Two cities that have served as economic pillars for China’s southern province of Guangdong appear to be losing steam relative to their peers, prompting calls for stronger action to revive businesses.
The simultaneous slowdown came as uncertainty grips the global supply chain and domestic demand fails to make up the shortfall, analysts said.
“Shenzhen is facing dual headwinds from weakening global demand and a local property downturn, particularly in the commercial real estate sector, which has dragged down both exports and investment,” said Peng Peng, executive chairman of the Guangdong Society of Reform, a think tank affiliated with the provincial government.
Shenzhen’s decline is particularly notable. According to city government statistics, fixed-asset investment dropped 10.9 per cent year-on-year and real estate development plunged 15.1 per cent, reflecting weakened investor confidence.
While the city’s hi-tech industries grew by over 35 per cent, its exports fell 7 per cent and total trade dipped by 1.1 per cent.