Comments on: China’s Real Estate Pillar.. http://www.allroadsleadtochina.com/2007/04/27/chinas-real-estate-pillar/ Fri, 12 Mar 2010 06:41:16 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: rbrubaker http://www.allroadsleadtochina.com/2007/04/27/chinas-real-estate-pillar/comment-page-1/#comment-312 rbrubaker Sun, 29 Apr 2007 06:03:13 +0000 http://www.allroadsleadtochina.com/?p=317#comment-312 Hi John, I do not see that there will be any decline in building in the near turn, and hopefully the U.S. market will have enough time to recover. What I am seeing is that deal are getting less in terms of volume, but the deal are getting much larger. In addition, the trend in the 2nd tier is to keep building in the middle ground area (insulate largely from the recnt changes). With regard to the chemical issue, there is a lot of pressure right now. several of the parks we spoke to told us they were full, others said that EPA documents would be reviewed in their area and in Beijing. For some cities, they are setting up chemical parks that are seperate, and are somewhat isolated from the rest of town. TEDA is a great case of that. For either case, different locations offer different flexibilities, but it is best at this point to really stick to the regulations as what is said one day may not be implemented the next. By sticking to the current trends, and working within well tested areas, investments that are given approval <em> will be</em> approved.. even if the area comes under investigation. Have a good weekend Rich Hi John,

I do not see that there will be any decline in building in the near turn, and hopefully the U.S. market will have enough time to recover.

What I am seeing is that deal are getting less in terms of volume, but the deal are getting much larger. In addition, the trend in the 2nd tier is to keep building in the middle ground area (insulate largely from the recnt changes).

With regard to the chemical issue, there is a lot of pressure right now. several of the parks we spoke to told us they were full, others said that EPA documents would be reviewed in their area and in Beijing. For some cities, they are setting up chemical parks that are seperate, and are somewhat isolated from the rest of town. TEDA is a great case of that.

For either case, different locations offer different flexibilities, but it is best at this point to really stick to the regulations as what is said one day may not be implemented the next. By sticking to the current trends, and working within well tested areas, investments that are given approval will be approved.. even if the area comes under investigation.

Have a good weekend
Rich

]]> By: john richardson http://www.allroadsleadtochina.com/2007/04/27/chinas-real-estate-pillar/comment-page-1/#comment-311 john richardson Sun, 29 Apr 2007 02:06:55 +0000 http://www.allroadsleadtochina.com/?p=317#comment-311 If the real estate sector is subject to these measures, the knock-on effect for the construction industry could be quite alarming, and for the sector I cover - polyvinyl chloride. The main use for PVC is in construction materials. See my blog for more on the Asian chemicals and related industries - http://www.icis.com/blogs/asian-chemical-connections/ A sharp decline in costruction could leave to greater volumes of PVC being exported from China. The global market is already struggling to absorb a big increase in shipments of low cost PVC from China. As seems to be the case in so many industries in China, overcapacity is being built up in PVC on the low cost of capital. On the comment about chemical approvals being harder to obtain, this interesting. A lot of noise has been made about the environment. This is evidence that there might be some substance behind the noise from SEPA. As always, though, what about local implementation, given that industrial production growth is still the tried and tested way of delivering strong regional GDP growth? If the real estate sector is subject to these measures, the knock-on effect for the construction industry could be quite alarming, and for the sector I cover – polyvinyl chloride. The main use for PVC is in construction materials. See my blog for more on the Asian chemicals and related industries – http://www.icis.com/blogs/asian-chemical-connections/
A sharp decline in costruction could leave to greater volumes of PVC being exported from China.
The global market is already struggling to absorb a big increase in shipments of low cost PVC from China. As seems to be the case in so many industries in China, overcapacity is being built up in PVC on the low cost of capital.
On the comment about chemical approvals being harder to obtain, this interesting. A lot of noise has been made about the environment. This is evidence that there might be some substance behind the noise from SEPA. As always, though, what about local implementation, given that industrial production growth is still the tried and tested way of delivering strong regional GDP growth?

]]> By: rbrubaker http://www.allroadsleadtochina.com/2007/04/27/chinas-real-estate-pillar/comment-page-1/#comment-310 rbrubaker Sat, 28 Apr 2007 08:58:31 +0000 http://www.allroadsleadtochina.com/?p=317#comment-310 In another article on <a href="http://english.eastday.com/.html" rel="nofollow"> East Day</a> it is being reported that <a href="http://english.eastday.com/eastday/englishedition/nation/userobject1ai2799809.html" rel="nofollow"> 12 industrial projects were denied approval recently on a local level</a>, and that a total of 43 have been rejected by SEPA. Having recently finished a site selection project for a chemical company, this article is timely as we recently conducted interviews with 5 chemical parks... and it was obvious that the days of old were gone, and projects were receiving a higher level of scrutiny. In another article on
East Day it is being reported that 12 industrial projects were denied approval recently on a local level, and that a total of 43 have been rejected by SEPA.

Having recently finished a site selection project for a chemical company, this article is timely as we recently conducted interviews with 5 chemical parks… and it was obvious that the days of old were gone, and projects were receiving a higher level of scrutiny.

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