On July 30, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the economic situation in the first half of the year and the economic work for the second half. The meeting proposed that economic work in the second half of the year will continue to be guided by the principle of “seeking progress while maintaining stability,” ensuring the completion of the main tasks of economic and social development for the whole year. It is worth noting that the meeting's phrasing of “promoting the steady and healthy development of the real estate market” did not mention regulation, which may express the senior leadership's new attitude toward the real estate market.
    According to China Construction Machinery Business Network, after a brief adjustment in the first quarter, the real estate market re-entered a prosperous operating range. In the first half of the year, the national supply of land for real estate was 82,400 hectares, an increase of 38.8% year-on-year, the highest in previous years, of which the supply of land for housing was 55,300 hectares, an increase of 36.9% year-on-year; from January to May, the funds in place for real estate development enterprises were 4.5 trillion yuan, an increase of 32.0% year-on-year, enterprises' enthusiasm for land acquisition rose, and they returned to first-tier cities and some second-tier cities, with the supply of land for real estate in key cities increasing by more than 30%, and the increase in the supply of land for housing in first-tier cities significantly higher than the national level.
    Under this situation, the Real Estate Manager Confidence Index also reached its highest value in three years at 60.85. Previously, the highest point of this index appeared in early 2011, reaching 60.2, after which the property market regulation policies mainly based on purchase restrictions were introduced, and the index continued to decline.
    On the other hand, the government has also frequently issued favorable policies on shantytown transformation. In the five years from 2008 to 2012, 12.6 million households in various types of shantytowns across the country started transformation, accounting for 40% of the 31 million units (households) of urban affordable housing projects started in the same period, and 7.5 million resettlement housing units for various types of shantytown transformation were basically completed. Since the new government took office, shantytown transformation has been listed as one of the key contents of urbanization construction.
    It is reported that in the next five years, another 10 million households in various types of shantytowns in cities and state-owned industrial and mining areas, forest areas, and reclamation areas will be transformed, of which 3.04 million households will be transformed in 2013. According to comprehensive estimates, this policy will drive investment of 2.4 trillion yuan in various fields and drive the development of more than 40 related industries such as construction, building materials (steel, cement, glass, etc.), and construction machinery.
    It is understood that local governments are even more enthusiastic and energetic about shantytown transformation. For example, Beijing proposed to invest 500 billion yuan within five years to improve the living conditions of residents in 230,000 households and 700,000 people in shantytowns; the total transformation volume of urban shantytowns in Chongqing's main urban area is 5.67 million square meters, involving 72,100 households.
    At present, the investment plans for the next five years of more than a dozen provinces that have already formulated shantytown transformation plans have exceeded one trillion yuan. According to the teleconference on national shantytown transformation work by six ministries and commissions, all localities will complete the compilation of shantytown transformation plans for 2013-2017 by the end of October, by which time the overall investment in shantytown transformation may reach about 4 trillion yuan.
    Because shantytown transformation can continuously form new economic growth points, thereby achieving multiple benefits, expanding domestic demand, and benefiting both the present and the long term, the process of shantytown transformation will certainly continue to deepen under the promotion of policies.
    Forty percent of construction machinery sales are related to real estate, and the impact of real estate on the construction machinery industry is obvious. Therefore, driven by the expected recovery of the real estate market in the second half of the year, the expectation of stabilization and rebound in the construction machinery industry may finally be realized.
    In addition to real estate, investment in railway construction and other fields will also see favorable conditions in the second half of the year. Sources said that given the current situation, the government will introduce some moderate stimulus policies in the second half of the year, mainly concentrated in the investment field, with railway construction and shantytown transformation as the focus. The main measures include shantytown transformation, railway investment, urban infrastructure construction (4G, energy conservation and environmental protection, rail transit), and expanding financing for real estate enterprises.
  With the split of the Ministry of Railways, the railway system has accelerated its full entry into marketization. Since last year, the former Ministry of Railways has delegated the leadership of intercity lines to local governments, stimulating a round of investment upsurge by local governments. In addition, 2013 is a crucial year in the “Twelfth Five-Year Plan” for railway construction. This year, not only may the mileage completed and opened to traffic exceed 6,000 kilometers, but a large number of key lines will also open to traffic. It is a key year for completing the “four horizontal and four vertical” network, so railway construction in the second half of the year is worth anticipating.
    On the other hand, from the perspective of the development trend of the construction machinery industry itself, after a long period of market downturn, construction machinery enterprises have begun to change their concepts, actively adjust their structure, transform their development mode, and pursue development quality. High-end equipment in various fields has been launched to the market one after another, leading enterprises' overseas mergers and acquisitions are in full swing, enterprise strength has been further strengthened, and the industry is showing a rational, steady, and sustainable development trend.
    Therefore, under the combined effect of internal and external favorable factors, it is expected that construction machinery market sales will resume growth in the second half of the year, and enterprise economic benefits will also recover steadily. (This article comes from the Internet)