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China is the world's largest producer and consumer of agricultural products. In 2010, 38.1% of the nation's 780 million labor force was employed in the agricultural sector, and output of the primary industry grew 4.3% to ¥4.05 trillion, accounting for 10.17% of gross domestic product.
In 2009:
- Grain crops and oil-bearing crops made up 68.7% and 8.61% respectively of total sown area;
- Irrigation area totaled 59.26 million hectares;
- Use of fertilizers totaled 54.04 million tons;
- Agricultural use of electricity totaled 610.44 kW hours;
- Rice output was 195.1 million tons;
- Wheat output was 115.12 million tons;
- Corn output was 163.97 million tons;
- Cotton output was 6.38 million tons;
- Tobacco output was 3.07 million tons;
- Tea output was 1.36 million tons;
- Fruit output was 203.96 million tons;
- Meat output was 76.5 million tons (48.91 million tons of pork);
- Milk output was 35.19 million tons;
- Seafood output was 26.82 million tons.
Severe droughts over recent year, shrinking and polluted arable land and a shortage of potash, a key ingredient for fertilizers, pose a challenge to China's future agricultural development.
The top five mainland-listed agriculture companies by market value are
- Heilongjiang Agricultural Co (SHA: 600598), based in Harbin, Heilongjiang
- Dalian Zhangzidao Fishery Group Co (SHE: 002069), based in Dalian, Liaoning
- Sichuan New Hope Agribusiness Co (SHE: 000876), based in Chengdu, Sichuan
- Fujian Sunner Development Co (SHE: 002299), based Nanping, Fujian
- Beijing Dabeinong Technology Group Co (SHE: 002385), based in Beijing
China's first modern automaker was founded in 1956 in the northeastern province of Jilin, and first Sino-foreign joint venture was established in 1984 by SAIC Group and Volkswagen AG. The industry has seen rapid expansion since annual output exceeded one million units in 2002.
China overtook the US for the first time as the world's largest auto market by sales volume in 2010, during which:
- Overall vehicles sales were up 32.37% to 18.06 million;
- Passenger cars sales were 33.17% to 13.76 million;
- Sales of cars with engine smaller than 1.6L were up 27.98% to 6.63 million;
- Sales of cars with engine 1.6-2.0L were up 29.77% to 2.15 million;
- Sales of cars with engine 2.5-3.0L were up 39.72% to 66,700;
- Commercial vehicle sales were up 29.9% to 4.3 million;
- SUV sales were up 101.27% to 1.33 million;
- MPV sales were up 78.92% to 445,400;
- Minivans sales were up 27.77% to 2.49 million;
- Trucks sales were up 30.47% to 3.86 million;
- Heavy-duty vehicles were up 59.93% to 1.02 million;
- Buses & coaches sales were up 25.14% to 443,100.
The major Sino-foreign joint ventures are
- SAIC (Shanghai) - Volkswagen (Germany)
- SAIC (Shanghai) - General Motors (Germany)
- FAW Group (Changchun, Jilin) - Volkswagen (Germany)
- Dongfeng Motor Corp (Wuhan, Hubei) - Citroen (France)
- Beijing Automotive Group (Beijing) - Hyundai (South Korea)
Air pollution and traffic congestion are major obstacles for growth in the traditional auto industry in China. Auto sales growth slowed significantly to 3.4% in the first half of 2011 from a year earlier. The government has introduced a string of incentives to develop renewable energy-powered or electric vehicles but the efforts have been stymied by technological bottlenecks.
The top five mainland-listed automakers by market value are
- SAIC Motor Corp (SHA: 600104), based in Shanghai
- Huayu Automotive System Co (SHA: 600741), based in Shanghai
- Chongqing Changan Automobile Co (SHE: 000625), based in Chongqing
- FAW Car Co (SHE: 000800), based in Changchun, Jilin
- Jiangling Motors Corp (SHE: 000550), based in Nanchang, Jiangxi
China has become one of the world's most visited tourism markets thanks to its booming economy, geographical variations and large amount of historic sites.
In 2010:
- The tourism industry's revenue expanded 21.7% to ¥1.57 trillion, where revenue from mainland tourists accounted for 81% of the total;
- The number of domestic tourists rose 10.6% to 2.1 billion people, generating ¥1.26 trillion in revenues, up 23.5% from 2009;
- The number of international tourists rose 5.8% to 133.76 million people, generating $45.81 billion in revenues ($343 per person), up 15.5% from 2009;
- The number of tourists visiting overseas rose 20.4% to 57.39 million, and their spending overseas rose 14.3% to $48 billion ($836 per person);
- The top five regions by tourism revenue were Jiangsu province (¥468.5 billion), Guangdong province (¥380.41 billion), Shanghai (¥340 billion), Zhejiang province (¥331.3 billion) and Shandong province (¥305.88 billion).
