Tuesday, July 22, 2014

Chinese real estate companies: the leaders of China?

In Chinese there are a few giant real estate companies or as I once read in some Chinese newspaper "Chinese real estate elites".
These companies are everywhere. They build everywhere: new buildings, hotels, hospitals, schools, stadium...

These companies don't limit themselves to real estate
As they grew these companies diversified their business: reaching out everywhere in the food industry, in education, health and abroad...

In Changsha two of these giants just established two huge complex: one is Wanda Plaza and one is Baoli.
These complex include appartment appartements buildings, hotel, commercial center.

Partnerships with famous brands

Quite often these giants establish partnership with famous brands: Marriot group for the hotel, Wall-Mart for the commercial center. This is a strong guarantee to make sure Chinese customers spend their money there!
Though they now try more and more to develop their own brand: such as Wanda hotel, Wanda shopping center...

Full support from the authorities
These giants are closely linked to the politics.
For instance, Wanda Plaza belongs to the nephew of president Zhang Zeming...
And they invest so much that the local authorities will do anything for them: give them any construction permit, build a tunnel for them, build a new bridge, build a new road, a subway station, expropriate... thus facilitating the access to the real estate complex. Of course there is always a "high risk" of bribes.

But remember China economic growth relies mainly on real estate!