CX Daily: How China’s Housing Market Landed In The Deep Freeze
Cover Story: How China’s housing market landed in the deep freeze
On Oct. 7, dozens of homeowners gathered at the sales office of a new residential development in Nanyang demanding refunds. The value of their homes depreciated at least 30% in less than a year since purchase.
Nanyang, a city of nearly 10 million people in central China’s Henan province, is a microcosm of the real estate market in China’s third- and fourth-tier cities. In the past few years, with large inflows of migrants from rural areas into smaller cities like Nanyang, developers such as China Evergrande Group and Country Garden Holdings Co. Ltd. rushed in to build housing.
Then the central government, concerned about risky overheating in the property sector, moved to cool things down. Since President Xi Jinping declared in 2017 that “houses are for living in, not for speculation,” policymakers have imposed a series of measures to limit rampant borrowing by developers and tighten standards for mortgage lending. The real estate sector’s industrywide chill reflects those policies as the world’s most populous nation still faces a housing shortage, industry experts say.
China’s central bank says Evergrande risks are controllable
China should tailor carbon emission target deadlines for different industries, government researcher says
China should set tailored targets for different industries based on the difficulty they will have in meeting the 2030 peak carbon goal, leading government environmental researcher Wang Jinnan said, noting the aim of avoiding concentrated pressure on emission reductions in the period from 2026 to 2030.
Wang, president of the Ministry of Ecology and Environment’s Environmental Planning Institute, made the comment at a Caixin co-sponsored international forum on carbon neutrality, which was held Sunday in the southern metropolis of Shenzhen.
FINANCE & ECONOMY
China’s GDP growth slows to 4.9% amid power crunch, real estate woes
China’s GDP grew 4.9% year-on-year (link in Chinese) in the third quarter of 2021, as expansion continued to slow amid a power crunch, soaring commodity prices and tightening restrictions on the real estate industry.
The figure came in just shy of the median estimate for 5% (link in Chinese) growth in a Caixin survey of economists. It was much lower than the 7.9% year-on-year growth rate for the second quarter and the 12.7% rate for the first half of the year.
In the first nine months of 2021, China’s GDP was up 9.8% year-on-year, according to data from the National Bureau of Statistics (NBS).
Charts of the Day: Chinese banks’ enthusiasm grows for climate-risk disclosure
State-owned commercial lender Bank of Communications Co. Ltd. recently became the sixth and latest Chinese bank to support the Task Force on Climate-Related Financial Disclosures (TCFD), a global initiative to develop recommendations for businesses to disclose risks and opportunities related to climate change.
The move exemplifies growing popularity of the task force among Chinese companies, which are paying more and more attention to sustainable development.
China to roll out new lending tools to support cutting emissions
President Xi, Singapore Prime Minister Lee discuss jointly boosting economic recovery
Singapore Prime Minister Lee Hsien Loong and Chinese President Xi Jinping spoke on the phone Friday, discussing ways to jointly boost economic recovery.
According to a readout issued by the Singapore Ministry of Foreign Affairs, Lee and Xi talked about a host of issues that both countries can work together on, such as cross-border and supply chain connectivity, trade and investment, smart cities and climate change.
They also said there should be more collaboration in newer areas such as the green economy and the digital economy.
China clears foreign investors to trade more onshore derivatives
China will allow qualified foreign investors to trade more onshore derivative products in the latest step to open its financial market.
Investors under the Qualified Foreign Institutional Investor (QFII) program will be able to trade commodity futures, commodity options and stock index options starting Nov. 1, the China Securities Regulatory Commission said Friday.
Quick hits /
Goldman gets permission to take full control of its China securities venture
Hong Kong’s new China stock index futures fall in debut
China presses U.S. to end official dealings with Taiwan
BUSINESS & TECH
|Alibaba’s first self-developed chip sits on display at the World Internet Conference in Wuzhen, East China’s Zhejiang province, in October 2019. Photo: VCG|
Exclusive: Alibaba set to launch its own cloud server chip
Alibaba Group Holding Ltd. is set to launch its first custom-designed processor chip to power its cloud computing business, several sources told Caixin, in a move to compete with U.S. rivals such as Amazon.com Inc. and domestic challengers like Huawei Technologies Co. Ltd. in the burgeoning cloud market.
Alibaba’s new chip, based on the architecture of Arm Holdings, has been under development by Alibaba’s chipmaking subsidiary Pingtouge since 2019. The product’s tape-out — which is the final phase of the design process before it is submitted for manufacturing — was completed in the middle of the year, using the most advanced manufacturing process available in the world, the sources said.
UN biodiversity conference in China concludes with pledges for more funding
The United Nations biodiversity conference in Southwest China’s Yunnan province concluded Friday with the adoption of the Kunming Declaration, and several countries pledged new funding to promote biodiversity.
Under the declaration, more than 100 countries committed to ensuring the development, adoption and implementation of an effective post-2020 action plan for setting protection goals for global biodiversity over the next decade. The goal of the framework is “to reverse the current loss of biodiversity and ensure that biodiversity is put on a path to recovery by 2030 at the latest, toward the full realization of the 2050 Vision of ‘Living in Harmony with Nature,’” according to the declaration.
Opinion: Kunming conference offers vision for biodiversity’s future
Aluminum giant says it’s seeking help from unnamed entities for unspecified ‘difficulties’
Aluminum giant China Zhongwang Holding Ltd. disclosed that two of its major production units face unspecified “severe difficulties” and are seeking outside help from unnamed entities even as the company’s rivals report blockbuster profit growth.
The Friday filing with the Hong Kong Stock Exchange offers investors one of the first slivers of information about Zhongwang’s situation since trading of its shares were suspended in August when the company delayed its first-half report. Later that month, six businesses linked to the company’s founder were convicted of fraud in a U.S. court.
Top electric car battery-maker CATL signs up new U.S. customer
China's Contemporary Amperex Technology Co. Ltd. (CATL), the world's top electric car battery maker, agreed to supply a new U.S. manufacturer of commercial electric vehicles, adding to its growing list of customer deals with global automakers ranging from Tesla Inc. to Volkswagen AG and General Motors Co.
CATL agreed to a four-year deal to provide Electric Last Mile Solutions Inc. (ELMS) with lithium-iron phosphate (LFP) batteries to power its electric delivery van, which the U.S. automaker, based in a suburb of Detroit, began building last month at its factory in Indiana, ELMS said in a statement issued late last week.
Quick hits /
Steel company employees indicted for falsifying emissions data
Editorial: China should waste no time in ending dual-track power pricing
Fire leaves 46 dead in Taiwan
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