1. Project topic: Effects of the economic crisis to the construction industry of Hong Kong. Project Supervisor: Y.L.Cheung YAN CHIT WAI Editor: YAN CHIT WAI Dept.: Civil Engineering Student ID: 990102736 Course No.:51301/3C2 Class No.: (18)

2. Analyst divide Into 4 parts: Part I - is base on property and new movement on construction Part II -is base on the relationship area on construction industry Part III - is base on the news around construction area. Part IV- briefly summary

3. Part I Property market, we can see that the price and rental (Residential, Office, Retail premises, Flatted factory) decrease and decrease each year from 1998 whether in public or private.

4. The reason can be caused by certain circumstance The government policy eg. 85,000 housing scheme The poor economic atmosphere. eg. oversea investment diminish The effects of 911. eg. 9.11 event The unemployed rate. eg. Confidence in Hong Kong

5. Relationship between industries The relation between property market, construction and banking: As we all know, property, construction must support by finance, so the banking is quite important and play an important role, however, if the downward whether in property or construction industry, the banking development would be crush down too. The relation between property market and stock market: The stock market in Hong Kong, there is 138 properties in total of 601, about 23% portion. And the market values of property together with construction companies that have 32.57% (research according to 1998 stock market of annul report). When the “bull market” occur, the companies would activate to investment and expand the business. On the contrary, the “bear” market occurs (now), the property and construction industry would become downward in the further six months at least.

6. Part II View on private sector of a large and famous construction firm Shui On company: - F amous in construction building in Hong Kong Affected by HKSAR housing policy. construction project become sharply decrease. Survival in the Market shift to mainland and run others business. Great competitor - Shanghai think more how Hong Kong could develop and exploit its.

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8. Benefits to Hong Kong Economic Multimedia and information applications centre Stimulate development of multimedia production industry Twelve thousand jobs after the project completed Four thousand jobs during construction A new tourist attraction Culture and Entertainment New opportunities for growth for the Hong Kong's broadcasting and film industry Improve quality and marketability of content to different territories

9. Part III News Discussion Infrastructure Railway projects – KCRC, MTRC Road Projects – expand Hong Kong road ’ s network Expansion of Information Technology – Cyberport Tourism Development - HK Disneyland project Port Development – logistic

10. $600 Billion set aside for infrastructure development Purpose: pushing ahead with large-scale projects and improving our business environment to take account of the changing economic landscape Not only will this investment help Hong Kong maintain its status as a regional transportation and business hub, it will generate many jobs embarking on major infrastructure links with Guangdong to strengthen economic co-operation

11. Report from the bank Almost all the new loans were for owner-occupied properties - showing people were buying flats to live in rather than for investment purposes property prices would stabilize - but would not rise significantly The unemployment rate is still high The ‘yen’ is falling and the global economy is still slow Prediction: It would be hard to imagine any big rise of property market before the middle of next year.

13. Part IV briefly summary Hong Kong possess a high standard of expertise Maintained a high investment value and opportunity Frequently cooperation with mainland in the future Many large Projects of infrastructure was planning and working now View on the future The civil works that would maintain a great demand and with a high standard in the world ----------------- END ------------------