Among the goals set out in the five-year plan for the tourism sector by 2015:
- The tourism industry's revenue will total ¥2.3 trillion;
- The number of domestic tourists will total 3.3 billion people;
- The number of overnight international tourists will total 66.3 million people;
- 15.25 million people will be directly employed in the tourism industry.
The government has realized economic significance of the tourism industry and introduced a spate of policies to back its growth. But the tourism industry is facing haphazard development that causes damage to the original attractions and to the entire industry in the long run.
China has four mainland-listed tourism companies:
- China Southern Airlines Ltd (NYSE: ZNH, SHA: 600029, HKG: 1055), based in Guangzhou, Guangdong
- China Eastern Airlines Corp (NYSE: CEA, SHA: 600115, HKG: 0670), based in Shanghai
- Air China Ltd (SHA: 601111, HKG: 0753), based in Beijing
- Hainan Airlines Co (SHA: 600221), based in Haikou, Hainan
China has become one of the world's most visited tourism markets thanks to its booming economy, geographical variations and large amount of historic sites.
In 2010:
- The tourism industry's revenue expanded 21.7% to ¥1.57 trillion, where revenue from mainland tourists accounted for 81% of the total;
- The number of domestic tourists rose 10.6% to 2.1 billion people, generating ¥1.26 trillion in revenues, up 23.5% from 2009;
- The number of international tourists rose 5.8% to 133.76 million people, generating $45.81 billion in revenues ($343 per person), up 15.5% from 2009;
- The number of tourists visiting overseas rose 20.4% to 57.39 million, and their spending overseas rose 14.3% to $48 billion ($836 per person);
- The top five regions by tourism revenue were Jiangsu province (¥468.5 billion), Guangdong province (¥380.41 billion), Shanghai (¥340 billion), Zhejiang province (¥331.3 billion) and Shandong province (¥305.88 billion).
Among the goals set out in the five-year plan for the tourism sector by 2015:
- The tourism industry's revenue will total ¥2.3 trillion;
- The number of domestic tourists will total 3.3 billion people;
- The number of overnight international tourists will total 66.3 million people;
- 15.25 million people will be directly employed in the tourism industry.
The government has realized economic significance of the tourism industry and introduced a spate of policies to back its growth. But the tourism industry is facing haphazard development that causes damage to the original attractions and to the entire industry in the long run.
The top five mainland-listed tourism companies by market value are
- China International Travel Service Corp (SHA: 601888), based in Beijing
- Hangzhou Songcheng Tourism Development Co (SHE: 300144), based in Hangzhou, Zhejiang
- Hangzhou Songcheng Tourism Development Co (SHA: 600054), based in Huangshan, Anhui
- China CYTS Tours Holding Co (SHA: 600138), based in Beijing
- Emei Shan Tourism Co (SHE: 000888), based in Emei Shan, Sichuan
China's banking industry, regulated by the People's Bank of China (the central bank) and the China Banking Regulatory Commission, lent ¥7.95 trillion in Renminbi-denominated loans in 2010, up 19.9% from and 11.8 percentage points slower than a year earlier as the government tightened monetary policy to keep looming inflation and asset bubbles in check. Total loans made in 2010, including foreign currency-denominated loans, added up to ¥8.36 trillion equivalent, taking total outstanding loans to ¥50.92 billion by the end of 2010.
Deposits made in 2010 totaled ¥12.14 trillion equivalent, including ¥12.05 trillion Renminbi-denominated deposits, taking total deposit balance to ¥73.34 trillion by the end of 2010.
The industry's profit rose 34.5% to ¥899.1 billion. The top five state-owned banks' profit accounted for 60% of total earnings whereas the 151 city-level lenders' profit accounted for 8.5% of total earnings.
China's bankcard clearance system processed 25.76 billion transactions worth ¥246.8 trillion in 2010, up 30.8% and 48.7% respectively from the year before. China had 2.19 billion debit cards and 230 million credit cards in circulation by the end of 2010.
The value of interbank transactions rose 31.1% to ¥179.5 trillion in 2010, or ¥718 billion a day.
China's banks had ¥95.3 trillion in total assets and ¥364.6 billion in non-performing loans (NPL ratio 1.15%) by the end of 2010.
