5. Changing Perceptions Some things you may know about China…. … ..and some things you probably didn't
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8. But China has come far: The History of Property Investment 1988 1989 1990 1991 1997 2005 2006 P&G enter Market/ Land lease system established Shanghai Centre - First real property project Macquarie GPA deal kicks off hard asset investment 1988 1990 2005 The property market since open policy 2003 Asian Financial crisis scares investors away 1997-8
17. China’s Cities Hierarchy Shanghai, Beijing, Hong Kong Guangzhou, Shenzhen, Macau Chongqing, Chengdu, Tianjin Wuhan, Xi’an, Qingdao, Suzhou Shenyang, Hangzhou, Nanjing, Dalian, Dongguan, Xiamen Harbin, Zhengzhou, Fuzhou Nanning, Wuxi, Changsha Kunming, Jinan, Ningbo, Nanchang Hefei, Changzhou, Changchun II III III II I
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20. Dongguan Qingdao Shenyang Xiamen Suzhou Nanjing Shenzhen Tianjin Dalian Chengdu Xi’an Guangzhou Wuhan Hangzhou Chongqing Shanghai Beijing Hong Kong Macau Tier I and II Cities: GDP Growth Tier I Tier II % 2005 Strongest Economic Growth in Tier II cities II III
21. Foreign Investors Move Across China The Beginning: Hong Kong Wave One: Beijing, Shanghai Guangzhou Wave Two: Chengdu, Chongqing, Dalian, Hangzhou, Harbin, Jinan, Macau, Shenyang, Suzhou, Tianjin, Wuhan, Wuxi, Xian, Xiamen
48. Bohai Bay 21% Yangtze River Delta 43% Pearl River Delta 21% Other 15% Survey of 138 Logistics Operators Source: China Supply Chain Council, Jones Lang LaSalle, 2006 China Warehousing Facilities: Current Activity
49. China Warehousing Uses Survey of 138 Logistics Operators Source: China Supply Chain Council, Jones Lang LaSalle, 2006 Storage 25% Trans-Shipment 20% Industry Operations 9% Value-Added Services 20% Reverse Logistics 7% Consolidation 18% Current Warehousing Uses
50. Survey of 138 Logistics Operators Source: China Supply Chain Council, Jones Lang LaSalle, 2006 Value-Added Logistics Consolidation Trans-Shipment Industry Operations Reverse Logistics Storage Score China Warehousing Uses – Growth Prospects
51. Source: Ministry of Communications of PRC, November 2006 China’s Future Expressway Network
52. Source: Ministry of Communications of PRC, November 2006 China’s Existing Rail Network
55. Beijing 13% Tianjin 5% Shanghai 32% Suzhou 7% Guangzhou 12% Shenzhen 9% Chengdu 6% Xiamen 3% Greater Bohai Bay 21% Yangtze River Delta 43% Pearl River Delta 21% Other 15% Survey of 138 Logistics Operators Source: China Supply Chain Council, Jones Lang LaSalle, 2006 Region City Warehousing Facilities: Current Presence
56. Greater Bohai Bay 23% Yangtze River Delta 27% Pearl River Delta 35% Other 15% Beijing 13% Tianjin 8% Shanghai 23% Suzhou 2% Guangzhou 19% Shenzhen 15% Chengdu 12% Region City Survey of 138 Logistics Operators Source: China Supply Chain Council, Jones Lang LaSalle, 2006 China Warehousing Facilities: Plans for Next 2 Years
57. Source: Jones Lang LaSalle, 2006 US$/sq m/year Warehousing Rental Ranges
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59. China: Retail Futures China’s Consumer Groups The Lost Generation The Emerging Middle Classes The Girls of the Economic Miracle The Little Emperors The New Elite and Super Rich The Vibrant Youth
60. World Largest Shopping Malls China South China Mall, Dongguan Golden Resources Mall, Beijing Panda Mall, Chengdu Grandview Mall, Guangzhou Oriental Plaza, Foshan Mall of China, Qingdao Triple 5 Mall, Wenzhou North America West Edmonton Mall, Alberta South Coast Plaza, Orange County Sawgrass Mills, Ft Lauderdale Mall of America, Minnesota Del Amo Fashion Center, LA Source: New York Times