Shanghai’s Real Estate Market Remain Unfazed By Global Trends
The economy of China is sharing a slowdown felt worldwide, but Shanghai, China's financial hub, is feeling the opposite.
According to SCMP, investors have become drawn to more familiar surroundings, and Shanghai is the perfect place for a "glut" of decentralized stock. This is good news in the face of weakening growth and the stall in talks between Beijing and Washington.
The first quarter of 2019 showed how transactions in China surged to an all-time high of $17 billion for the quarter. It was good enough to start a 14% rise in investment activity in the Asia-Pacific region, even as sales are declining in Europe and the Americas. Data from the report came from property adviser Jones Lang LaSalle.
Shanghai, meanwhile, did well enough for itself, accounting for 37% of commercial property deals locally. It has even become the world's second most actively traded commercial real estate market, second only to Tokyo and also one of the biggest recipients of cross-border investment after London, the report further revealed.
This is good news if the reports that came in Monday were any indication. Asian shares mostly started lower, with losses on Wall Street amid the debut of Shanghai's new trade market. Market Watch reported that 25 companies listed on the Shanghai STAR Market more than expanded their stock, with one-Anji Microelectronics Technology Co., Ltd.-showing a 415% advance.
The Nikkei was down 0.2% that time and the Shanghai Composite index fell by about 1.3%. Australia's S&P/ASX 200 went down 0.1% as South Korea's Kospi staged on the average. Hong Kong's Hang Seng fell by about 1.3% while Taiwan's Taiex defied the odds, instead of adding 0.6%, along with Singapore's STI, which also added the same percentage.
The STAR Market have mostly 25 companies involved in information technology and other fields. It was patterned after the US NASDAQ and gives smaller local investors the opportunity to put shares toward tech industries, which-until the formation of the market-relied on Wall Street to sell shares.
Shanghai and Beijing have kept up to have their share of commercial property transactions go up by 71^ during the first half of the year. They have investors to thank for that, which favored cities that they are most familiar with. It seems that with the rise of the STAR Market-Shanghai is fast becoming the place to be among China's many rising cities and tech hubs.