The top five mainland-listed banks by market value are
- Industrial & Commercial Bank of China Ltd (SHA: 601398, HKG: 1398), based in Beijing
- China Construction Bank Corp (SHA: 601939, HKG: 0939), based in Beijing
- Bank of China Ltd (SHA: 601988, HKG: 3988), based in Shanghai
- Agricultural Bank of China Co (SHA: 601288, HKG: 1288), based in Beijing
- Bank of Communications Co (SHA: 601328, HKG: 3328), based in Shanghai
China's insurance industry, regulated by the China Insurance Regulatory Commission, recorded ¥1.43 trillion in premium incomes in 2011, down 1.3% from the year before. Life insurance premium down 8.6% to ¥972.1 billion, and property insurance premium was up 18.5% to ¥461.8 billion.
In 2010, the industry compensated ¥313.7 billion in insurance claims, profited ¥60.7 billion, and had ¥5 trillion in total assets by the end of 2010.
In 2010, the top three insurers by life insurance premium were
- China Life Insurance posted ¥333.04 billion in life insurance premium, accounting for 31.72% of total life insurance premiums, down from 36.23% in 2009;
- Ping An Insurance posted ¥159.06 billion in life insurance, accounting for 15.15% of total life insurance premiums, down from 16.24% in 2009;
- NCI posted ¥93.64 billion in life insurance premium, accounting for 8.92% of total life insurance premiums, up from 8.2% in 2009.
In 2010, AIA continued to be the largest foreign insurer by premium income out of 28 foreign life insurers despite a 0.18-percentage-point decline in Chinese market share. It posted ¥8.47 billion in life insurance premium, accounting for 0.81% of total life insurance premiums, down from 0.99% in 2009.
In 2010, the top three insurers by property insurance premium were
- PICC posted ¥153.93 billion in property insurance premium, accounting for 38.23% of total property insurance premiums, down from 39.92% in 2009;
- Ping An Insurance posted ¥62.11 billion in property insurance, accounting for 15.43% of total property insurance premiums, up from 12.86% in 2009;
- CPIC posted ¥51.53 billion in property insurance premium, accounting for 12.8% of total property insurance premiums, up from 11.44% in 2009.
In 2010, Chartis continued to be the largest property insurer by property income out of 19 foreign property insurers despite a 0.017-percentage-point decline in Chinese market share. It posted ¥1.02 billion in property insurance premium, accounting for 0.25% of total property insurance premiums, down from 0.27% in 2009.
China's insurance industry is fledging compared to that in developed economies. For instance, very few people in rural China are insured; commercial medical insurance and dental insurance are even rarely seen in the largest Chinese cities. However, the nation's 1.4 billion people potentially back rapid growth of the insurance industry.
China has three mainland-listed insurers:
- China Life Insurance Co (NYSE: LFC, SHA: 601628, HKG: 2628), based in Beijing
- Ping An Insurance Group Co of China (SHA: 601318, HKG: 2318), based in Shenzhen, Guangdong
- CPIC (SHA: 601601, HKG: 2601), based in Shanghai
The Chinese manufacturing industry is fourth among the manufacturing industries of the world, behind the USA, Japan and Germany. It is a highly important industrial sector in China, producing 44.1% of GDP in 2004 and accounting for 11.3% of total employment in 2006. Machinery and transportation equipment have been export mainstays, as China's leading export sector for successive 11 years from 1996 to 2006. In 2006, the export value of machinery and transportation equipment reached US $425 billion, a 28.3% increase from 2005.
The six predominant industries in the manufacturing industry in China are petrochemicals, metallurgy, forestry, medicine, food and machinery. However, the electronics industry, medicine and the food segments have recently been rapidly gaining popularity. The year 2000 witnessed these industries, namely, medicine, food and electronics industries accounting for 14.7% of industrial yield. China's cotton textile industry is the largest in the world, producing yarn, cloth, woolen piece goods, knitting wool, silk, jute bags, and synthetic fibers. In addition to garments and textiles, output from light industry includes footwear, toys, food processing, and consumer electronics. China is also the world's biggest sex toy producer, with 70% of the worldwide sex toys production, generating about two billion dollars a year.
The manufacturing industry forms the backbone of the Chinese economy. Following China's entry into World Trade Organization in 2001, China has enhanced productivity by leaps and bounds. However, China is still lagging behind the developed countries in many areas of its manufacturing, despite the rapid increase in output. Technical standards of Chinese manufacturing industry are catching up, through a combination of simply copying designs and joint ventures with foreign companies. As China rises the value-chain in manufacturing, low valued-added jobs are leaving the developed seaboard cities (such as Shenzhen and Hangzhou) for inland provinces where wages are lower.
