Despite talk of a downturn, China still needs shoes as proven by a global sportswear-maker’s plan to open 3,000 new shops on the mainland. Also, as Shenzhen home prices continue to climb at double-digit rates, the head of one developer believes the city could soon rival Hong Kong in terms of housing costs. Read on for all these stories and more.
German sportswear maker Adidas AG will expand its retail network in China from the current 9,000 stores to 12,000 by 2020, a top executive said on Friday.
“With interest in sport in China continuing to gather pace, our newly unveiled ‘Creating the New 2020 Greater China’ strategy will further build upon our recent achievements and lead Adidas to become China’s best sports brand by 2020,” said Colin Currie, managing director of Adidas Group China.
Adidas recorded an 18 percent growth in sales in China last year, driven by the so-called performance and style products, according to its annual report. Read more>>
Fantasia Holdings Group (1777) chairman Pan Jun said home prices in Shenzhen may reach the level of Hong Kong in the future.
Pan said this is because the gross domestic product of the city will be twice that of Hong Kong in 2020, coupled with the fact that 60 percent of its population are young adults who have strong demand for housing.
The Shenzhen-based developer said net profit last year fell 3.6 percent to HK$1.22 billion from 2014 due to rising costs, but contract sales reached 11.27 billion yuan (HK$13.4 billion), 2.47 percent higher than its annual target. The stock rose 5.81 percent to 91 HK cents after the results came out. Read more>>
Beijing’s monetary policies have encouraged investors to pour money into real estate, inflating prices in cities such as Beijing, Shanghai and Shenzhen and increasing the risk that bubbles could form, central bank policy adviser Bai Chongen said.
At the same time, smaller property markets were struggling with excess inventory, making it difficult to craft a unified policy response and requiring careful coordination with fiscal measures, he said on Wednesday on the sidelines of a joint symposium hosted by the People’s Bank of China and the Federal Reserve Bank of New York in Hangzhou. Read more>>
A report on Shenzhen’s frenzied housing market by the government-run news agency Xinhua on Wednesday warned of increasing leverage risks and called for further tightening measures to rein in the market.
Shenzhen has seen home prices skyrocket 72 per cent in the past 12 months, to a record 48,095 yuan per square metre in February, according to Shenzhen government data – more expensive than in Shanghai or Beijing. Read more>>
Chinese mainland financial institutions have expanded their physical footprint in Hong Kong’s prime business district at their fastest pace in five years, driving up rents and underscoring how China’s policies are reshaping the city.
While international firms are consolidating and relocating offices to save money, China is pushing on with plans to draw Hong Kong into a Pearl River Delta mega-economy — and mainland financial institutions are leading the way. Read more>>
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