China’s Two Sessions: GDP Growth and ImplicationsKey Implications of GDP Growth Target in 2022 Despite China’s strong rebound in 2021 at 8.1% from 2020 at 2.35%, the target GDP growth for 2022 is set at a cautiously ambitious 5.5% as announced in China’s annual “Two Sessions” legislative meetings. In translation, this growth will encompass more than 11 million new urban jobs, a CPI increase of 3%, more than 650 million metric tons of grain output, 2.8% budget deficit-to-GDP ratio, and RMB 3.65 trillion domestic investment target. These plans are critical to China’s economic and social developments in 2022, as the …
Three Red Lines Policy – Regulating China’s Real Estate Developers
Three Red Lines Policy – Regulating China’s Real Estate DevelopersEven before the recent turbulences around Evergrande and other property developers, the Chinese government has already been worried about a potentially overheating real estate market for several years now. In this Executive Briefing, we are providing some background on the issue and introduce one of the most impactful policy measures that has been introduced so far to reduce risks: the Three Red Lines Policy.Why was the Three Red Lines Policy implemented? The development of the Chinese real estate market in recent years (marked by rising housing prices and the growing debt …