China has massive construction plans underway, including making provision for the movement of 250 million people to its megacities in the next ten years, despite efforts to rebalance its economy to a more service-oriented base.
Domestic consumer spending is growing, shifting dependence away from the export sector. The yuan fell 6 percent against the US dollar, helping to make exports cheaper and helping Beijing to meet its goal of slowing down the outflow of capital by making overseas purchases more expensive.
Residential construction played a large part in the country meeting its GDP targets in 2016, and price growth of close to 25 percent in Shanghai, Beijing and Shenzhen since 2015 attracted high levels of investment. Recently, price growth slowed as the result of new government credit measures.
Infrastructure remains a buoyant market. Daxing International, a new USD12bn airport south west of Beijing, is the biggest construction project in China. A new subway (one of two under construction in the city) will provide a high-speed connection to the capital. China Zun, at 108 floors, is the tallest building under construction in Beijing.
China has much at stake following the US elections, including the prospect of increased protectionism from the Trump administration, and a deterioration of Chinese‑US political relations. There is also a risk of a credit squeeze should the volume of non-performing loans keep growing.