China: Facts, Events, Opinions (39/2022/2)

chiny24.com 2 years ago

Economics (经济), Business (生意)

In the 10 months (January-October) perspective, China's economical situation is unchanged this year. Although there are no signs of fast improvement, there are no signs of a breakdown or recession. The overall economical and social situation seems stable. Consumption is inactive low, it fell by 0.5% y/y in October. And I don't think she'll be the driver of economical growth. So is services. The downward trend in real property investment is inactive being observed, and the hard situation of the housing sector is widening. But in October the sales of apartments increased by 16.6% (r/r). It is known that the government is preparing a central financial assistance package for developers. Further problems in this sector are a serious threat to the wellness of the full economy. comparatively advanced levels of unemployment (more than 5%), especially among young people aged 16 to 24 (nearly 18%, was almost 20%).

Meanwhile, abroad trade, as usual, keeps growth (about 10% in individual categories).

Production, investment and inflation are factors that enable the economy to proceed to develop. But there is no doubt: the Chinese economy faces many serious challenges, and their seriousness does not reduce either the uncertain geopolitical situation, or even the subsequent explosions of local coronavirus outbreaks, extinguished by subsequent lockdowns.

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Property (房地產)

In October this year, as all month, housing prices in 70 Chinese cities were analysed. And like this:

in the cities of the alleged first ellipse (the largest) prices of fresh housing increased by 2.6% y/y, those on the secondary marketplace by 1.3%;
in cities, the alleged second circular of fresh housing prices fell by 1.3% y/y, on the secondary marketplace by 3.2% y/y;
in the cities of the alleged 3rd circle, the price of fresh housing is reduced by 3.9% y/y and those second-hand by 4.7% y/y.

It's the largest inheritance in 7 years.

The State Statistical Office (国家统计局) examines changes in housing prices in 70 cities of China, with:

The first ellipse is China's 4 largest cities: Beijing, Shanghai, Canton and Shenzhen,
The second ellipse is 31 capitals of the province
The 3rd ellipse is 35 medium-sized cities specified as Suzhou or Ningbo.

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Science (科学), Education (教育)

US News & planet study published (another) ranking of the world's top universities. This is simply a list of 2,000 academic centres from 90 countries of the planet that are compared, among others, based on the number of publications in the technological press, the number of publications cited by another academic centres (number of citations), the importance of investigation results, the kind of investigation work and the evaluation of members of the global academic community.

The latest ranking (2022/2023) included 338 universities from China. This is more than American universities (280), which, however, dominate the top 100 rankings. The best-rated Chinese universities are:

TsingHua University (清华大) was ranked 23rd.
Beijing University (北京大学) on site 39,
Chinese University of HongKong (香港中文大学) at 53,
University of HongKong (香港大学) on site 55,
ShangHai JiaoTong University (上海交通大学) ranked 89th,
Zhejiang University (浙江大学) seat 93,
HongKong University of discipline & Technology (香港科技大学) on site 95
HongKong Polytechnic University (香港理工大学) finished 100th place (100th place).

All these colleges went higher than last year.

According to US News & planet Report, the best Polish university is the Jagiellonian University, which ranked 339.

Source:

https://www.usnews.com/education/best-global-universities/rankings

Finance – Banks – Capital (财政 – 银行 – 资本)

In Luxembourg, the second phase of the China – Central east Europe Fund (中国-中东欧基金), i.e. China-CEEC, led by ShiFu Capital Management Co., Ltd. (世福资本管理有限公司) and Industrial and Commercial Bank of China (中国工商银行).

Fund funds are mainly directed towards fresh energy projects.

China–CEEC was formed in October 2016. In more than 5 years, the fund has invested EUR 533 million (about PLN 2.42 billion) in various projects in this area of Europe.

On 6 November this year, the fund signed a debt agreement for EUR 50 million (about PLN 234.73 million) with China Zhongyuan abroad Engineering Co., Ltd. (中国中原对外工程有限公司), a subsidiary of China National atomic corp (中国核工业集团有限公司) for the implementation of a 51 MW solar power plant task located in Poland. All material components of this task will come from China.

Source:

https://www.thepaper.cn/newsDetail_forward_20677027

Beijing Stock Exchange – BSE (北京证券交易所), the 5th and youngest stock exchange in the country, plans to launch the first index from November 21st, which will reflect the overall situation in this market.

The index code is BSE-50 (北证50), 899050, and it will consist of (index value) results from 50 companies listed on this stock exchange. These companies presently account for 71% of the value of the full marketplace and represent various fields of industry, e.g. machine, pharmaceutical, energy, chemical, automotive, electronic, national defence, beverages.

The Beijing exchange opened on November 15, 2021. As of 4 November this year there were 121 companies with marketplace value of RMB 190 billion (about PLN 122.62 billion).

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Society (社会)

For the 24th time HunRun investigation (British advisory firm from Shanghai) publishes a list of the richest people in China. The latest ranking reflects the state on September 15, 2022.

