Macro Dashboard - Sector Analysis

CEIC Gallery/World Economy/Sector Analysis - January 25, 2016 (Data from CEIC Gallery which is a collection of macroecomonic templates to cover the world economy, emerging economies, thematic analysis and hot topics) Sector analysis allows users to identify investment opportunities across sectors and industries. In this section, we selected a couple of fast growing sectors (ASEAN Real Estate and China Automobile), as well as few crucial industries in China (China Energy, China Construction and China Property). ASEAN Real Estate - Sectors The establishment of an integrated ASEAN economy leads to a boost in ASEAN’s commercial real estate market across the region. This is due to the fact that the business environment within ASEAN will be much more vibrant in upcoming 2016. The rise of demand will lead to the opportunity for growth in the real estate sector. However, some limitations that ASEAN need to overcome were raised in the report from CBRE research such as an ill-managed institutional supply pipeline and the lack of complementary real estate investment policies to promote the liberalization of investment policies and free flow of capital. Despite these limitations, market observers remain optimistic about the real estate capital inflows, going by positive trends in some of ASEAN member states like Singapore and Malaysia in the last decade. China Automobile - Sectors Benefited from the tax cut on vehicle purchases announced in late September 2015, China’s automobile industry showed improvement in October 2015 after experiencing a difficult time during 2015H1. Sales volume increased 47.8% to 2.2 million in October 2015 from 1.5 million in July 2015, compared to a 22.8% increase for the same period in 2014. China Energy - Sectors China is the world's largest energy consumer. The charts below demonstrate the energy production and consumption breakdown in China over the past 5 years. China Construction - Sectors In China, decline in the growth of construction investment is one of the major reasons for the country's economic slowdown. Fixed asset investment (FAI) on new construction projects signals the slowing construction investment environment will continue, which is now described as “the new normal”. The gross output value of construction reached its recent low in the Sept 2015 quarter. Perhaps, "One Belt One Road" provides an opportunity for Chinese construction companies to seek new orders. Property Bubble in China - Sectors / Hot Topics The real estate climate index suggests that there is improvement in real estate activities in the recent months. The average residential property price growth rate also shows signs of rebound in property market. In fact, the price increase is mainly from the first-tier cities and partially from the second-tier cities. The residential property prices in other city categories are still declining. Slowdown in real estate investment and construction activities growth in the past year has decreased house inventory. On the other hand, urbanization in China rises the house demand in fast-growing cities. Rising demands and slower supply growth have lowered China's property bubble risk and result in higher average property prices. With the property price correction, the PBoC survey shows that people expected property prices to rise and plans to buy houses over the short-term have increased, while the proportion of people who are unable to accept to the high housing prices has been decreased. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
10th February 2016 Macro Dashboard - Sector Analysis