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Interview ︱ Tian Beijun lamented that he became a "lucky boy" in the real estate industry and was scolded for hegemony after making money for the government

2021-10-10T23:36:54.115Z


In the past ten years, Hong Kong citizens must have heard the four words "real estate hegemony". The titles of best-selling books and slogans of politicians have all accused this group of wealthy businessmen who have mastered Hong Kong's social resources for more than half a century. Especially Hong Kong Housing


In the past ten years, Hong Kong citizens must have heard the four words "real estate hegemony". The titles of best-selling books and slogans of politicians have all accused this group of wealthy businessmen who have mastered Hong Kong's social resources for more than half a century.

In particular, the housing problem in Hong Kong is extremely serious. Real estate developers have become the target of criticism from some of the population. After the central government has eliminated Hong Kong's political problems through the National Security Law and "improving the electoral system," the next step must be to deal with the deep-seated conflicts in Hong Kong's housing.

Earlier, foreign media reported that Beijing requested local real estate developers to help solve the housing problem in Hong Kong, indicating that it would no longer tolerate "monopoly behavior."


Tian Beijun, Honorary Chairman of the Liberal Party and Chairman of the Wan Tai Group, said in an exclusive interview with "Hong Kong 01" that the phenomenon of "monopoly" Hong Kong social resources in the real estate sector has its historical background, but the phenomenon of excessive property prices cannot be entirely blamed. For real estate developers, government policies have also contributed to it.

He hopes that in the future, the government can increase the supply of public and private housing by speeding up the approval process and developing the borders of country parks.


As a representative of the previous generation of business circles, Tian Beijun stated that he did not agree with the argument of "real estate hegemony," and believed that this was just a slogan for some politicians to gain attention.

He quoted some big real estate business friends as saying that the real estate industry has contributed to society and increased government revenue for many years, just like the government's "lucky boy", but it was criticized as "hegemony" and felt unfair.


Pointing to the people of Hong Kong also benefits: Are all investments overseas?

"Real estate hegemony? Did you make it?" This was Tian Beijun's first reaction when asked about the four characters "real estate hegemony."

In the past few decades, Hong Kong people's clothing, food, housing and transportation have been inseparable from real estate developers.

The high prices of private housing are of course not a problem. Even many large brands and public utilities closely related to daily consumption, such as PARKnSHOP, KMB, and Gas Company, are related to traditional real estate developers.

According to Tian Beijun’s analysis, this phenomenon has its historical background: "Da Masha" began investing in real estate in Hong Kong in the 1970s. After making money, "funds were gone." The government was limited in land sales, so it invested in others. Companies that own land assets, such as the acquisition of KMB by SHKP, are largely because KMB owns the bus station and depot land. "Some industries make money, and businessmen invest in capital, and the people of Hong Kong will also benefit from the development? If even this If you have to say it is not correct, it is to criticize for the sake of criticism. Should you get all the overseas investment if you have money?"

The book "Real Estate Hegemony" tells how big real estate developers control Hong Kong's social and economic lifeline.

The picture shows the Chinese version of the book "Real Estate Hegemony".

(Profile picture)

Government's land sales policy and administrative procedures have caused property prices to rise and housing shortages

Tian Beijun quoted some people in the real estate industry who did not want to be named as saying that the phenomenon of excessively high property prices actually stems from the government's land sales policy to a large extent. If you want the property price to be cheaper and the people can afford it, then the land price should be cheaper first, right? You can only sell when the price is reached, and the speculation becomes higher. How can the built property be cheaper? Who is the calculation method for the reserve price? Formulate? Government officials."

Furthermore, Tian Beijun pointed out that Hong Kong has a shortage of construction workers and has not brought in foreign workers. As a result, it has robbed high salaries and even the overall construction cost. Together with its own land price, the developer’s profit margins are no longer large; the government’s administrative procedures for approving plans are too slow. After enrolling, you have to wait at least two months for each procedure. "Sometimes things that can be processed in 10 days have to be delayed for two months, because if it is too fast, people will suspect that there is any interest. In Hong Kong 6 It’s pretty fast to complete a building every year, but it can be completed in two years in the Mainland. I really don’t understand why it’s so complicated.”

Therefore, Tian Beijun believes that the government’s "land not found" is just the appearance, and more importantly, the government "how to deal with the existing land." From this perspective, he believes that real estate developers can cooperate more with the government to release more agricultural land in the New Territories. The dominant power is in the hands of the government: "Will the government think about it. I will take some of your farmland (the real estate developer) and let you build a building on other farmland in exchange for it? At present, the price of the land (change the purpose of building a building) is at least a few thousand. In addition to the original price of more than 1,000 yuan per square foot of agricultural land, it is more expensive to buy a new piece of land at any time. Then how can you attract real estate developers to release agricultural land to build buildings?" Tian Beijun lamented that the government is often afraid of being accused. "Collusion between government and businessmen" often dared not benefit real estate developers: "If this mantra is not resolved in one day, it can't be done in one day."

The land price paid by Hong Kong people will eventually fall into the hands of the government

At the time of the interview, the real estate industry was in the spotlight of public opinion.

Reuters quoted news as saying that at a closed-door meeting this year, central officials conveyed a message to Hong Kong developers, demanding that resources and influence be used to support Beijing and help solve the housing shortage in Hong Kong; there are even reports of central leaders’ dissatisfaction. The real estate sector influences the governance of the SAR.

The Real Estate Construction Chamber of Commerce must convene a special meeting to deal with this.

