Easing Policies To Stimulate Retail Sales In China

Knight Frank and Holdways have published the latest China Retail Property Market Watch report. With several luxury retailers feeling pain in the Hong Kong market how are the Mainland Chinese retail prospects.

In the first half of 2015, China’s retail market improved, attributable to the stock market rally. This enhanced consumption desire and power, as well as supportive policies from the government, such as interest rate and import tariffs cut.

During the first half of 2015, Shanghai recorded the highest retail sales value among China’s major cities, followed by Beijing. Meanwhile, retail sales in Hangzhou grew at the fastest pace (21.0% year on year).

The take-up of prime shopping centres in major cities was satisfactory in the first half of 2015 despite an influx of new supply. According to Knight Frank and Holdways data, although the total stock of prime shopping centres in seven major Mainland cities grew 9.8 percent year on year, five of the seven major cities recorded falls in vacancy rates, compared to the same period last year. The vacancy rate in Hangzhou’s high-end shopping centres remained the lowest among China’s seven major cities in the first half of 2015.

Mid-tier retailers continued to expand, although luxury brands remained cautious amid the continual implementation of anti-corruption policies in China.

Traditional bricks-and-mortar stores continued to face increasing challenges from e-commerce. Shopping mall operators and retailers are promoting Online-to-Offline (O2O) business, to draw customers from online channels to physical stores.

Looking forward, David Ji, Director, Head of Research & Consultancy of Greater China at Knight Frank expects the recent volatility in the Chinese stock market could drag down purchasing sentiment in the short term, but the Mainland government will put effort into stimulating the retail sector, to transform the economy from being investment-fuelled to being consumption-driven.



Top stories from across the globe

  • Singapore Stresses Under a Wealth of Worries
  • A Short History of Investing in Gold – and What to Expect for 2017
  • Asia Pacific's Top Six Credit Risks For 2017
  • The 5 Most Shocking News in 2016
  • Hazel Moore: Banks Are Completely Wasting Valuable Customer Data
  • Morgan Stanley CEO Makes First-Ever Stock Sales After Bank Rally


finews.asia Networking Event

finews.asia Networking Event

Show pictures

stars China Symposium 2016

stars China Symposium 2016

Show pictures

Compare my salary

Compare my salary

Feeling Underpaid? Benchmark your salary by job title, company and location. Find out where you stand in minutes.

compare my salary


Newsletter-SymbolFree Subscription

Subscribe to our free newsletter and receive daily email alerts from the finews editorial team with a list of the top featured articles.

Share with us

Do you have any market intelligence to share with finews.asia – email us on info@finews.asia – All communication is completely confidential and strictly anonymous.