwan 25%, and China 20%.
• Light-emitting diodes (LEDs) are produced mainly in China and Taiwan.
• China and Taiwan dominate the production of semiconductor lasers, the energy source for fiber optic communications.
• Solid state sensors, which generate images in digital cameras and related devices, are produced mainly in Taiwan and Japan.
• Flash memory is produced mainly in South Korea, Japan and China, with only 10% of world output coming from the United States.
• Integrated circuits are a $270 billion global industry. Most are produced in Taiwan and South Korea, and China has undertaken an aggressive investment program in the industry. Less than a quarter of world output is produced in the United States.
• Solar energy panels, a $30 billion industry, are dominated by China.

On several occasions the US Department of Defense has had to abandon high-tech research projects that require sophisticated micro-manufacturing because it could not find an American manufacturer capable of executing the task. Defense Department rules exclude the use of foreign manufacturers, and in some fields the only technical capacity is located in South Korea, Taiwan, or other countries.

 

[Anlsvrthng]

If you already know that Chinese economy is different, then why are you bringing up Japan and UK's housing crash? To make fun of them? This is the Chinese economy thread; your post is irrelevant.

II agree, China is as different as say the UK housing bubble was different from the US or from the current Chinese one.

: D

Every bubble different.
They common only in one important aspect: they last longer than your sanity to stay on the sideline .