China is the world's second largest pharmaceutical market after the US
About the industry:
- Output from China's pharmaceutical industry grew 22.3% annually to ¥1.04 trillion in 2009 from 2003;
- In January-July 2011, output from China's pharmaceutical industry grew 29.6% year on year to ¥802.4 billion; bilateral pharmaceutical trade climbed 40.1% to $40.99 billion during the period, where exports were up 36.6% to $25.31 billion and imports were up 46.1% to $15.68 billion;
- In January-November 2010, production of traditional Chinese medicine was up 23.4% year on year to 1.79 million tons; production of active pharmaceutical ingredients was up 20.1% year on year to 2.04 million tons;
- In January-August 2010, China's pharmaceutical industry profited ¥78.8 billion, up 32.8% year on year;
- In 1H 2010, China exported $6.19 billion worth of medical equipment, up 27% year on year, with Asia being the largest export market;
- China's urban per capita spending on healthcare increased 2.7 times to ¥856 in 2009 from 2000; rural per capita spending on healthcare increased 3.3 times to ¥288 in 2009 from 2000;
- The Chinese government's expenditure on healthcare reform is expected to grow 27.2% annually to ¥515 billion in 2011 from 2009.
About pharmaceutical companies:
- By the end of 2009, China had 6,807 pharmaceutical companies with at least 500 employees; they posted ¥908.8 billion in total revenue;
- The top 3 pharmaceutical companies captured an approximate 20% market share in 2009, compared to 90% in the US and 73% in Japan;
- Foreign-funded or joint venture pharmaceutical companies accounted for 30% of total number and 27% of total revenue in 2009;
The top five mainland-listed pharmaceutical companies by market cap are:
- Shanghai Pharmaceuticals Holding Co (SHA: 601607, HKG: 2607), based in Shanghai
- Jiangsu Hengrui Medicine Co (SHA: 600276), based in Lianyungang, Jiangsu
- Kangmei Pharmaceutical Co (SHA: 600518), based in Puning, Guangdong
- Sichuan Kunlun Pharmaceutical Co (SHE: 002422), based in Chengdu, Sichuan
- Sanjiu Medical & Pharmaceutical Co (SHE: 000999), based in Shenzhen, Guangdong
The real estate sector makes up a significant pillar of China's gross domestic product as the nation has to build places for its 1.4 billion population to live on a booming economy. This is particularly true in cities owning to the world's largest ever ongoing rural-urban migration.
In 2010:
- Investment in the property market grew 33.2% to ¥4.83 trillion, where investment in residential properties was up 32.9% to ¥3.4 trillion accounting for 70.5% of total investment;
- Property developers bought 410 million m2 of land valued at ¥999.2 billion, up 28.4% and 65.9% respectively from the year before; land price per m2 was up 29% to ¥2,437;
- Floor space started building grew 40.7% to 1.64 billion m2, and floor space built grew 4.5% to 760 million m2, where residential space built was up 2.7% to 612 million m2;
- Overall property space sales grew 10.1% to 1.04 billion m2, where growth of residential space was up 8%, growth of office space was up 21.9% and growth of commercial real estate space was up 29.9%;
- Property sales revenue grew 19.3% to ¥5.25 trillion;
- Banks lent ¥2.02 trillion to the property market, including ¥1.4 trillion in personal mortgages.
Predictions for the future of the Chinese property market differ greatly. Some argue it will continue to expand as local governments hinge heavily on incomes from land auctions to fund daily functioning. Some argue the bubble will burst soon as property prices are far beyond most people can afford.
The top five mainland-listed property developers by market value are
- China Vanke Co (SHE: 000002), based in Shenzhen, Guangdong
- Poly Real Estate Group Co (SHA: 600048), based in Guangzhou, Guangdong
- Shenzhen Overseas Chinese Town Co (SHE: 000069), based in Shenzhen, Guangdong
- China Merchants Property Development Co (SHE: 000024), based in Shenzhen, Guangdong
- Xinhu Zhongbao Co (SHA: 600028), based in Hangzhou, Zhejiang
China's telecommunications industry is dominated by three companies, China Mobile Ltd (NYSE: CHL, HKG: 0941), China Unicom Ltd (NYSE: CHU, SHA: 600050, HKG: 0762) and China Telecom Corp (NYSE: CHA, HKG: 0728), with the first two focused on mobile services and the third on landline and broadband services.
