Ghost buildings haunt Tianjin's 'Manhattan' project

The mainland's plan to build a replica Manhattan is taking shape against a backdrop of vacant office towers and unfinished hotels, underscoring the risks to a slowing economy from the investment boom.

The skyscraper-filled skyline of the Conch Bay district in the Tianjin has no metropolis' bustle up close, with dirt-covered glass doors and construction on some edifices halted.

The area's failure to attract tenants since the first building was finished in 2010 bodes ill across the Hai River for the separate Yujiapu development, which is modelled on New York's Manhattan.

"Investing here won't be better than throwing money into the water," said Zhang Zhihe, during a visit to the area from Hebei province. "There will be no way out - it will be very difficult to find the next buyer."

The deserted area underscores the fallout from a record credit-fuelled investment spree while sustaining growth and jobs. A Tianjin local government financing vehicle connected to the developments said revenue fell 68 per cent last year to an amount that was less than one-third of debt due this year.

"There will have to be a reckoning," said Stephen Green, the head of Greater China research at Standard Chartered.