• Dhaka Sat, 20 APRIL 2024,
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China’s State-owned Enterprises Rise as Private Companies Face Collapse in Real Estate Turmoil
China’s real estate market is undergoing a crisis with sluggish sales and a slow economic recovery. Meanwhile, Chinese state-owned enterprises (SOEs) are rapidly gaining dominance in real estate sales, while private companies, including giants like Evergrande Group and Country Garden, face looming debt defaults. This power shift is raising questions concerning the Chinese regime’s intent to expand the SOEs and its implications for the broader economy. This phenomenon in the Chinese economy gave rise to the catchphrase, “The state enterprises advance, the private sectors retreat,” meaning that the SOEs are expanding and forcing out private companies. The regime would generally favor SOEs in policies and subsidies and, therefore, gradually eliminate competitors from the market. This trend signals that China’s real estate power landscape is facing a major reshuffling. Real estate contributes to around 30 percent of China’s GDP and is, therefore, critical to the stability of the country’s economy. Data shows that the total sales of China’s top 100 real estate companies from Jan. to Oct. amounted to 4.56 trillion yuan (US$624.7 billion), a decrease of 12.8 percent compared to the same period last year. The top five companies on the sales list were dominated by SOEs backed by the Chinese Communist Party (CCP). Topping the sales list was Poly Real Estate, a subsidiary of the state-owned China Poly Group, whose sales from Jan. to Oct. rose 1.4 percent year-on-year to 368.21 billion yuan (US$50.4 billion). This amount is 6.7 times that of 22nd-ranked China Evergrande’s 54.6 billion yuan (US$7.5 billion). In the second to fifth place on the sales list, all are SOEs, and three out of four of them had increased their sales volume in the past year. In China’s real estate sales rankings from Jan. to Oct., the pattern of the top 100 real estate companies is undergoing a complete remake. Country Garden, a privately owned company, fell out of the top five and ranked sixth, with its sales volume plummetting 49.3 percent year-on-year. Another private property developer, Sunac China, saw their sales plunge the most year-on-year by 50.5 percent among the top 50 companies. The real estate SOEs’ sales performance is even more remarkable in the land market. The amount of land ownership is a crucial resource for real estate companies to develop, which determines their future market share. However, due to the limited capital strength and the downturn of the Chinese real estate industry, the once-large private companies are no longer in a position to acquire more land. The CCP’s state-owned real estate companies are taking advantage of the situation to take control of high-quality land resources. According to data from January to the end of October, among the top 100 Chinese real estate companies, nearly 50 percent of them have almost stopped acquiring land, and most of these real estate companies are ranked in the lower half of the top 100 in terms of sales performance. The top ten real estate companies in land acquisition are all SOEs controlled by the CCP. SOEs also accounted for 66 percent of the land acquisitions, while private Chinese companies only accounted for 22%. This shows that the future dominance of China’s real estate market will be in the hands of these SOEs. Mike Sun, a North American investment consultant, spoke to The Epoch Times: “Seeing the difficulties experienced by private real estate companies, the SOEs seized the opportunity to acquire land for two major reasons. First, they wish to stabilize the market by having the CCP own most of the land in the country. The regime certainly does not want to see their land depreciate in value. Secondly, the SOEs have not suffered significant losses during the real estate crisis. So they are taking advantage of the decline of the private companies to accelerate their goal of expanding state ownership at the expense of privately owned companies, thus achieving dominance in the real estate power map.” Mr. Sun believes that the economic development model led by real estate development and urbanization since 1998 has come to an end and that the collapse of the real estate sector is inevitable. Since the second half of 2021, property prices in China have continued to fall, breaking the previous market trend of only rising prices. China’s economy has also been on a downward trend, with the youth unemployment rate hitting record highs at 21.3 percent in July. Some academics suggest that the actual figure could be as high as 46.5 percent. The real estate crisis in China is also starting to impact the financial sector, which may lead to a broader economic crisis.
11 Nov 2023,19:37