In 2010:
- Investment in the telecommunications industry grew 14.2% to ¥319.7 billion;
- Telecom fees fell 11.7%, two percentage points faster than in 2009;
- Total telephone users grew 8.7% to 1.15 billion in number;
- Mobile service users grew 14.9% to 859 million in number;
- 3G service users grew by 34.73 million to 47.05 million in number;
- Telecommunications revenue grew 6.4% to ¥898.8 billion, including ¥628.2 billion from mobile services that was up 11.2%;
- Netizens grew by 73 million to 457 million in number, including 450 million broadband users that increased by 104 million;
- Mobile Internet users grew by 69 million to 303 million in number.
In 2010, China Mobile attracted 61.73 million customers, accounting for 53% of all new customers and taking the total number of its customers to 584 million; China Mobile's profit was six times China Unicom and China Telecom combined. However, China Unicom and China Telecom are catching up in the 3G services market as China Unicom is currently the only authorized iPhone seller in mainland China while China Telecom uses cheaper handsets and service packages to lure customers.
The top five non-big three, mainland-listed telecommunications companies by market value are
- ZTE Corp (SHE: 000063, HKG: 0763), a telecoms equipment maker based in Shenzhen, Guangdong
- Aisino Co (SHA: 600271), a developer of information security technologies based in Beijing
- Citic Guoan Information Industry Co (SHE: 000839), an information network infrastructure constructor and information service provider based in Beijing
- Shenzhen Aisidi Co (SHE: 002416), a provider of agent distribution services of mobile phones and digital electronic products based in Shenzhen, Guangdong
- Fiberhome Telecommunication Technologies Co (SHA: 600498), a manufacturer and distributor of communication equipment and the provider of network solutions based in Wuhan, Hubei
China's proven mineral resources rank third in the world after Russia and the US but in per capita terms they are just a half of the world's average. The nation has rich deposits of coal, iron, mercury, aluminum, lead, uranium, oil, natural gas and rare earth elements.
China's rapid economic growth is fueled by behemoth consumption of commodities and resources, and this strong demand exerts a profound impact on the international market. China is the largest or one of the largest users and producers of major metals such as copper, aluminum and gold. China's total energy consumption was 3.25 billion tons of coal equivalent in 2010.
In 2010 China produced
3.24 billion tons of coal, up 9% from 2009;
203 million tons of crude oil, up 6.9% from 2009;
95.1 billion m3 of natural gas, up 13.1% from 2009;
626.6 million tons of crude steel, up 9.3% from 2009;
1.87 billion tons of cement, up 15.5% from 2009;
4.79 million tons of copper, up 12% from 2009;
15.65 million tons of aluminum, up 19.9% from 2009;
340.88 tons of gold, up 8.6% from 2009.
In 2010 China imported
164.83 million tons of coal, up 31% from 2009;
293.31 million tons of crude oil, up 17.5% from 2009;
36.88 million tons of refined oil, down 0.2% from 2009;
16.61 billion m3 of natural gas, up 47.1% from 2009;
16.43 million tons of steel, down 6.8% from 2009;
4.29 million tons of copper, unchanged from 2009;
618.65 million tons of iron ore, down 1.4% from 2009.
In 2010 China exported
19.03 million tons of coal, down 15% from 2009;
3.03 million tons of crude oil, down 40.2% from 2009;
26.88 million tons of refined oil, up 7.5% from 2009;
4.06 billion m3 of natural gas, up 25.6% from 2009;
42.56 million tons of steel, up 73% from 2009;
38,730 tons of copper concentrate, down 46.9% from 2009.
The top five mainland-listed commodity miner or producers by market value are
- Aluminum Corporation of China (SHA: 601600, NYSE: ACH, HKG: 2600), based in Beijing
- Jiangxi Copper Co (SHA: 600362, HKG: 0358), based in Guixi, Jiangxi
- Anhui Conch Cement Co (SHA: 600585, HKG: 0914), based in Wuhu, Anhui
- Baoshan Iron & Steel Co (SHA: 600019), based in Shanghai
- Inner Mongolia Baotou Steel Rare Earth Group Hi-Tech Co (SHA: 600111), based in Baotou, Inner Mongolia
China's consumer and retail industry is undergoing rapid growth on rising personal income and an economic structure leaning toward consumer spending. This competitive market has nurtured a spate of domestic retailers and attracted foreign retailing giants, such as Walmart, Carrefour, Tesco and Metro, to have made a presence in the country.
Although China was believed to be the world's second largest spender on luxury goods in 2010, the overall retail sector is expected to be held back by ingrained saving culture, unreasonably high property prices and the so-called middle income trap in the future.
