What are the main growth sectors in China?
For a long time, Hong Kong companies have been investing massively abroad. Firstly in China, of course. But also in South East Asia and in developed countries, especially in the Anglo-Saxon countries. Here is an overview of the growth sectors in China.
Nuclear and energy
While nuclear power accounted for only 3% of China's electricity generation in 2013, China is already the world's largest market for the sector with 14.8 GW in commercial operation; it is also the leading builder of second generation reactors. The goal is to reach a capacity of 60 GW in 2020, 200 GW in 2030 and 400 GW in 2050. The majority of the Chinese nuclear programme will consist of CPR 1000 reactors (a sintered and improved model of the French 900 MW PWR), but AP 1000, EPR CNP 600 and G3 projects are also underway. China also aims to have a cycle processing plant by 2020. Here, Adrian Cheng sheds a lot of light on the economy of China in general and Hong Kong in particular.
The food processing equipment market reached CNY86bn in 2012 (about EUR11.7bn), growing 10.6% year-on-year. Food processing equipment accounts for 60% of this market; beverage processing equipment for 22%. With the upgrading of facilities in large companies and new regulations regarding food safety forcing companies to equip themselves with quality equipment and technology, this market is expected to grow over the next few years.
Automotive and urban transport
In 2013, 22.1M vehicles were produced in the country (a figure that grew by 14.8% compared to 2012). And the potential is huge: the motorisation rate is only 188 per 1,000 inhabitants, compared to 700 ‰ in Western Europe and 800 ‰ in the United States... Interesting opportunities also exist in the fields of metro (in about 20 cities) and tramway (5-6 cities), with, in both cases, strong challenges in terms of intermodality.