Page 192 - 2020 White Paper on the Business Environment in China
P. 192
0 White Paper on the Business Environment in China
2.5 Construction and Real Estate
Key Take-Aways A report from the Economic and Strategic Planning
Department of the Bank of China (Hong Kong)
The construction industry in China is forecasted a rise of 7.3 percent in China’s aggregated
expected to record a compound annual investment in 2019, up 1.4 percentage points from
growth rate (CAGR) of 8.9 percent to reach 12,389.2 2018. Investment’s contribution to the growth of
billion yuan by 2023. China’s gross domestic product was also expected
to rise by 0.5 percentage points to 2.64 percentage
China’s domestic fixed-asset investment (FAI) points. In other words, about 40 percent of 2019’s
in highways and waterways registered steady economic growth was expected to be generated by
growth in the first eight months of 2019. Total investment. Infrastructure facilities will continue
FAI in highways and waterways reached 1.42 to take a large portion, but the emphasis will be
trillion yuan (about US$199.47 billion) during put on improving weak links and consolidating
January-August 2019, a year-on-year growth of 3.7 the less-developed areas. The State Council issued
percent. Specifically, investment in inland rivers a guideline in 2018 on beefing up the investment
expanded 0.6 percent to reach 36.83 billion yuan, in nine kinds of infrastructure facilities including
while that of highway construction recorded the railways, highways and waterways, airports, water
fastest growth rate of 3.8 percent to 1.35 trillion conservancy, energy and environmental protection
yuan during the period. as well as infrastructure conducive to agriculture
and rural development. Railway and highway
Twelve ministries, including the Ministry of construction will be mainly used to facilitate
Transport, have issued a four-year green travel the implementation of significant development
action plan (2019-22), which aims to promote strategies, including the Beijing-Tianjin-Hebei
green travel and improve the quality of public coordinated development, the Belt and Road
transportation services, as well as raise people’s Initiative, the Yangtze River Economic Belt, the
awareness of the benefits of green travel. Guangdong-Hong Kong-Macao Greater Bay Area
and the Xiongan New Area. Rural infrastructure
The country’s property market will continue to construction will be used to enhance agricultural
stabilize into 2020 as the central authorities further productivity and boost village development, while
stress establishing a long-term mechanism for the urban infrastructure construction will focus on
healthy development of the sector. government-subsidized housing, public transit and
drainage and waterlogging prevention systems. The
The market for real estate asset management Ministry of Transport, China Railways Corporation
has emerged on the mainland. Big property owners, and Civil Aviation Administration of China have
however, can’t find enough qualified managers. released infrastructural construction targets for
The competition for asset managers has intensified 2019 that included fixed-assets investment of
as foreign investors join the market. 1.8 trillion yuan in highways and waterways, 800
billion yuan in railway investment and another 85
Background billion yuan in airport construction. Specifically,
rural roads of 200,000 km long and waterways
Investment, an important engine of the Chinese of 400 km long will be built, while new rail lines
economy, is expected to grow faster, allowing of some 6,800 km long will be laid, up 45 percent
China to better cope with economic uncertainties. from 2018. The report projected that China’s
infrastructural investment would grow by 8 percent
192
2.5 Construction and Real Estate
Key Take-Aways A report from the Economic and Strategic Planning
Department of the Bank of China (Hong Kong)
The construction industry in China is forecasted a rise of 7.3 percent in China’s aggregated
expected to record a compound annual investment in 2019, up 1.4 percentage points from
growth rate (CAGR) of 8.9 percent to reach 12,389.2 2018. Investment’s contribution to the growth of
billion yuan by 2023. China’s gross domestic product was also expected
to rise by 0.5 percentage points to 2.64 percentage
China’s domestic fixed-asset investment (FAI) points. In other words, about 40 percent of 2019’s
in highways and waterways registered steady economic growth was expected to be generated by
growth in the first eight months of 2019. Total investment. Infrastructure facilities will continue
FAI in highways and waterways reached 1.42 to take a large portion, but the emphasis will be
trillion yuan (about US$199.47 billion) during put on improving weak links and consolidating
January-August 2019, a year-on-year growth of 3.7 the less-developed areas. The State Council issued
percent. Specifically, investment in inland rivers a guideline in 2018 on beefing up the investment
expanded 0.6 percent to reach 36.83 billion yuan, in nine kinds of infrastructure facilities including
while that of highway construction recorded the railways, highways and waterways, airports, water
fastest growth rate of 3.8 percent to 1.35 trillion conservancy, energy and environmental protection
yuan during the period. as well as infrastructure conducive to agriculture
and rural development. Railway and highway
Twelve ministries, including the Ministry of construction will be mainly used to facilitate
Transport, have issued a four-year green travel the implementation of significant development
action plan (2019-22), which aims to promote strategies, including the Beijing-Tianjin-Hebei
green travel and improve the quality of public coordinated development, the Belt and Road
transportation services, as well as raise people’s Initiative, the Yangtze River Economic Belt, the
awareness of the benefits of green travel. Guangdong-Hong Kong-Macao Greater Bay Area
and the Xiongan New Area. Rural infrastructure
The country’s property market will continue to construction will be used to enhance agricultural
stabilize into 2020 as the central authorities further productivity and boost village development, while
stress establishing a long-term mechanism for the urban infrastructure construction will focus on
healthy development of the sector. government-subsidized housing, public transit and
drainage and waterlogging prevention systems. The
The market for real estate asset management Ministry of Transport, China Railways Corporation
has emerged on the mainland. Big property owners, and Civil Aviation Administration of China have
however, can’t find enough qualified managers. released infrastructural construction targets for
The competition for asset managers has intensified 2019 that included fixed-assets investment of
as foreign investors join the market. 1.8 trillion yuan in highways and waterways, 800
billion yuan in railway investment and another 85
Background billion yuan in airport construction. Specifically,
rural roads of 200,000 km long and waterways
Investment, an important engine of the Chinese of 400 km long will be built, while new rail lines
economy, is expected to grow faster, allowing of some 6,800 km long will be laid, up 45 percent
China to better cope with economic uncertainties. from 2018. The report projected that China’s
infrastructural investment would grow by 8 percent
192