Housing enterprises under the construction of “Belt and Road”: Promoting China's advantageous industries to “carry out the sea”

This article was first published on the WeChat public account: China Real Estate News. The content of the article belongs to the author's personal opinion and does not represent the position of Hexun.com. Investors should act accordingly, at their own risk.

Guide

According to McKinsey's forecast, by 2050, the area along the Belt and Road Initiative will contribute about 80% of global GDP growth.

Zhongfang Daily reporter Zeng Dongmei reported in Guangzhou

From May 14th to 15th, the highly anticipated “One Belt, One Road” International Cooperation Summit was held in China. This is the highest-profile international conference held by China since the “Belt and Road” initiative. According to Credit Suisse's report, the “Belt and Road” is expected to provide more than US$500 billion in investments to more than 60 countries in the next five years. According to McKinsey's forecast, by 2050, the area along the Belt and Road Initiative will contribute about 80% of global GDP growth.

In the upsurge of production capacity, the Chinese housing enterprises have been flashing, and they have carried out unprecedented exploration and practice in the vast overseas market. If the early housing companies go out to sea just to open up another housing consumer market, then now they have done far beyond the real estate business. Country Garden Forest City started construction for two years, which led to Zoomlion 01071, about 100 Chinese companies including Shandong Guohong, China Construction Eighth Bureau, Shagang and Yonggang. The company’s president Mo Bin said that in the new one. In the process of “going out to the sea” by Chinese enterprises, private enterprises should be the promoters of “going out” to promote China’s advantageous industries.

Wang Jianlin, the chairman of Wanda Group, believes that as an “in the Belt and Road”, entrepreneurs must see opportunities and be different opportunities. In his view, on the “Belt and Road”, there are only four or five countries with a population of more than 100 million, which can create tens of billions of yuan of infrastructure construction opportunities. In India, Wanda has changed its investors who have succeeded in business models, transformed into infrastructure and operators in New Town.

Following the three modes of “capital output, technology output, and industrial output”, Greenland Holdings 600606 has further established the comprehensive competitive advantage of “Flat Construction + Infrastructure” overseas, and plans to copy the “Greenland Edition Smart Town” to overseas markets. .

"On the scale, China's housing enterprises are already in the forefront of the world. They have the ability and strength to improve their voice in the global market. It is undoubtedly a once-in-a-lifetime opportunity to participate in the construction of the 'Belt and Road'." One expert said that any global perspective The housing companies will not miss this campaign that will boost the world’s next wave of economic growth.

Not just selling a house

Even though China's real estate market is hailed as the largest and most promising market, the ceiling is getting closer and closer, and the growth of large-scale housing companies can only come from the reshuffle of the industry. The moment of choice has already arrived. Some people choose to continue to cultivate the local stocks, and some people are heading for a vast overseas increase. The earliest developers who have developed overseas are really only developers, including Greenland, Country Garden, Agile, R&F, Vanke, Poly, Wanda, etc., and sell residential projects overseas to locals or Chinese.

But the current development model has changed a lot, and some of them have gone out of the comfort zone and tried to do something bigger. In Malaysia, Yang Guoqiang’s dream city model has become a reality. With the “One Belt, One Road” initiative and strong support from countries along the route, Country Garden Forest City, a project covering nearly 20 square kilometers, has been launched in Malaysia's special economic zone. This project has long since deviated from the definition of traditional residential market, and has developed towards the “International Capacity Cooperation New City”, with tax-free zones and independent customs, as well as a series of preferential policies for the industry. At the end of 2016, Forest City signed cooperation agreements with 36 well-known Chinese and foreign companies including Huawei, Cisco, Accenture and Deutsche Bank Asia Pacific Headquarters, covering smart cities, capacity cooperation and pillar industries. Malaysian Prime Minister Najib predicted that by 2035, the forest city will create 220,000 jobs for Malaysia, especially in the financial and e-commerce sectors.

On May 9, it was reported that the Malaysian authorities are negotiating with Wanda Group to develop a large-scale real estate project in Malaysia, “Dama City”. Malaysian Prime Minister Najib hopes to attend the “One Belt, One Road” international cooperation peak in Beijing from May 14th to 15th. During the forum, the contract was signed with Wanda. It is understood that "Dama City" is a key development area in Malaysia and an important carrier for its country's future development strategy. It will become the most important transportation hub in Kuala Lumpur and an international economy integrating finance, commerce, culture, tourism and high-end residences. The center, after completion, is the second largest in the world for the same type of project. Previously, Greenland Holdings has signed a memorandum of cooperation with Malaysia to participate in the investment development and infrastructure construction of the project. Greenland believes that this move means that after the formation of the three modes of “capital output, technology output, and industrial output” in overseas markets, the company is further establishing the comprehensive competitive advantage of “house construction + infrastructure”.