In 2010:
- Consumer price index was 3.3% with food prices up 7.2% from 2009;
- Total retail sales grew 18.4% to ¥15.46 trillion;
- Urban retail sales were up 18.8% to ¥13.37 trillion and rural retail sales up 16.1% to ¥2.09 trillion;
- Restaurant receipts grew 18% to ¥1.76 trillion;
- Retail spending on food, beverages and alcohols was up 24.5% to ¥731.6 billion;
- Retail spending on clothing, shoes and caps was up 24.8% to ¥587.4 billion;
- Retail spending on cosmetics was up 16.6% to ¥88.9 billion;
- Retail spending on jewelry was up 46% to ¥126.1 billion;
- Retail spending on fast moving consumer goods was up 25.1% to ¥203.3 billion;
- Retail spending on sports and entertainment was up 20.1% to ¥29.9 billion;
- Retail spending on household appliances was up 27.7% to ¥405.6 billion;
- Retail spending on medicines was up 23.5% to ¥298 billion;
- Retail spending on stationery was up 23.5% to ¥112.3 billion;
- Retail spending on furniture was up 37.2% to ¥70.5 billion;
- Retail spending on telecoms devices was up 21.8% to ¥79.2 billion;
- Retail spending on petroleum was up 34.3% to ¥1.04 trillion;
- Retail spending on vehicles was up 34.8% to ¥1.67 trillion;
- Retail spending on building materials was up 32.3% to ¥76 billion.
In 2010, China's top 100 retailers by revenue
- Posted ¥1.66 trillion in revenues, up 21.2% from 2009; the rate was 2.8 faster than overall retail sales growth;
- Accounted for 11% of overall retail sales;
- Were operating a total of 150,000 stores by the end of 2010, up 9.8% from 2009;
- Saw rents increase 30% and labor cost increase 15% from 2009;
- Saw online sales total ¥3 billion;
- Department store operates saw sales increase 23.2% from 2009, well above supermarket operators' 13.8%;
The top five mainland-listed retailers by market value are
- Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, based in Nanjing, Jiangsu
- Shanghai Friendship Group Inc (SHA: 600827), a department store operator based in Shanghai
- Yonghui Superstores Co (SHA: 601933), a supermarket chain based in Fuzhou, Fujian
- Rainbow Department Store Co (SHE: 002419), a department store operator based in Shenzhen, Guangdong
- Chongqing Department Store Co (SHA: 600729) a department store operator based in Chongqing
China's consumer and retail industry is undergoing rapid growth on rising personal income as well as favorable government policies meant to spur consumer spending. The highly competitive market has nurtured a spate of domestic retailers and attracted foreign retailing giants, such as Walmart, Carrefour, Tesco and Metro, all of which have a significant presence in the country.
Although China’s retail sector continues to see strong growth especially in the area of luxury goods, growth has been held back by a strong culture of saving, unreasonably high property prices and the so-called middle income trap in the future.
In 2010:
Consumer price index was 3.3% with food prices up 7.2% from 2009
Total retail sales grew 18.4% to ¥15.46 trillion;
Urban retail sales were up 18.8% to ¥13.37 trillion and rural retail sales up 16.1% to ¥2.09 trillion;
Restaurant receipts grew 18% to ¥1.76 trillion;
Retail spending on food, beverages and alcohols was up 24.5% to ¥731.6 billion;
Retail spending on clothing, shoes and caps was up 24.8% to ¥587.4 billion;
Retail spending on cosmetics was up 16.6% to ¥88.9 billion;
Retail spending on jewelry was up 46% to ¥126.1 billion;
Retail spending on fast moving consumer goods was up 25.1% to ¥203.3 billion;
Retail spending on sports and entertainment was up 20.1% to ¥29.9 billion;
Retail spending on household appliances was up 27.7% to ¥405.6 billion;
Retail spending on medicines was up 23.5% to ¥298 billion;
Retail spending on stationery was up 23.5% to ¥112.3 billion;
Retail spending on furniture was up 37.2% to ¥70.5 billion;
Retail spending on telecoms devices was up 21.8% to ¥79.2 billion;
Retail spending on petroleum was up 34.3% to ¥1.04 trillion;
Retail spending on vehicles was up 34.8% to ¥1.67 trillion;
Retail spending on building materials was up 32.3% to ¥76 billion.
