Boston, MA -- (SBWIRE) -- 07/17/2012 -- Over the forecast period, China's infrastructure development is expected to be key to the growth of the country's construction industry. Specifically, in response to the country's rapid urbanization, the Chinese government plans to invest CNY7.0 trillion (US$1.03 trillion) into infrastructure development from 2011 to 2015. Moreover, the country is a preferred destination for foreign investors and manufacturing companies due to the high availability of cheap labor, with levels of commercial construction therefore expected to continue to rise over the forecast period. However, the Chinese construction industry may find it difficult to attain international standards due to continued controversy regarding forced land acquisition, poor construction quality, and corruption.
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Despite registering one of the strongest population growth rates in China during the review period, the Beijing province recorded relatively weak growth in residential construction from 2007 to 2011. With the local government in Beijing continuing to actively discourage new residential developments in order to help ease the strain on the province's overloaded transportation and utility networks, Timetric expects growth to remain subdued over the forecast period.
- China attracted a considerable amount of foreign direct investment (FDI) during the review period (2007-2011), which helped the Chinese construction industry to achieve a review-period CAGR of 23.24%.
- High levels of investment in industrial facilities during the review period is placing increasing pressure on Beijing's infrastructure, with infrastructure limitations now commonly identified as the primary barrier to the city's future growth.
- The volume of industrial construction activity in Hebei is expected to increase significantly over the forecast period, fuelled in part by Hyundai Engineering and Construction Group's proposed CNY6.3 million investment in an International Automobile Trading Center in the Fuxing District of Handan.
- Heilongjiang's construction industry recorded a CAGR of 25% during the review period, strong growth that was supported by the robust performance of the region's industrial and institutional construction markets.
- A CNY1.25 billion investment to finance construction of the ZhangHu Railway is expected to help maintain strong growth in infrastructure construction within the Inner Mongolia province.
This report provides a comprehensive analysis of the construction industry in Northern China:
- Historical (2007-2011) and forecast (2012-2016) valuations of the overall construction market in Northern China
- Region specific historical and forecast construction industry valuations for Beijing, Hebei, Heilongjiang, Inner Mongolia, Jilin, Liaoning, Shandong, Shanxi and Tianjin
Companies Mentioned in this Report: China Railway Construction Corporation Limited, China Railway Engineering Corporation, China Metallurgical Group Corporation, China State Construction Engineering Corporation Ltd, China Communications Construction Company Ltd
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