In order to be in the latest ranking it was essential to own a property of a minimum value of RMB 5 billion (about PLN 3.214 billion). There are presently 1305 specified people in China (one 1000 3 100 and five). And that means a drop of 11% compared to last year's list. The wealthiest property in China shrunk at the same time by 18% y/y and its full value was 25.36 trillion RMB (about PLN 16.3 BILLION).

The decline in wealth of the wealthiest, in addition to the economical downturn (national and foreign), was greatly affected by declines in stock exchanges. Nasdaq and HangSeng indices dropped by 24% in relation to r/r, ShenZhen Component by 21% r/r, and ShangHai Composite by 12% /r. In addition, RMB lost to USD at a value of 8% y/y.

According to the data collected by HunRun in China there are presently 946 billionaires (and this in terms of USD), including 56 people whose assets are valued at more than USD 10 billion (about PLN 46.59 billion). Chinese billionaires peculiarly liked Beijing (148 people), Shenzhen (129), Shanghai (125), Hong Kong (90) and HangZhou (87).

The average age of Chinese billionaires is 58 years. That's 2 years more than in 2021.

What more can we learn from this year's ranking:

only 411 classifieds have enlarged their assets, 133 are fresh faces, 1 187 have decreased their assets and 293 listed in 2021 have fallen off the list;
for the second time in a row the richest Chinese is Zhong ShanShan (chin. 钟睒睒), whose property has grown by 17% y/y (called king of mineral water). Its NongFu Spring (chin. 农夫山泉) dominates the Chinese mineral water market;
Whereas the assets of the founder and president of ByteDance (TikTok) decreased by 28% during the year, he retained the second position on the list;
Ding Lei (chin. 丁磊), owner of the digital NetEase (网易), as well as pork producers, i.e. the matrimony of Qin YingLin (chin. 秦英林) and Qian Ying (chin. 钱瑛) returned to the first ten;
Still, although it will knock down, it falls in the ranking of Ma Yun (chin. 马云), i.e. Jack Ma, creator and ex-president of Alibaba Holding (chin. 阿里巴巴控股), now the group's largest shareholder. This is the effect imposed by the authorities controlling the marketplace in penalties, restrictions, restructuring and conversions, which have been going on for nearly 2 years, affecting the value of shares and the market;
for the first time in the top 10 there is no 1 among the developers;
The most fresh billionaires come from industrial production as well as real property (!!!), healthcare and medicine.
the number of billionaires coming from Hong Kong, Macau and Taiwan is decreasing;
the proportion of women among the wealthiest Chinese is not changed – 26.7% of the total;
Only 7% on the list are luck heirs.

The last on the list was Zong Jian (chin. 宗坚) of 51 years with his wife Zhao JingYan (chin. 赵静艳) of 47 years with assets worth RMB 5 billion (approx. PLN 3.24 billion) moving FeiWoTai Nanotechnology Co., Ltd. (菲沃泰纳米科技股份有限公司) of 1 of the largest producers of photovoltaic solar panels.

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Health (健康)

Despite the advanced number of infections in the country (more than 10,000 per day) The State wellness Commission (家卫生健康委员会) decided to loosen the restrictions associated with the Covid-19 epidemic. The representatives of the committee stress that steps towards “further optimisation” of epidemic prevention measures do not mean moving distant from a strict “zero covid” policy. The changes mainly consist in shortening mandatory quarantine for persons arriving from abroad or considered to be ‘close contacts’ with infected persons and reducing the number of mandatory PCR tests.

The “7+3” system, i.e. 7 days of quarantine in a designated hotel and 3 days of home wellness monitoring, will be replaced by “5+3”, i.e. 5 days of isolation and 3 days of home quarantine.

As recommended by the committee:

No longer will be sought and isolated persons who have had no direct contact with the infected person, but only those who contact the infected individual directly.
Neither will mass PCR tests be carried out, nor will closed settlements where the infected individual lived.
They will not be quarantined by the individual to whom the QR wellness app in the smartphone will turn colour to informing - yellow due to the fact that it was located where the infected individual was.
The rules for assessing the hazard of epidemic in individual areas have besides been amended. The “average risk” zones have been abandoned and the “high risk” areas will be able to regain “low risk” position after 5 days without fresh infections being detected.
Another change concerns the ban on self-closure of schools, the cessation of wellness care, businesses and factories, and another “exaggerated activities” by local authorities.
In addition, peculiar emphasis is placed on vaccination, especially among older people.
On the another hand, airlines will no longer be punished with a temporary ban on flights for bringing coronavirus-infected passengers to China. Before departure, passengers should have only 1 and not 2 negative test results valid for a maximum of 48 hours. To date, if 5 or more infections have been detected on board the aircraft after landing in China, the lines were suspended for 2 weeks.

These changes may seem fundamentally irrelevant to the beginning of the country, but any loosening of the sharpens is crucial here. It's a small thing, but it's good.

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Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China

Email: [email protected]

Editorial: Leszek B.

Email: [email protected]

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