China’s economy recorded its slowest annual expansion in a quarter of a century in 2015, growing 6.9% compared to the year before to CNY67.67 trillion, largely in line with the government’s target of around 7%, the National Bureau of Statistics (NBS) announced. However, fourth-quarter growth, at 6.8%, was worse than expected. Gross domestic product (GDP) was CNY67.67 trillion last year, with the service sector accounting for 50.5%, the first time it had exceeded 50%. The economy still “ran within a reasonable range” last year, with its structure further optimized, upgrading accelerated, new growth drivers strengthened and people’s lives improved, NBS Director Wang Baoan told a press conference. “China, although slowing in growth, remained a global economic star performer,” said Ajay Dayal, Investment Director at Legg Mason. slowing, China still contributed more than 25% of global economic growth. The growth was led by the service sector, which gained 8.3% to CNY34.16 trillion. The manufacturing sector added 6% to CNY27.43 trillion. Agriculture rose 3.9% to CNY6.08 trillion. Industrial production rose 6.1%, weakening from the acceleration of 8.3% in 2014. Fixed-asset investment (FAI) added 10%, also less than the rise of 15.7% a year earlier, with investment in the property sector edging up just 1%. Retail sales growth moderated to 10.7%.

Textile producer Shandong Ruyi Group is believed to be in take-over talks with SMCP SAS, the owner of French fashion brands Sandro, Maje and Claudie Pierlot. Bloomberg said the clothing group could be worth more than USD1 billion. With more than 1,000 stores in 34 countries, SMCP is adding shops in Hong Kong and seeking opportunities to expand in the Chinese mainland, CEO Daniel Lalonde said last year. In the first half of 2015, it added 12 outlets in Asia. Sales in 2015 were up 32% on 2014, reaching €316 million and online sales doubled. KKR bought a 65% of SMCP from L Capital, a private equity firm backed by LVMH Moet Hennessy Louis Vuitton but is now seeking to sell its stake. Based in eastern China, Shandong Ruyi has annual sales of more than CNY30 billion. It has invested in clothing companies, including Tokyo-based Renown, which sells the Aquascutum and D’urban brands in Japan, the China Daily reports.

New home prices in China continued their upward momentum in December, although the recovery remains uneven. Month-on-month increases were recorded in 39 of the 70 cities covered, up from 33 in November, the National Bureau of Statistics (NBS) said. On a year-on-year basis, prices in the 70 cities rose an average of 7.7% in December from a year earlier. However, 49 cities saw a decline in prices compared with a year ago. Losses in most cities were offset by strong gains in the largest cities. Among first-tier cities, Shenzhen saw the biggest gain with a 3.2% increase over November and a 47.5% surge over a year earlier. Shanghai rose 2.1%, up 18.2% from a year ago. Beijing at 0.5% and Guangzhou at 0.7% saw more modest increases. Fueled by stimulus measures such as lower down-payment requirements, new home prices have been rising since May. Five interest rate cuts last year helped to bring mortgage rates to their lowest in five years. The divergence was also reflected in sales. Of the 50 cities monitored by the China Real Estate Index System, sales in first-tier cities surged 34.2% as measured by floor space in December over November, but in second-tier cities sales rose just 7.9%. Those in third-tier cities rose 10.6%. The continued drawing down of the housing inventory, along with the central government’s pledge to further cut the housing glut, has pushed expectations of further rises in prices and sales in 2016, the China Daily reports.

China’s luxury industry is still feeling the impact of the country’s economic slowdown and domestic consumers’ growing interest in shopping overseas. The industry contracted for the second consecutive year by 2% last year, with the total amount spent falling to CNY113 billion, according to Bain & Co. The decline was seen particularly in sales of menswear, watches and leather products, which were down by 12%, 10% and 5%. The anti-graft campaign, launched in 2013, combined with the effects of the economic slowdown and stock market volatility in the second and third quarters of last year, further propelled the market deceleration. The survey, which polled 1,447 Chinese consumers, found that the total amount they spent on luxury purchases overseas rose by 10% year-on-year in 2015. Japan was the most popular destination, with consumers’ luxury spending soaring by 251%. Consumption in South Korea and Europe rose by 33% and 31%. Cross-border and overseas websites took 12% of the Chinese spending on luxury goods last year.

Shanghai has launched a program to attract higher-end manufacturing companies to the city. The program will target “smart industrial companies” involved in robot-making, integrated circuit, 3D printing, intelligent equipment and health care equipment in the hope of strengthening Shanghai’s competitiveness in advanced manufacturing and accelerate the city’s opening-up process, said Shang Yuying, Chairwoman of the Shanghai Commission of Commerce.