Wanda’s experiments in India have made significant progress. Next to the city of Delhi, Wanda won a new district development project covering an area of ​​30 square kilometers, named Wanda New City. According to Wang Jianlin, the infrastructure investment of this project is two to three billion US dollars. The investment in the entire industrial new city is over 10 billion US dollars. It is the largest contracted and binding project in India for many years. “This project is from electricity, water supply, tap water, sewage treatment, communication, etc., which is equivalent to ourselves starting from scratch.” He said that Wanda has changed its existing successful business model in China, not as a supplier of retail terminals. Nor is it a five-star hotel. In India, Wanda has become an infrastructure investor.

Deep participation in world economic activities

Guan Qingyou, vice president of Minsheng Securities, pointed out in his recent report that the “Belt and Road” runs through the Asia-Europe continent. In 2015, there were 64 countries along the “Belt and Road” with a population of about 4.4 billion and a GDP of 23 trillion US dollars, respectively. 63%, 29%, the total trade volume only accounts for a quarter of the world. Most of the countries along the line are countries with economic strength but rapid economic growth. According to McKinsey's forecast, by 2050, the area along the “Belt and Road” will contribute about 80% of the global GDP increase, and the development potential is huge.

At present, more than 100 countries and international organizations have participated in the construction of the “Belt and Road”, involving countries extending to Western Europe to the United Kingdom, France, Germany, etc.; to South Africa to Africa; to Australia and South America countries and regions.

When talking about why he participated in the “Belt and Road”, Mo Bin once told the media that there are a lot of good opportunities for win-win or even win-win among dozens of developing countries along the “Belt and Road”. Private enterprises must closely follow the national policy and take the initiative to dock the "Belt and Road" initiative, which will not only bring good products from China, but also allow Chinese companies to export and learn advanced technologies and experiences from abroad. According to reports, at present, Country Garden's overseas expansion has spread throughout Asia, Oceania, the Americas, etc., including Malaysia, Indonesia, Australia, India, the United Kingdom, the United States, Vietnam, Laos, Thailand and other countries.

Poly Group is the pioneer of the “Belt and Road” initiative. Its chairman Xu Niansha bluntly said that with the implementation of “One Belt, One Road”, regional innovation will be triggered by different countries and regions, including regional development model, industrial strategy choice, and economic and technological path. , inter-regional cooperation methods, etc. While overcoming the “unacceptable” and adapting to different national and regional environments, Chinese companies have learned from the experience of overseas successful enterprises to promote the reform and innovation of enterprise development models, industrial strategies, technological paths and business models. And innovation all contain unlimited opportunities.

Wanda sees huge business opportunities for economic growth along the route. "We analyze these major countries on the 'Belt and Road', not including all countries, and only four or five countries with a population of more than 100 million can create tens of billions of yuan of infrastructure construction opportunities. The infrastructure is not completely The underground concealed project also includes various aspects, such as transportation, communication, urban new district, etc. There are many opportunities.” Wang Jianlin said in a meeting that as an entrepreneur, you must see opportunities on the “Belt and Road”. Be sure to see a different opportunity.

Of course, the huge differences in the political, economic, cultural, and legal systems of different countries are also the challenges that housing companies must face when they go to sea. According to Wang Jianlin's original idea, with reference to Wanda's mature business model in China, India can invest at least 100 Wanda Plazas, but the result is that none of the projects have been implemented in five years. A listed real estate company told the China Real Estate News reporter that when the Chinese housing enterprises invested the most in Malaysia, the company also wanted to share a piece of the past, but after the investigation, it was decided to stay in the country. "The risk is too great." . Another central enterprise insists on only developing countries in Europe and the United States. "The politics and economy of developed countries are more stable, and the unpredictability is lower than that of developing countries. Our primary guarantee is asset security. After all, the development cycle of real estate is long, unlike manufacturing. This year, I can't do it next year." However, the company also acknowledges that there are incalculable development opportunities in developing countries. Enterprises that have the courage to enter and risk control can indeed absorb the growth nutrients that cannot be provided in the country, and increase their participation in the economic construction of developing countries. The competitiveness of the market in the world.