Where Will Growth Come From in China?

SHANGHAI — The ongoing Sino-American trade war, geopolitical tensions in the East Asia region and the continuing protests in Hong Kong are all raising fears among global fashion and luxury brands about the Chinese market. But even as these political tensions stir fears of a recession in the U.S. and elsewhere, public consumption in China continues to grow fast, as urbanization relocates more Chinese to city life and a good percentage of them move into the middle-income bracket. Meanwhile, mobile payment and social media have made it easier than ever for brands to acquire new customers across the country. Alibaba’s annual revenue jumped 51 percent, while its rival JD.com reported record-breaking net revenue and profit in the second quarter ended June 30. Commercial property developers and retailers in the region are also doing well. Hang Lung Properties, the owner of Shanghai’s top luxury shopping mall Plaza 66, saw 7 percent growth in mainland leasing business in the first half of 2019 and is opening its 66 shopping mall franchise in Kunming, Wuhan and Hangzhou over the next five years. Swire Properties, which owns the Tai Koo series complex in Beijing, Shanghai, Guangzhou and Chengdu, reported 16 percent growth in revenue in the first half

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