Emerging drivers, enduring risks
China is pushing the development of new growth drivers, including electric vehicles and clean energy, but it faces challenges in the road ahead.
The Chinese government has encouraged the development and adoption of artificial intelligence in the past few years to enhance productivity and create added value for the economy.
Higher value-added products and services produced by Chinese companies are making a greater contribution to exports as the country moves up the global value chain.
The EV industry will become a major contributor to China’s GDP by the end of the decade. But rising investments and costs for automakers come at a time of tougher market competition.
China's short-term macro slowdown is challenging its economic restructuring effort. Overreliance on state support for new growth sectors risks leading to overcapacity or resource misallocation.
It will take time and effort for sectors like tech and EVs to drive China’s GDP growth, and geopolitics is a risk. But emerging markets supplying relevant goods and services to China stand to benefit.
Read more on global construction and homebuilding companies, including Chinese property developers.
Read more on China’s local government financing vehicles, also known as LGFVs, that primarily finance, invest in and operate public infrastructure and social welfare projects on behalf of regional and local governments.
Lower product margins and declining investment yields continue dragging on the profitability of Chinese life insurers.
Developers may be able to obtain the necessary funding to complete and deliver their qualified unfinished projects. But, a market recovery remains unlikely in the near term amid weak housing demand.
Some measures in recent months reflect the government's concerns about the economy and debt. Cyclical and structural pressures will continue to put downward pressure on growth.
Cyclical disinflationary pressures will likely dissipate as energy and food prices steady. But, if unmanaged, structural economic issues could cause longer-term disinflation or deflation.
Property market stress and moderated infrastructure investment will constrain domestic new order growth for rated companies. While overseas new orders will rise, contribution to total revenue will remain small.
The economic slowdown and stressed property sector are putting pressure on budgets, while central government support is becoming more selective.
In this webinar, we’ll discuss the progress of and challenges facing China’s NEV industry, the impact on automakers, the investments needed to strengthen the infrastructure for NEVs and the implications for China’s auto loan ABS market.
我们在此次网络研讨会上将探讨中国新能源汽车行业的发展及其面临的挑战、汽车生产商受到的影响、加强新能源汽车基础设施所需的投资,以及对中国汽车贷款ABS市场的影响。
Join our analysts as they discuss the impact of credit trends on Asia-Pacific (APAC) real estate investment trusts (REITs) and real estate operating companies (REOCs).
The heterogenous nature of the Asia-Pacific region will remain on show through 2024. Asia’s largest economies, China and Japan will continue struggling through the first half of 2024. China will be weighed down by underperforming domestic demand, with the correcting property market a particular drag.