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The Arcadia, TianjinBy end-2006, 108 of the Fortune 500 companies, such asAir France, KLM Royal Dutch Airlines, and ABN AMRO haveset up operations in Chengdu. The city’s position as China’swestern economic hub will attract more foreign investmentand is poised to boost the city’s economy further.New economic growth engine for TianjinTianjin achieved a robust 14.4% economic growth in2006, boosted by the automobile, telecommunicationsand infrastructure sectors. Exports rose 22.3% andFDI increased 14.1%. A total of 121 of the Fortune 500companies has invested in Tianjin by end-2006.The Bin Hai New Region, accounting for 51.4% of thecity’s GDP, will continue to be the city’s growth engine.The city will become a regional logistics hub when thedeep water channel in the Tianjin Port is completed.The development of Huan Bo Hai Economic Rim willalso enhance Tianjin’s position as the economic centrein Northern China.Continued sterling economic growth in WuxiWuxi continued to record a sterling GDP growth of 15.3%in 2006, driven by the strong manufacturing industryand tourism sector. Exports surged 37.9% and FDIrose 37.1%. Consumption increased 16.4% while percapita disposable income in urban and rural areas rose13.6% and 10.9% respectively. Wuxi’s economy willremain robust, fuelled by foreign investment and surgingdomestic consumption.Strong economic performance in Hong KongHong Kong’s economy registered a better-than-expectedgrowth of 6.8% in 2006, fuelled by strong investment andprivate consumption. Overall investment grew 8%, thehighest since 2000. The unemployment rate fell to a six-yearlow of 4.4% and inflation was kept at 2%.In 2007, the government’s new infrastructure expenditurewill improve employment. Meanwhile, the tax relief andone-off rebate measures will also boost privateconsumption. With closer economic ties to mainland China,Hong Kong’s economy will grow further in the future.Property marketPositive outlook despite cooling measuresThe implementation of anti-speculation measures since2005, including controls in credit and land supply, levy oftaxes on property sales and capital gains, and restrictions onforeign buying, have curtailed overheating real estateinvestment. However, the property market still achievedgood growth, with primary housing price increase of 6.3%in 70 large and medium-sized cities in 2006.Operations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006129