Construction sector drops 30 percent

Image via WikipediaThe slowdown in the construction industry now also has a figure,reports the Australian daily The Age. According to China's central bank the People's Bank of China, loans to the construction industry have dropped 30 percent in the first six months of 2008 compared to the same period in 2007.

Nor have construction companies been able to attract funds from the Shanghai sharemarket, which had fallen more than 70% since November before regulatory intervention last week.
[The financial]Caijing Magazine reports that real estate sales volumes have plunged 50% this year in key cities including Shanghai, Shenzhen, Wuhan and Xiamen.

The drop is expected to lower the proces for energy, ore and other commodities, the Australians fear. Earlier we reported the real estate and local authorities have seen also a severe downturn.

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