CHINA> Focus
    Blowing up a property bubble in China
    By Andrew Moody, Zhang Qi and Xin Zhiming (China Daily)
    Updated: 2009-11-04 10:10

    Blowing up a property bubble in China

    When China announced its massive stimulus plan, the package was aimed at putting the economy back on a long-term growth trajectory - not stoking another property boom.

    But fears are growing that the 4-trillion-yuan ($586 billion) financial boost is being siphoned to inflate an unsustainable property bubble.

    For many potential homebuyers, house prices were already too high when the package was launched in November last year. Yet the gap between salaries and house prices could widen even further if the record sums now being spent at land auctions are any indicator.

    Blowing up a property bubble in China

    Across the country, property plots known as di wang, or "land kings", are fetching unprecedented amounts in bouts of frenzied bidding.

    What has surprised many seasoned analysts, though, is that most of the bidding is being done by State-owned enterprises (SOEs), which have access to vast amounts of cheap financing thanks to the stimulus package.

    Of the 10 most expensive land purchases in China's major cities this year, six were made by SOEs.

    Last month, Poly Real Estate Group Co Ltd, a leading Chinese property developer and subsidiary of State-owned conglomerate Poly Group, paid 1.79 billion yuan - almost 7,000 yuan per sq m - for a plot in Nanjing, capital of Jiangsu province, making it the city's most expensive piece of land for commercial development.

    Related readings:
    Blowing up a property bubble in China Check zooming property prices
    Blowing up a property bubble in China China probably not to extend favorable measures in property sector
    Blowing up a property bubble in China China's property climate index up for sixth straight month
    Blowing up a property bubble in China Home sales registrations fall 24%

    Blowing up a property bubble in China Home rates going through the roof, say city dwellers

    China Overseas Land and Investment, a development firm listed on the Hong Kong Stock Exchange and a subsidiary of State-owned China State Construction Engineering Corp, in September purchased land in Putuo district of downtown Shanghai for 7 billion yuan, more than 22,000 yuan per sq m. Part of the plot attracted no bidders when it was put up for sale at 1.6 billion yuan in July last year.

    The deals are causing consternation among Chinese government officials, including Li Rongrong, chairman of the State-owned Assets Supervision and Administration Commission, who said recently that SOEs should focus more on core activities.

    Despite concerns over the stimulus money, however, the situation has presented the bosses at SOEs with a dilemma as the quick returns on property ensure enterprises meet the government-set performance targets.

    "Because of the speed in which property can be developed in China, SOEs can get a return from real estate development in just one year. Returns from investments in research and development or a new manufacturing process take much longer," said Bing Zhang, of Shanghai-based management consultants A.T. Kearney.

    However, Pan Shiyi, chairman of Soho, a major non-State commercial developer, said the behavior at land auctions of some State-owned bidders defies logic.

    One of his company's competitors, Franshion Properties, a wholly owned subsidiary of State-owned Sinochem, successfully bid 4.06 billion yuan for land in Beijing in June.

    "It was far higher than what other bidders were offering," said Pan. "Most SOEs have easy access to bank loans, and many are turning to real estate because they are reluctant to invest in manufacturing while there is still a problem of over-supply after the downturn."

    Many people operating in the property sector are worried that SOEs have had the major share of

       Previous page 1 2 Next Page  

     

    中文字幕无码播放免费| 国产午夜鲁丝无码拍拍| 国产50部艳色禁片无码| 影音先锋中文无码一区| 中文字字幕在线一本通| 国产精品多人p群无码| 亚洲中文字幕无码不卡电影| 亚洲一区中文字幕久久| 亚洲欧美日韩中文播放| 99久久人妻无码精品系列蜜桃| 日日日日做夜夜夜夜无码| 亚洲激情中文字幕| 影音先锋中文无码一区| 亚洲AV中文无码乱人伦在线视色| 人妻系列无码专区无码中出| 亚洲日韩乱码中文无码蜜桃臀网站 | 国产成人无码精品一区二区三区| 中文字幕在线播放| 天堂а√在线地址中文在线| 精品久久久久中文字幕日本| 超清中文乱码字幕在线观看| 中中文字幕亚洲无线码| 人妻一区二区三区无码精品一区| 国产精品无码成人午夜电影| 国产aⅴ无码专区亚洲av| 国产精品99精品无码视亚| 精品少妇人妻av无码久久| 无码视频在线观看| 无码人妻精品一区二区三区99仓本 | 免费精品无码AV片在线观看| 亚洲AV无码专区亚洲AV伊甸园| 免费无码H肉动漫在线观看麻豆| 中文字幕日韩精品有码视频 | 四虎影视无码永久免费| 中文字幕在线最新在线不卡| 在线日韩中文字幕| 无码人妻少妇久久中文字幕| 精品多人p群无码| 午夜不卡久久精品无码免费| 成人无码精品1区2区3区免费看| 精品三级AV无码一区|