Shelter + Economy, Shanghai (Justin)

Justin Lai

Nov. 1st, 2010

Shanghai Economy

• Shanghai is often regarded as the centre of finance and trade in mainland China. Modern development began with the economic reforms in 1992, a decade later than many of the Southern Chinese provinces, but since then Shanghai quickly overtook those provinces and maintained its role as the business centre in mainland China. Shanghai also hosts the largest share market in mainland China.
• According to official statistics from 2005, the non-state sector has grown to generate 42.5 percent of Shanghai's GDP, while the reformed state-sector generates 57.5 percent of GDP.
• Since 2005, Shanghai has ranked first of the world's busiest cargo ports throughout, handling a total of 560 million tons of cargo in 2007.
• Shanghai has strong links to both the Chinese interior and the central government, and a strong base in manufacturing and technology. Shanghai has increased its role in finance, banking, and as a major destination for corporate headquarters, fueling demand for a highly educated and modernised workforce. Shanghai has recorded a double-digit growth for 15 consecutive years since 1992. In 2008, Shanghai's nominal GDP posted a 9.7% growth to 1.37 trillion yuan. The Shanghai Stock Exchange is the world's fastest growing, with the Shanghai Composite Index growing 130% in 2006.
• Industrial zones in Shanghai include Shanghai Hongqiao Economic and Technological Development Zone, Jinqiao Export Economic Processing Zone, Minhang Economic and Technological Development Zone, and Shanghai Caohejing High and New Technological Development Zone.

http://en.wikipedia.org/wiki/Shanghai#Economy

Shanghai economy in 2010:

• Shanghai has set a GDP growth rate target for the year of more than 8 percent, almost the same as 2009's economic development rate.
• The city's GDP growth was estimated to be more than 8 percent last year, a little lower than the average national level. Total retail sales of consumer goods rose by about 14 percent and growth of fixed assets investment was around 10 percent in 2009.
• The targeted rate was a suitable development speed for Shanghai, which was hit by the global financial crisis during its economic restructure transition.
• “Regulation and control in the real estate market will be improved to help it develop in a healthy and sustainable way. And 500,000 new jobs will be created to keep the unemployment rate around 4.5 percent.”
• Taking up only 0.06% of the country's land area, Shanghai now generates about 8.3% of China's gross industrial output value, 10% of its ports' cargo-throughput, 25% of the total value of the country's imports and exports and 12.5% of the total revenue of China.

http://www.travelchinaguide.com/cityguides/shanghai/economy.htm
http://english.peopledaily.com.cn/90001/90778/90862/6864381.html

Settlement/Real Estate in Shanghai:

• The 2000 census put the population of Shanghai Municipality at 16.738 million, including the migrant population, which made up 3.871 million. Since the 1990 census the total population had increased by 3.396 million, or 25.5%.
• By the end of 2004, Shanghai's population stood at 16.7022 million, according to China Statistics 2005. Of those, 1.469 million (8.8%) were in the age group of 0–14, 12.661 million (75.8%) between 15 and 64 and 2.572 million (15.4%) were older than 65.
• As of 2008, the population of long-term residents reached 18.88 million, including an officially registered permanent population of 13.71 million, and 4.79 million of registered long-term migrants from other provinces, many from Anhui, Jiangsu, and Zhejiang Provinces^.
• According to the Shanghai Municipal Statistics Bureau, there were 133,340 foreigners in Shanghai in 2007. Some foreign expatriates are staying in Shanghai as long-term settlers, In addition, there are a large number of people from Taiwan for business (estimates vary from 350,000 to 700,000).
• By 2009, the South Korean communities in Shanghai also increased to more than 70,000. The average life expectancy in 2006 was 80.97 years, 78.67 for men and 82.29 for women. Average annual disposable income of Shanghai residents, based on the first three quarters of 2009, is 21,871 RMB.
• Although total area of newly constructed homes sold doubled last year in Shanghai, supply is vastly inadequate to meet the demands of both investors looking to profit — wealthy Chinese and foreigners descending upon Shanghai — and the 1980s baby boom generation now of marrying age, and who would rather not move in with their parents.
• Over the last five years, Shanghai’s average property prices have doubled to a record RMB14,986 ($2,204) per square meter, according to Shanghai’s Uwin Real Estate Information Services, far outpacing the rise in middle class income.
• The average home in the city's center costs about RMB34,638 ($5,094) per square meter — or the equivalent of $473,216 for a 1,000 square foot condo.
• For about RMB1 million ($150,000), you can afford a yet-to-be-built 90 square meter (970 square feet), two-bedroom condo last June on the edge of Jiading District, the outermost suburb of Shanghai. Su’s parents ran the year-long home search process as well, going out nearly every weekend to see new and recently built condos. When they watched prices jump 20 percent in April alone, they panicked. They called friends and, through a back door connection, jumped the waiting line for a condo in this building.

http://www.globalpost.com/dispatch/china-and-its-neighbors/100302/china-economy-shanghai-real-estate-marriage

Labor, employment/unemployment

Unemployment rate: The percentage of people out of the total labor force who are currently out of work but are seeking work.

• By the end of 2008, Shanghai employed 9.4607 million people.
• Of the total, 1.4073 million, or 14.9%, were hired by the state enterprises and institutions
• 1.8888 million, or 20%, were employed by collectively-owned work units
• 1.3279 million, or 14%, worked in overseas-funded enterprises
• 2.9968 million, or 31.6%, worked at private businesses.
• The registered unemployment rate in the city’s urban areas stood at 4.2% in late 2008.
• Main exports are: Appliances, Building Materials, Cermaics, Chemicals, Garments/Shoes, Leather Products, Mechanical equipment, Pharmaceuticals, Platics, Rubber products, Textiles
• History of unemployment rate for Shanghai: 4.9% - 2003, 4.3% - 2007, 4.3% - 2009

http://www.shanghai.gov.cn/shanghai/node17256/node17432/node17435/userobject22ai19.html
http://www.shanghai.gov.cn/shanghai/node17256/node18151/userobject22ai30095.html

Just some research compiled on the city of Shanghai and it's current economical state, will need to try to look deeper at the employment situation as there wasn't much online on details.