Tian Beijun pointed out that Hong Kong is a capitalist society, and businessmen decide their business strategies based on profits. This is a normal move in itself: "The Basic Law states that the central government also agrees: The "two systems" of "one country, two systems" means that Hong Kong implements capital. The most difference between capitalism and socialism is that capital focuses on "making money," while socialism focuses on "average." Of course, capitalism does not necessarily mean unfairness. The government can still charge merchants through taxes and land sales. Money will be spent on ordinary citizens."

He also believes that Hong Kong businessmen have always valued social responsibility: "Many large real estate developers have their own charitable funds, not using the money of listed companies, but their families. It is not fair to say that they are totally greedy for money and heavy profits. In addition, land prices and profits tax account for more than half of the annual income of the Hong Kong government. "Many of them come from real estate developers paying taxes, paying land prices, and bidding for land purchases. If you don't believe you can read the annual report for yourself, they are all listed companies. So (real estate developers) are like being the "lucky boy" of the government, but it is clear that the money paid by the public is at most in the hands of the government. Can the government use this money on the grassroots? Is the government doing it all the time? Not coming."

Because of this, Tian Beijun’s denunciation of "real estate hegemony" is inconsistent with the facts. It is more often just a political slogan: "In the past, there were so many pan-democratic legislators in the Legislative Council, "Real estate hegemony, collusion between government and businessmen, and conveying benefits." These twelve words It’s that simple, can you tell if your Chinese level is not that good? Sing it and have citizens support you, vote for you, and become a member of Parliament. This is purely a slogan to please the grassroots. In fact, if you look at the annual report, (real estate business) really Does it make so much? Isn’t the biggest expenditure not to buy land from the government and pay for it?"

Agree with Liang Zhenying's idea of ​​developing the borders of country parks

Regarding specific suggestions, Tian Beijun pointed out that to solve the housing problem of the public, private housing is not the focus, but to straighten out the supply of public housing.

As for the source of land, Liang Zhenying, vice chairman of the National Committee of the Chinese People's Political Consultative Conference, has repeatedly advocated the development of the border areas of country parks. Tian Beijun believes that this proposal is worthy of support. There is no need to explain the law, just issue an administrative order or slightly amend the "Urban Planning Ordinance" to directly cut trees and build houses."

He pointed out that the most convenient thing about this approach is that without the consent of the real estate developer, it can be completed directly in the border areas, and then optimizing the transportation facilities. At present, there is not enough sand for reclamation in all of China. I really don’t know where you (Lam Cheng) are going to buy sand. After filling it, it’s already "skylight." On the contrary, there are a lot of country park land in the east of the New Territories and the southeast of Hong Kong Island. They are all connected to new towns, and they have a certain transportation infrastructure." He asked again: "Is it important for people to live in houses or to live in a large forest?"

Tian Beijun stated clearly that although he had been removed from the CPPCC National Committee for suggesting that Liang Zhenying should consider resigning, he was "repaying one bill". Liang Zhenying's proposal for the development of country parks, he thought was quite reasonable.

In reality, Tian Beijun pointed out that in the past Legislative Council and the overall political atmosphere, the opposition had an advantage in public opinion, and the opposition voices of environmental protection groups were easily amplified. However, under the National Security Law and the new electoral system, the opposition voices are no longer a climate. The government has no difficulty in handling the development of the borders of country parks: "It is undeniable that (the new electoral system) has been reduced from the perspective of citizens’ democratic participation, but in exchange for a "high degree of executive leadership." If you do, the Legislative Council will definitely pass. So if the government is not doing well, it will not be able to deny it in the future."

▼Hengda Group Crisis▼


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Don't worry about the central government's remediation of Hong Kong real estate developers: Chinese-funded groups are all themselves

Tian Beijun added that the so-called central government's "remediation" of Hong Kong real estate developers has been speculation from beginning to end: "My friends in the real estate industry and I did not believe that this statement was true from beginning to end, nor did the central government intend to target Hong Kong. Real estate developers, so don’t be afraid.”

He laughed and said that regarding the status of Hong Kong real estate developers, there was a popular saying in the market that mainland enterprises have been rushing to grab land in Hong Kong in the past few years as part of the "replacement project." Weakened the latter's power in the Hong Kong market and replaced it by Chinese real estate stocks.

Tian Beijun pointed out that, first of all, he did not agree with this research and judgment. Moreover, the mainland Chinese real estate developers themselves are "an ant" and have extremely high debts. I believe they will no longer be able to significantly expand their influence in Hong Kong. The most obvious example is naturally the recent outbreak of Evergrande Group. The payment crisis.

Tian Beijun mentioned that in August last year, in order to strengthen the monitoring of domestic real estate financing, the mainland government introduced the "three red lines" deleveraging policy. The asset-liability ratio should not exceed 70% and the net debt ratio should not exceed 1%. Hundred. The short-term debt ratio of cash is not less than double to prevent the real estate bubble from bursting. "I can tell you with confidence that most real estate companies in Hong Kong will not have a red line." He also pointed out that it happened recently. The incident made him feel that there is a slight opportunity for Sino-U.S. relations. However, the economic environment in Europe and the United States has not improved, interest can not be raised, Hong Kong's banking system is stable, and the opportunity of the Qianhai Cooperation Zone is now for Hong Kong’s business environment. Full of confidence.

Central pressure?

Shi Yongqing: The real estate developers are not party members. The rules of the game list the basic law "no change" policy address | Land Development Council: Fully cooperate with the government to respond to the demand for land and housing.

Lam Cheng: In recent years they are "more willing" to cooperate with the government

01News

Source: hk1

All news articles on 2021-10-10

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