More anecdotal evidence of China’s slowdown

NYT:

Construction sites across Guangzhou used to be floodlit, so that work could continue through the night on the forests of new residential and office towers reaching toward the stars. But now, during a nationwide real estate downturn, builders are not starting projects or scrambling to finish ones already under way, so there is little need for night-work illumination…Two Guangzhou real estate brokers said that prices here had dropped by up to 20 percent over the last year. The nationwide slowdown in real estate cost thousands of agents their jobs and led to the closing of hundreds of brokerage offices. “There is no buying sentiment in the market right now,” said a broker here who gave only his last name, Leung, because he feared retaliation for publicly questioning government policies. The government has ordered a sharp increase in the construction of low-income housing. But in Guangzhou and elsewhere in China, there is considerable cynicism about whether political connections will be needed to buy such apartments

These problems should hardly be a surprise, since the country made $1.7 trillion in real estate loans in just two years to offset slower export growth.

2 Responses to “More anecdotal evidence of China’s slowdown”

  1. feeblemind Says:

    Is China’s Economy Crumbling?

    “Electricity consumption, the best indicator of Chinese economic activity, declined 7.5 percent last month. China’s aggregate financing, perhaps the second best signal, collapsed, falling by almost half. New lending in January was the lowest in five years.”

    http://www.worldaffairsjournal.org/blog/gordon-g-chang/chinas-economy-crumbling

  2. feeblemind Says:

    Also this from the UK Telegraph:

    “Around 26 million migrant workers have returned to the Chinese countryside after failing to find employment in China’s cities, a leading rural affairs advisor said on Monday, as he warned that the widespread unemployment could threaten the country’s social stability.

    The figures were announced one day after Beijing warned of “possibly the toughest year” since the turn of the century, calling for development of agriculture and rural areas to offset the economic fallout as China’s urban exporters are hit by the global slowdown.”

    http://www.telegraph.co.uk/news/worldnews/asia/china/4438965/Economic-downturn-leaves-26-million-unemployed-in-China.html

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