Signs of Rebound in Central Gyeonggi...Real Estate Performance Rises and Manufacturing Recovers

The Chinese economy, which had been struggling with sluggish momentum, is gradually showing signs of recovery. As real estate transactions, considered the biggest economic risk, increased, the sales of related companies doubled, and the manufacturing sector entered an expansion phase after six months. Local experts have diagnosed that the Chinese economy already hit bottom in the third quarter of last year.

According to China Real Estate Information Corporation (CRIC), one of China's largest real estate research firms, the sales of the top 100 real estate companies last month reached 358.32 billion yuan (approximately 66.53 trillion KRW), a 92.8% increase compared to the previous month. The Chinese E-Han think tank reported that among the top 50 real estate companies by sales, 43 saw their March sales increase compared to the previous month, with most increases exceeding 50%. Among them, Zhonghai, Lvcheng, Huarun, Zhaoxiangshekou, Jianfa, Weshou, and Huafa showed sales growth rates of over 100%.

[Image source= Xinhua News Agency]

원본보기 아이콘

The top-selling company was Zhonghai Real Estate, which posted sales of 41.21 billion yuan in March alone. The Chinese Daily Economic News reported that the company's Shanghai Xintiandi project received a positive response at the end of last month, achieving sales of 19.65 billion yuan on the day of sale, setting a nationwide record for the highest single commercial housing sales.

However, the situation has not yet returned to normal. Compared to the previous year, Zhonghai's sales decreased by 4%, and among the 50 companies surveyed by the E-Han think tank, only three companies saw sales increase compared to last year. On a cumulative basis from January to March, the sales of the top 100 companies decreased by 47.5% compared to the previous year.

Within China, expectations for recovery are growing due to positive economic indicators continuing since the beginning of the year. The Purchasing Managers' Index (PMI) for manufacturing in March, released by the National Bureau of Statistics of China the day before, rose 1.7 points from the previous month to 50.8. The PMI, based on surveys of purchasing managers in companies, is an indicator showing economic trends in the relevant sector. A value above 50 indicates expansion, while below 50 indicates contraction.

The manufacturing PMI exceeding the baseline and returning to expansion territory is the first time in six months since September last year (50.2). The non-manufacturing PMI announced on the same day also recorded 53.0, surpassing both the previous month’s figure (51.4) and the forecast (51.3). Numerically, this is the highest level in nine months since June last year (53.2).

There is also a diagnosis that the Chinese economy has already bottomed out and is in a rebound phase. The China Macroeconomic Forum (CMF) at Renmin University of China stated in its quarterly (Q1) forum, "The economic bottom appeared in the third quarter of last year," emphasizing that "prices and consumption are recovering, and exports increased by 7.1% year-on-year in January and February, eliminating the long-term negative trend." The forum report stressed, "Focusing on recent short-term changes, the economy this year will be stronger than last year."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.