Chinese official warns of excessive “empty cities”

Chinese official warns of excessive “empty cities”

(Xinhua)    15:31, August 10, 2013

Reckless expansion of cities in China has left many of them empty, according to a Chinese economic planning official. Qiao Runling, deputy director of the China Center for Urban Development under the National Development and Reform Commission, said local governments had relied on quick urbanization to stimulate economic growth and generate fiscal revenue. “Nearly every big or medium-sized city across China has plans to erect a new town,” Qiao said, quoting the result of his research at a forum on urban development held in Jiangxi Province this week. According to the official, new towns are usually bigger than old ones and many cities are left empty as a result. “China now has an oversupply of cities, given the number of new urban districts that we have,” Qiao said, adding that the excess of new urban districts are especially serious in medium and small-sized cities in central and western parts of the country. Qiao warned that China’s modern urbanization should no longer be bolstered by investment or construction projects but focus on structural reform.
Official statistics showed that land used for urban construction rose by 83.41 percent from 2000 to 2010, while the urban population saw an increase of 45.12 percent in the period

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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