Amidst the great changes happened, China's real estate industry has gradually shifted from decades of prosperity to bleakness since the COVID-19 pandemic. While there were signs of recovery in the industry during the first quarter of 2023, this momentum did not sustain well. Similar to China, Japan's real estate industry also went through a downturn after a period of prosperity, but it experienced a remarkable resurgence thanks to the successful implementation of the urban center plans of Tokyo. The construction experience of Tokyo's “Shintoshin”, or "new urban center" mainly involves building residential functional zones with a lifestyle focus, adopting a three-dimensional "city within a city" layout, and creating open and beautiful street scenes. This experience of Japan offers three main insights for China’s domestic development: the application of advanced comprehensive planning concepts, the implementation of a government-enterprise cooperation model for property development and operation, and the establishment of a multi-level coordination mechanism, in the opinion of
ANBOUND’s founder Kung Chan.
>>With China working on its dual-carbon goals and under the current high temperature, virtual power plants have been consistently dominating the country’s new energy sector since the beginning of this year. Reviewing the development experience in the United States and Germany, China's virtual power plants, latecomers, are mainly government and state-owned enterprises-led and face many practical issues, without having formed a relatively mature industry chain. There are still issues with low levels of technological modernization, limited marketization of transactions, and low market awareness among electricity users in the country’s virtual power plant sector. Accelerating R&D along increasing policy support and utilizing modern digital technology that help enhance the accessibility to modern technology. In addition, it is necessary to promote reforms in the electricity system, establish reasonable competition mechanisms, improve electricity market operation mechanisms, and enhance the market awareness of electricity users, wrote
Xia Ri, assistant researcher at ANBOUND.
>>In the 2nd quarter, the total volume of China's structural policy tools increased by only RMB 51.4 billion, which represents a significant narrowing compared to the previous quarters since the second half of last year. This implies that the effectiveness and impact of the central bank's structural policy tools are encountering bottlenecks. With the increasing demand for policy support in the second half of 2023, structural monetary policy itself also requires adjustments and have reflections. To achieve the goal of the economic growth steadily moving, the policymakers shall consider reforms that go beyond macroeconomic policies to unleash demand, according to
Wei Hongxu, senior economist at ANBOUND.
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