State-owned conglomerates sustain construction activity in Shenzhen

Construction cranes remain a fixture of the Shenzhen skyline, though the names on the project boards are changing. While China’s private developers remain sidelined by a broader downturn in the property market, state-owned conglomerates like China Merchants Group and China Resources have assumed the role of the city’s primary builders. This structural shift is particularly visible in high-profile developments such as Marivista, a joint venture between these state entities.

The activity in Shenzhen represents a consolidation of the sector by companies with direct ties to Beijing. This ensures that major infrastructure and housing works continue even as private capital retreats. However, the concentration of these projects under state firms reflects the deepening challenges for independent players, who are struggling with liquidity and cooling investor sentiment. For the city's economic planners, the dominance of state conglomerates provides a measure of predictability in an otherwise volatile sector.