The idea is that for the twelfth 5-year plan, China would make concerted efforts to improve its Consumption-to-GDP ratio, and that involves a lot of structural changes.- Helen Zhu
A View from Asia: China
Helen Zhu, our chief China equity strategist, discusses China's economy and social housing, and provides insight on investing preferences of Chinese investors.
Social housing is clearly a key new focal point in the Chinese government's social welfare and investment agenda. Slow build progress and low completion rates in the past were due to insufficient pressure from the top, and lack of local government economic incentive.
We expect a noticeable pick-up in pace as the central government escalates political pressure and introduces a stream of supportive policies to jump start investment.
Social housing beneficiaries include the usual upstream suppliers including various types of raw materials/commodities, construction services and machinery.