In 2010, China's top 100 retailers by revenue
Posted ¥1.66 trillion in revenues, up 21.2% from 2009; the rate was 2.8 faster than overall retail sales growth;
Accounted for 11% of overall retail sales;
Were operating a total of 150,000 stores by the end of 2010, up 9.8% from 2009;
Saw rents increase 30% and labor cost increase 15% from 2009;
Saw online sales total ¥3 billion;
Department store operates saw sales increase 23.2% from 2009, well above supermarket operators' 13.8%;
The top five mainland-listed retailers by market value are
Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, based in Nanjing, Jiangsu
Shanghai Friendship Group Inc (SHA: 600827), a department store operator based in Shanghai
Yonghui Superstores Co (SHA: 601933), a supermarket chain based in Fuzhou, Fujian
Rainbow Department Store Co (SHE: 002419), a department store operator based in Shenzhen, Guangdong
Chongqing Department Store Co (SHA: 600729) a department store operator based in Chongqing <-->
China was the world's second largest total energy consumer in 2010, with consumption of coal, steel, iron ore, alumina, copper and cement ranking first worldwide. The nation's investment in clean energy rose 30% to $51.1 billion in 2010, ranking first worldwide.
In 2010:
- Total energy consumption was up 5.9% to 3.25 billion tons of coal equivalent;
- Coal consumption was up 5.3%;
- Crude oil consumption was up 12.9%;
- Natural gas consumption was up 18.2%;
- Electricity consumption was up 13.1%;
- Steel consumption was up 12.4% to 770 million tons;
- Copper concentrate consumption was up 5.1% to 7.92 million tons;
- Electrolytic aluminum consumption was up 6% to 15.26 million tons;
- Ethylene consumption was up 32.3% to 14.19 million tons;
- Cement consumption was up 14.5% to 1.86 billion tons;
- Coal imports were up 31% to 164.83 million tons;
- Crude oil imports were up 17.5% to 293.31 million tons (55% of total crude oil consumption);
- Refined oil imports were down 0.2% to 36.88 million tons;
- Natural gas imports were up 47.1% to 16.61 billion m3;
- Steel imports were down 6.8% to 16.43 million tons;
- Copper imports remained unchanged at 4.29 million tons;
- Iron ore imports were down 1.4% to 618.65 million tons.
Fossil fuels made up 91.7% of China's total energy consumption in 2010, and the government aims to reduce the percentage to 88.6% by 2015 and 85% by 2020.
The top five mainland-listed electricity producers by market value are
- China Yangtze Power Co (SHA: 600900), based in Beijing
- Datang International Power Generation Co (SHA: 601991, HKG: 0991), based in Beijing
- Huaneng Power International Inc (NYSE: HNP, SHA: 600011, HKG: 0902), based in Beijing
- Nari Technology Development Ltd (SHA: 600406), based in Nanjing, Jiangsu
- GD Power Development Co (SHA: 600795), based in Beijing
In 2009 in China:
- Water supply totaled 49.67 billion m3;
- Per capita daily water usage was 176.6 liters;
- Coal gas supply totaled 36.16 billion m3;
- Liquefied natural gas supply totaled 134 billion tons;
- Natural gas supply totaled 40.51 billion m3.
By the end of 2009 in China:
- Road length totaled 269,141km;
- Road area totaled 4.82 billion m2;
- Total number of bridges was 51,068;
- Urban daily capacity of wastewater treatment was 121.84 million m3;
- Total number of road lamps was 16.94 million;
- Total number of buses was 365,161;
- Total number of subway trains was 5,479;
- Bus route length totaled 208,250km2;
- Subway network length totaled 999km (343km in Shanghai, 228km in Beijing and 172km in Guangdong);
- Bus ridership totaled 64.02 billion people;
- Subway ridership totaled 3.66 billion people;
- Total number of taxis was 971,579;
- Total number of urban parks was 9,050;
- Total number of urban public toilets was 118,525;
- Urban tap water penetration was 96.12%;
- Urban gas penetration was 91.41%;
- Every 10,000 urban residents could use 11.12 buses;
- Every 10,000 urban residents could use 3.15 toilets.
China’s construction sector had 70,817 firms employing 36.73 million people in 2009. Of the 70,817 firms, 5,009 were government owned, 5,352 were collectively owned, 444 were owned by Taiwan, Hong Kong or Macau investors, 351 were foreign funded and the vast majority were privately owned.
The construction sector produced ¥1.56 trillion of goods and services in 2009, up 25.1% from the year before and accounting for over 4.6% of gross domestic product. A total of 2.45 billion m2 of floor spaces were built reaping ¥271.88 billion in gross profits in 2009, up 9.8% and 23.5% respectively from the year before.
