China's Economic Overview and Challenges
Economy experiencing further pressure of tight regulations
Property market downturn has dampened
private consumption and investment
China's Property Price Index and Real Estate Investment
Newly built commercial residential
building index (2015 = 100)
116
114
112
110
108
106
104
102
100
2019
2020
2021
Property Price
(LHS)
Real Estate Investment
(RHS)
Year-on-year change
Regulations on private tuition & internet
services impacting younger workers in particular
China's Urban Surveyed Unemployment Rate
18
16
14
12
50%
40%
30%
20%
10%
10
0%
-10%
-20%
2
-30%
0
2018
Retail sales
(RHS)
2019
2020
2021
-Nationwide
Workers aged 16-24
14.3
5.1
Sources: National Bureau of Statistics; BEA Economic Research, data as of 17/1/2022
Property market sentiment has turned bleak, which is
affecting investment and private consumption as well as
other related sectors such as property services, including
construction materials like cement, steel, and coking coal.
•
Source: National Bureau of Statistics, data as of 17/1/2022
Workers are being laid off from jobs in internet services,
education, and the property sector, which is also dimming
employment prospects for college graduates.
Didi Global and Bytedance are said to have laid off
thousands of employees last year. New Oriental has said
that it will cut 40,000 staff by end-2021.
BEA東亞銀行
5View entire presentation