A SPEECH by Chinese Vice Premier Li Keqiang calling for an acceleration of urbanization of the country has positive implications for companies such as Singapore-listed China New Town Development.
The major policy support direct from the central government for developing new towns could be favorable for China New Town’s existing and future projects.
The Chinese Vice Premier called for more efforts to accelerate China's urbanization last Thursday, as part of the government's efforts to promote economic restructuring and expand domestic demand during this process, according to a report at the government’s official website (www.english.gov.cn)
Li made the remarks at a training course in Shanghai, saying China's urbanization, which still has much room for expansion, is China's largest source of domestic demand as well as the largest potential driver for development.
Further, urbanization would bolster domestic demand, improve people's livelihoods and solve rural problems, Li said.
Li noted that China would coordinate development among cities and towns, and step up development of cities in China's central and western regions, while prioritizing development in eastern cities.
He demanded more efforts to solve issues for rural workers including settlement, education for children, housing and social security during the urbanization process.
To steadily push forward urbanization in China is an urgent job at present and also a long-term task, Li added.
The government said in March that China's rapid urbanization would continue for 15 to 20 years and China would become an urban society in five to six years, with the urbanization rate reaching or exceeding 50 percent.
China New Town has three projects:
a) Luodian project in Shanghai, where it has sold RMB 5.3 billion worth of land parcels since 2003. The project site is 6.8 sq km, and is substantially completed.
b) Wuxi project (site area 8.6 sq km). Expected completion: 2013.
c) Shenyang project (site area 20 sq km). Expected completion: 2015.
Recent story: CHINA NEW TOWN: Not affected by austerity measures on China real estate
