Land Auction Proceeds See Strong Rebound
Government proceeds from selling residential land blocks surged 132% year on year in China's 300 largest cities in 1H 2013, with the growth in tier-1 cities up 354% and the growth in key tier-2 cities up 67%, Deutsche Bank says in its latest China Property Alert report. The report also lists 3 implications from the hectic sales: improved government financial positions; rebounding residential construction in the next 6-9 months and rising operating costs in tier-1 cities.
Credit Crunch Strains Auto Sales Growth
Sales of 15 major automakers rose 6.1% year on year in China in June, UBS says in its latest Morning Expresso Asia report. It expects total industry sales to grow 9% to 1.23 million units in 2013, weaker than its last estimate of 1.25 million units as the liquidity crunch disrupted inventory funding for some dealers. Retail pricing movements were better than expected in June, with 71% of models reporting declining prices, down from 74% in May.
Steelmakers Destock Faster
Steel mills appear to have destocked iron faster this year than last year, probably due to the recent tighter credit conditions, according to a Bank of America Merrill Lynch report. Based on MySteel estimates, iron ore inventories at steel mills are around 24 days versus 32 days at the same time last year. The report says spot iron ore and rebar prices have started to tick up since their lows during a hike in the Shanghai interbank offered rate in late June. The report also believes China has destocked other commodities, including copper.
Car Ownership More Wanted by Young Chinese
Over 50% of Chinese consumers born after 1980 thought owning and driving a car is necessary in daily life, according to an online survey by Tencent. The percentage is 8 percentage points higher than the overall 42% who held the same view. 55% of potential car buyers are born after 1980, and 30% are born in the 1970s, the survey shows.
Drug Price Survey May Not Cause Cuts
The recently announced survey of drug prices will more likely focus on those just added to the 2013 essential drug list and preferentially priced branded generics from multinationals, according to a Citi China HealthScope report. The National Development and Reform Commission said earlier this week that it will conduct another survey of ex-factory drug prices and the manufacturing costs of 60 Chinese and foreign companies in the coming months. The report suggests the survey may not necessarily imply or lead to price cuts, but likely reflects the NDRC's intention to build an optimized drug pricing regulation system and to provide a basis for future price cuts on overly priced drugs.
You are currently reading
total words in this article.
To continue reading this article, you must be a subscriber. Log in now..