Geng he, the financial author of Tencent, is from Hong Kong.
Wanda has sold mainland assets aggressively, raising concerns about the future of the property sector. InHenglong GroupAccording to Chen Qizong, chairman of the board, this is a reshuffle of commercial real estate in the mainland. "it is the inevitable result of a market economy, and it is no big deal."
On July 27, Chen Qizong was inHenglong GroupThe cold winter in the retail markets in the mainland and Hong Kong is slowly dissipating, but it will take several years for the improvement to be reflected in commercial real estate, according to the interim results meeting. He believes that in the long run, the retail market in the mainland still has 20 to 30 years of development opportunities, while opportunities for commercial real estate have always existed, and a short reshuffle of the industry is normal.
Over the past few yearsHenglong GroupActively expand commercial complex projects in the mainland. So far, the company has a total of eight commercial complex projects called Henglong Plaza in Shanghai, Shenyang, Jinan, Wuxi, Tianjin and Dalian.
The rents of commercial real estate in the mainland and Hong Kong areHenglong GroupThe main source of income. Six months ended June 2017Henglong GroupTotal income was HK $6.641 billion, the same as the same period last year, of which property rental income accounted for 62 per cent. During the period, net profit was HK $2.396 billion, up 34 per cent from a year earlier.
In additionHenglong GroupAt present, there are still two "Henglong Plaza" under development in Kunming and Wuhan.
Henglong GroupWhile bullish on the development prospects of commercial real estate in the mainland, another mainland commercial real estate leader, Wang Jianlin, recently sold 13 cultural travel cities and 76 hotels with a total value of 63.7 billion yuan to Rongchuang and Rongchuang respectively.R & F real estate.
Wang Jianlin's large-scale sale of assets attracted market attention. In this regard, Chen Qizong said that over the past few decades, many heavyweights in the Hong Kong real estate market are no longer known to the outside world, and reshuffling is an inevitable result of the market economy, while the Chinese market is very large, and one place can be transferred to another place if it is overheated. The situation in each region is different, and there are always opportunities.
He added that the models of Henglong and Wanda are different. Wanda has 100 or 200 malls across the country, and now it is slowly reducing the number, while Henglong starts from scratch and now has only eight projects, although the number is small, but the profits are very high.
"now I can say that the cold winter of the retail industry is over. First-tier cities in the mainland are recovering very well, and second-tier cities still need to wait. In the long run, China's economy will still be driven by retail. If there are no accidents, the consumer market in the mainland will slowly recover in the next few years. In the long run, our model is conducive to development in the mainland. " Chen Qizong said.
The first half of fiscal year 2017Henglong GroupIts property sales revenue was HK $2.523 billion, up 5 per cent year-on-year, and gross profit margin rose 18 per cent year-on-year to HK $1.642 billion. Due toHenglong GroupFocus on the luxury housing market, so the profit margin is higher than that of ordinary housing, reaching 65%.
With regard to the high property prices in Hong Kong, Chen Qizong said that from a historical point of view, property prices in June 1997 were the most unaffordable level for Hong Kong people, and they have now exceeded this level. He believes that property prices in Hong Kong have far exceeded the affordability of Hong Kong people, which will prompt the Hong Kong government to launch more land and let property prices go down in the long run.