Caixin

Residential buildings under construction in Shanghai, China, on 9 November 2022. (Qilai Shen/Bloomberg)

China lines up yet more aid for the property sector, but will it be enough?

Caixin notes that China is poised to roll out more policies to assist developers in an increasingly desperate attempt to arrest a protracted downturn of the multi-trillion-dollar property sector. However, amid the perform storm of changing demographics, Covid-19 disruptions, weakening demand and Beijing’s campaign of deleveraging, industry practitioners are bracing for a tough battle.
People cross a street on The Bund in Shanghai, China, on 12 October 2022. (Hector Retamal/AFP)

China’s rich are getting richer

In 2021, more Chinese families became either rich or richer, with Guangdong overtaking Beijing as the region with the most high-net-worth families in the country. These high-net-worth households largely made up of entrepreneurs, real estate investors and professional financial investors, are expected to transfer an estimated 18 trillion RMB of wealth to the next generation over the next decade.
Employees work on the assembly line during a construction completion event of SAIC Volkswagen MEB electric vehicle plant in Shanghai, China, 8 November 2019. (Aly Song/File Photo/Reuters)

Will Europe pour more money into China?

This year’s dramatic geopolitical changes have significantly altered the calculus for foreign investment in China as large European enterprises are increasingly taking the lead and Japanese businesses are retreating in manufacturing and advancing in services. American companies, on the other hand, are frozen as the US government imposes tough sanctions on China’s tech sector and as manufacturers weigh strategic moves back to the US.
Consumers purchase pork in supermarkets in Taiyuan, Shanxi, 9 November 2022. On the same day, China's consumer price index (CPI) in October, released by the National Bureau of Statistics, rose 2.1% year-on-year, 0.7 percentage points lower than last month. (China News Agency/Zhang Yun)

Inflation under control in China, but rising pork prices says otherwise

Despite the wave of interest rate increases from central banks globally, China has gone the other way and cut borrowing cost, signalling a control in inflation in the country. But food prices, in particular pork products, have been soaring, and the continued weak domestic demand amid ongoing Covid-19 restrictions and a crisis of confidence among consumers worried about jobs and wages, pose major risks to China's economic stability.
Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken 25 February 2022. (Florence Lo/Illustration/File Photo/Reuters)

The end of the global chip shortage: Now, chips won't sell

The global semiconductor shortage seems to be over as demand for consumer electronics falls, leaving smartphone manufacturers stuck managing high inventories. However, China’s wafer foundry expansion momentum has not slowed, as part of the country's core objective to develop the sector amid tightened US sanctions.
A person walks past a JD.com advertisement for the "618" shopping festival displayed outside a shopping mall in Beijing, China, 14 June 2022. (Carlos Garcia Rawlins/File Photo/Reuters)

Chinese internet giants gear up for global e-commerce push

Amid tightening Covid-19 controls, disrupted logistics and e-commerce user base plateauing in 2020, Chinese e-commerce companies are facing tightened scrutiny and slowing growth in revenue. Furthermore, advertising — the most important source of revenue for internet companies — has been weak for more than a year. This leads Chinese tech companies to turn their attention overseas, and those without an overseas development plan will be left behind. Caixin journalists tell us more.
A worker walks on a scaffolding at a construction site of an apartment building under refurbishment in Beijing, China, 20 July 2022. (Thomas Peter/Reuters)

Export slowdown reveals cracks in one of China’s economic pillars

With China’s economy already facing drags from consumer spending and the real estate sector, the slowdown in goods exports poses a significant problem as they make up a sizeable share of the country's GDP. Will Beijing reconsider some of the policies such as its zero-Covid policy, tech sector crackdown, and restrictions on real estate?
A worker pushes a trolley along a road outside a construction site at the central business district in Beijing, China, on 8 July 2022. (Wang Zhao/AFP)

Has China’s monetary policy reached its limit?

China's central bank is scrambling to increase demand for borrowing by using nearly every instrument in its toolbox. But the impact has so far been limited, as Chinese companies and households are trapped in a crisis of confidence in the economy amid slowing growth and the impact of strict anti-Covid measures. What more can China do to save the economy?
This file photo taken on 2 August 2022 shows a woman pushing a trolley with twins along a street in Beijing, China. (Noel Celis/AFP)

China's 'little emperors' of the 1980s are now the most burdened generation

China has more than 170 million sandwich-generation families. While the sandwich generation grew up in the 80s as "little emperors", they are feeling the strain now with the double pressure of looking after their children and the elderly. Most of them focus on "children first", but if a married couple’s parents live in two different cities, that makes it even harder to care for all four parents at the same time.