China's Economic Overview and Challenges slide image

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 5
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