China had 457 million netizens by the end of 2010, up 73 million from a year earlier. The number of broadband users increased by 104 million to 450 million in 2010.
The value of China's e-commerce transactions grew 22% to ¥4.5 trillion in 2010, where the value of B2B transactions was up 15.8% to ¥3.8 trillion, and online retail sales were up 97.3% to ¥513.1 billion, which accounted for 3% of total retail sales.
Dominant players in China's Internet space:
- Baidu.com, China's most used search engine, controls over 70% of search market;
- Alibaba,com is the operator of China's top C2C site Taobao.com that recorded ¥400 billion of transactions in 2010, and Alipay, China's most used third party payment service that had 550 million accounts by the end of 2010;
- Tencent, provider of China's most used instant messaging service QQ that had over 700 million accounts by the end of 2010.
- Sina.com.cn is an aggregate portal that is currently focuses on its Weibo microblogging service after it drew over 200 million users in less than two years;
- Youku.com and Tudou.com are China's video hosting duopoly that are responsible for a combined 40% share of video ad revenues;
- Qihoo 360 is China's most used antivirus software developer that had over 400 million users by June 2011.
China's mobile Internet users grew by 69 million to 303 million in number in 2010, with 90.8% of them using the mobile Internet service to read news, 47.9% for chatting and 46.9% for search.
China's major Internet companies are listed in either Hong Kong or New York:
- Baidu Inc (NASDAQ: BIDU), based in Beijing
- Tencent Holdings Ltd (HKG: 0700), based in Shenzhen, Guangdong
- Alibaba.com (HKG: 1688), based in Hangzhou, Zhejiang
- Sina Corp (NASDAQ: SINA), based in Shanghai
- Youku.com Inc (NASDAQ: YOKU), based in Beijing
- Tudou Holdings Ltd (NASDAQ: TUDO), based in Shanghai
- Qihoo 360 Technology Co (NYSE: QIHU), based in Beijing
Output of China's media industry expanded 17.7% to ¥580.8 billion in 2010 and is expected to be ¥688.24 billion in 2011. Ads revenue growth from the Internet, film and broadcast segment markets was up 54.9%, 47.4% and 34% respectively from the year before.
Newspapers:
- China had 1,937 newspapers that printed 43.91 billion copies in 2009;
- Newspaper ad revenues were ¥91.1 billion in 2009;
- Revenue from real estate, retail and auto ads in newspapers (top three advertisers) was up 1.6%, 21.9% and 35.7% year on year respectively in 1H 2010.
Periodicals:
- China had 9,851 periodicals that printed 3.15 billion copies valued at ¥20.24 billion in 2009;
- Periodical ads revenue was down 2.1% to ¥3.04 billion in 2009, accounting for less than 4% of total revenue of the publications industry;
- Over 2/3 of the periodicals such as scientific findings or industry reports were not commercially available in 2009.
Radio & TV:
- China's radio revenue was up 12.8% to ¥8.15 billion in 2009;
- Radio revenue accounted for 3.52% of total ads revenue in 2009, down from 3.6% in the year before;
- Increased number of private cars is an impetus to radio ads
- Total radio and TV revenues were expected to exceed ¥200 billion in 2009;
- The number of cable TV users was up 6.9% to 175 million in 2009;
- The number of digital TV users was up 39.7% to 63.22 million in 2009;
- 7.13 million households paid ¥1.82 billion for premium digital TV programs in 2009, up 58.6% and 27.8% respectively from the year before.
Movies:
- China's box offices grossed ¥10 billion in 2010, up 64% from the year before;
- Ticket revenue from domestic movies accounted for 56% of total grossing in 2010;
- Close to 300 million tickets were sold in 2010;
- Over 1,500 screens were launched in 2010, taking the total number to over 6,000.
TV dramas:
- 402 TV dramas with 12,910 episodes were given licenses to be aired in 2009, compared to 502 dramas and 14,498 episodes respectively in the year before;
- 60% of the episodes were aired between prime time (19:20 – 22:20);
- 20% of the episodes were never aired.
Internet:
- China had 457 million netizens by the end of 2010, up 73 million from a year earlier;
- The number of broadband users increased 104 million to 450 million in 2010;
- The value of e-commerce transactions grew 22% to ¥4.5 trillion in 2010, where the value of B2B transactions was up 15.8% to ¥3.8 trillion, and online retail sales were up 97.3% to ¥513.1 billion, which accounted for 3% of total retail sales.
@2011 China Economy @ The China Perspective.
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