China’s biggest contractor piles on new contracts but rate of growth slows

China’s biggest construction contractor China State Construction Engineering Corporation (CSCEC) saw a jump in new construction contracts for the year to April 2023, as compared to 2022.

But the rate at which it is adding new deals is starting to slow as compared to earlier in the year.

CSCEC reported an 11.6% rise in construction contracts over January to April 2023, as compared to the same period a year before.

The total value of new construction contracts was CNY 1,166.6 billion (US$164.5 billion).

In its previous trading update, issued at the end of April, CSCEC reported a 16.4% year-on-year increase in new construction contracts for January to March 2023. In the update prior to that, it reported that new construction contracts jumped 27.3% year on year, for the January-February 2023 period.

The figures suggest that after an explosion of new work following the end of China’s zero-covid policy in December 2022, the growth rate in new construction contracts is starting to normalise.

Meanwhile, housing construction contracts increased 11.6% year on year for the January to April 2023 period, worth a total of CNY 879.1 billion (US$123.9 billion).

Infrastructure construction contracts were up 11.4% over the period, with a total value of CNY 281.6 billion (US$39.7 billion).

And new survey and design services contracts rose 33%, with the total of new contracts signed worth CNY 5.9 billion (US$830 million).

The bulk of new construction contracts (worth a total value of CNY 1,132.6 billion or US$159.7 billion) were in the domestic construction market.

New overseas construction contracts signed over the period were worth CNY 34 billion (US4.8 billion).