According to National Statistical Bureau, from Jan to Sep, the contribution of real estate to GDP is 8%. However,according to CICC research team, in third quarter, property related service accounted for 3.8% of real GDP growth, and 12.3% to norminal GDP. However, this figure is calculated only by construction GDP. It does not include the property related industries. While construction related raw material industry accounted for 5%, furniture and house decoration was 5%, and property finance is 2%.
Former World Bank Chinese Director Yuchuan Huang said he thought the final way of measuring the success of AIIB is not thought AIIB itself, but through other organizations’ response. Whether current organizations have changed their policy and become more efficient in leanding and financing is a main measurement for AIIB.
KPMG has just released a report on the Global Fintech trends and highlights leading the most innovative companies. China has now 4 out of the top 5 companies and 8 out of the top 50 list.
Chinese political Bureau of the Central Committee has confirmed that central of monetary policy will shift from a stable growth to depress bubbles. Increase in real estate prices is threatening financial market. Recent policy will focus on depress real estate and lower the financial leverage.
Shanghai Stock Exchange on 28th Oct published policy on strengthening the credit contro over supply-excessive industry, including real estate, iron and coal industries. This action will restrict debt release of companies in those industries and underwritters have to examine clearly before they help issue debt of companies.
Over the first three quarters in 2016, Chinese economy continuously increase at the rate of 6.7%. Head of Chinese economy of State Council Liqun Zhang said when determining whether economy has reached bottom, a very important indicator is investment. Infrastructure increased 19.4% over the 9 months and this investment can stablize total investments.
Because of RMB depreciation, cash is flowing into HongKong real estate industry. A new property for upper class buyers sold 40% of its houses to mainland investors. Most of them are willing to rent and wait for increase in price.