One senior analyst says the guide to what will happen financially in the country rests with the real estate developers.
Jing Ulrich, the chairman of China equities for JP Morgan, said at a recent seminar at the Cheung Kong Graduate School of Business in Beijing, ‘A toy factory can lay off 4,000 or 5,000 workers at most. But even a small developer can lay off 50,000 workers.’
She said that construction companies throw workers at a project. At one point before construction companies finished erecting Terminal 3 at Beijing’s international airport, there were 50,000 workers just at that one site.
Even small developers have multiple projects ongoing at any given time.
According to an article in the China Daily, the property sector employs 77 million people.
Jing Ulrich noted that 50% of China’s steel production goes to construction. Jing Ulrich says she thinks property sales have hit bottom and are picking up.
Source: China Rises