JPMorgan Chase: Housing activity can boost weak construction

The Chinese construction contractor will benefit from the expansion of the Xu Bin, which offers a lucrative commitment and a ready-made market, said a study published by Jing Ulrich, an economist at JPMorgan Chase. The report noted that more and more private property developers began to actively prepare to meet the housing market focus on the development of low-cost housing structural reforms. This is partly attributable to the Government's strong determination to increase such housing.　　In the commercial housing market boom period for the developers of the chicken, now has become a guarantee of sales of sweet cakes. In her report, Ms Ulrich said the construction of affordable housing could boost China's slightly weaker construction industry, which solves 36 million of the population's employment and is a major driving force for many downstream industries. Competition with commercial housing is concentrated in the low-end market.　　The increase in the supply of affordable housing should not pose too great a threat to ordinary commercial housing, even if the formation of substantial competition, it is likely to only happen in the low-end housing market (in this market, only a few listed developers are more active). Due to the improper incentives and local financing problems, the housing targets have not been achieved in recent years. According to estimates released by the World Bank, the target of 3.1 million new housing units last year was only two-thirds.　　In fact, according to the Ministry of Land and Resources information, in the designated for the construction of affordable housing and low-rent land, the actual allocation of land in the year is only 24.2% of the annual target. However, land supply is not the main indicator of the final supply of affordable housing, nor is it the main problem. The main obstacle to the development of affordable housing projects is the lack of funds and the inconsistency of local and central government interests. But in the past two months, the solemn commitment of various levels of government, and a number of key construction enterprises and developers are also active performance, strengthen the focus on this area.　　A number of local governments have increased their capacity for the past two months, while the Ministry of Housing and Urban and rural construction has intensified its inspections of local areas. The central government has set a more aggressive target this year, and its budget to invest in affordable housing has reached 63.2 billion trillion yuan (an annual growth of 14.8%), of which 61.6 billion is a transfer payment made by the central government to local governments.　　However, according to some domestic experts estimated that the 2010 only low-cost housing construction funds may reach 450 billion yuan, most of which will continue to finance the burden of the local government. (Stock market Weekly feeds)