India: 17 killed in railway bridge collapse
At least 17 laborers on a railway bridge crossing a ravine in India's Mizoram state died when the structure collapsed on Wednesday. The Indian Express newspaper quoted a policeman saying "many others" were missing. What officials are saying "Deeply saddened and affected by this tragedy," Mizoram chief minister Zoramthang, who uses only one name, said on X, the social media platform formerly known as Twitter. "I extend my deepest condolences to all the bereaved families and wishing a speedy recovery to the injured." "Sending gratitude to the people who have come out in large numbers to help with rescue operations," Zoramthang said. Indian Prime Minister Narendra Modi said rescue operations were underway. Police said there were some 40 workers at the site when the accident happened. He added that he was "pained" by the accident and offered his "condolences to those who have lost their loved ones", his office said on X. The government has already said it will pay some $2,400 to the next of kin of those killed. Wider worries about transport safety The bridge has been under construction for nearly two years. There have long been concerns about India's transport infrastructure, after major disasters on the country's bridges and highways. A colonial-era bridge in Morbi, in the western state of Gujarat, collapsed in October last year, killing at least 132 people. A suspension bridge in India's poorest state, Bihar, collapsed in June killing one person. Mizoram lies on India's border with Myanmar, in the far eastern part of India. The bridge is near Sairang, a town around 20 km (12 miles) from the state capital Aizwal and links the city with the rest of India. 
23 Aug 2023,15:03

China: 11 killed after school gym roof collapses
At least 11 people were killed after a concrete roof collapsed on a number of people at a school gymnasium on Sunday, state media reported on Monday. Six of those died after attempts to treat them failed, state broadcaster CCTV reported. Around 15 people had initially been thought to have been trapped under the debris. But authorities pulled around 14 individuals from the rubble, CCTV reported. Their ages are not known yet. "A search and rescue operation involving nearly 160 firefighters and 39 fire trucks has been launched," the broadcaster said. People in charge of construction company arrested The deadly accident took place at the No. 34 Middle School in Longsha district in the northeastern city of Qiqihar. The accident occurred at around 2:56 p.m. local time Sunday (0656 GMT), according to the provincial fire and rescue department, according to CCTV. State-run news agency Xinhua said that construction workers had placed perlite — a form of volcanic glass — on the roof. An initial investigation found that heavy rain had caused the perlite to expand, thus bringing down the roof. "Those in charge of the construction company have been taken into police custody," the broadcaster said. There were reportedly 19 people at the gymnasium at the time of the accident, and four of them managed to escape. An overhead aerial view of the scene from pictures on social media showed a completely collapsed roof with rescue workers in the gym next to large boulders of concrete. Lax building safety standards are often the reason for such accidents in China which are not uncommon.
24 Jul 2023,15:22

Brazil: Building collapse leaves over a dozen dead
The incident marks the second tragedy of its kind within three months in the northeastern state of Pernambuco. In April, a building disintegrated in the city of Olinda, claiming at least five lives. The collapse of an apartment building claimed the lives of 14 people in Brazil, including six children, firefighters said on Saturday. The partial collapse of this illegally occupied residential structure occurred in the Paulista suburb of Recife, the capital of northeastern Pernambuco state. Heavy rains lashed the region during the incident, catching many residents off guard as they slept. Search and rescue teams, assisted by sniffer dogs, combed through the rubble, managing to save two 15-year-old girls and a 65-year-old woman. An 18-year-old man, initially rescued, succumbed to his injuries later. 'Coffin block' Although occupation of the building had been forbidden since 2010, the structure had become a refuge for homeless people. The Paulista city hall referred to the structure as a "coffin block," a term used for large-scale buildings constructed in the 1970s in Recife's metropolitan region, as reported by the Folha de Sao Paulo newspaper. City officials acknowledged that the issue of closed buildings being used by people in Paulista is a chronic problem and was even raised during a recent visit by President Luiz Inacio Lula da Silva, a Pernambuco native. Pernambuco Governor Raquel Lyra expressed her condolences via Twitter and assured the affected families of the state government's unwavering support. Second building collapse The incident in Paulista marks the second tragedy of its kind within three months in Pernambuco. In April, the disintegration of a building in the neighboring city of Olinda claimed at least five lives. Building collapses in Brazil are often concentrated in impoverished neighborhoods where illegal construction is rampant. Recife, a coastal city with a population of approximately 1.5 million, has been grappling with incessant heavy rainfall in recent days.
09 Jul 2023,10:51

France: 2 bodies found after building collapse
The corpses have been found in an ongoing rescue operation after a building collapse in Marseille. More than 17 hours since the collapse "the situation is not yet stabilized," Prosecutor Dominique Laurens said. Two bodies have been found in the rubble of a building that exploded and collapsed in Marseille, authorities said Monday, as rescue efforts to search for those still missing continues. "Given the particular difficulties of intervention, the extraction (of the bodies from the site) will take time," the fire department said in a statement, news agency AFP reported. "The judicial authority will then proceed to identify" the victims, the statement said. The residential building in the central La Plaine district of France's second-largest city came crashing down after a blast that occurred shortly before 1 a.m. local time, (0000 UTC/GMT) on Sunday. Marseille mayor Benoi Payan said rescuers have not given up hope of finding survivors. "There is still hope, and as long as there is hope, we will not stop," Payan said at the scene of the incident. He said emergency workers were carrying out a "surgical" operation at the site, to "protect at all costs" any potential survivors. Still a risk of another collapse According to Payan, two neighboring buildings had also collapsed partly and a third one was at risk of doing so following the explosion that resounded in other neighborhoods. Over 100 firefighters were working against time to extinguish the flames deep within the rubble in a difficult rescue effort aimed at not harming people that may be buried underneath and not compromising vulnerable buildings nearby. However, more than 17 hours since the explosion "the situation is not yet stabilized," Marseille Prosecutor Dominique Laurens said at an evening press briefing on Sunday. Laurens had earlier told the media that eight people from the building "were not responding to phone calls." The cause of the explosion is yet to be known but investigators are looking at the possibility it was the result of a gas leak.
10 Apr 2023,17:07

Death toll rises following China coal mine collapse
Rescue operations involving 300 firefighters, 60 fire trucks and six rescue dogs have resumed at the coal mine in China's Inner Mongolia region, where five people have now died. The death toll at the site of a collapsed coal mine in China rose to five after rescue operations were resumed on Thursday. More than 50 people were trapped when rocks at the coal mine started slipping and led to a collapse. More than 45 people are still missing and six are injured, state media reported. Search and rescue efforts had been suspended at the coal mine in China's Inner Mongolia region after a massive landslide occurred at another site, according to state media reports. The open-pit coal mine, operated by Xinjing Coal Mining Co, had collapsed in the afternoon on Wednesday. "I had just started work when I saw slag falling down the slope. The situation got worse and worse," a rescued worker named Ma Jianping told CCTV. Rescue operations underway President Xi Jinping had ordered search and rescue efforts after the collapse on Wednesday, state media reported. "We must make every possible effort to rescue the missing persons and treat the injured," Xi said. Before the landslide, four rescue teams of 109 people were searching for the trapped miners, according to state media. As many as 300 firefighters, 60 fire trucks, six rescue dogs and more teams of about 200 people have been sent to the site, state media said. "At 6:44 pm (on Wednesday), another large landslide occurred, and the rescue was forced to be interrupted," Wei Zhiguo, who is leading the rescue operations, told state broadcaster CCTV. Deadly mines China relies heavily on coal to meet its energy requirements, however, the country's coal mines are among the deadliest in the world. Inner Mongolia is among the top coal-producing regions in China. Following calls from the government, mines are trying to amp up their output. Over the years, safety at mines has improved in China but accidents still occur frequently mostly because safety regulations are not implemented properly. 
23 Feb 2023,19:16

India: Dozens dead in Gujarat bridge collapse
Hundreds of people were on the historic suspension bridge when it fell into a river. The structure had only just reopened to the public after months of repair work. At least 132 people were killed when a pedestrian bridge in the western Indian state of Gujarat collapsed on Sunday evening, according to local media and officials. Dozens more people are believed to be critically injured and some are still missing. What we know so far "A rescue operation is underway," Gujarat state minister Brijesh Merja said. "There are reports that several people have suffered injuries. They are being rushed to hospitals.'' At least 350 people were on the 230-meter (745-foot) bridge across the Machhu River in the town of Mobi at the time of the incident, local reports said. The Press Trust of India news agency quoted officials as saying the structure gave way because it could not handle the weight. Footage broadcast by local TV channel Zee News showed dozens of people clinging to cables as emergency teams tried to reach them. The historic bridge was built in the 19th century during British rule. It reopened to the public just days ago after being closed for six months of renovation work. Indian Prime Minister Narendra Modi, who is in his home state of Gujarat for a three-day visit, called for rescue teams to be mobilized quickly and said compensation would be given to the families of the dead. Modi also said he was "deeply saddened by the tragedy."
31 Oct 2022,11:58
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