Chapter 9 Chapter 8 A Shoutout to Developers

It can be said that Ren Zhiqiang is the best spokesperson for the developer, because what he says is always from the developer's point of view, which is his natural role.Therefore, we always see that Ren Zhiqiang defends developers on various occasions, citing figures, presenting facts, and reasoning, trying to analyze and resolve the accusations against developers from the outside world one by one, although this is impossible. But as long as we listen carefully to Ren Zhiqiang's words, ask ourselves, are we looking at the real estate industry and developers with colored glasses? The poor cannot afford houses, and the developer has no responsibility. This is the responsibility of the government. Don't pin the shit on the developer.We have three major contradictions now, medical care, education and housing. The implementation of free education in the education issue is the government's business, not the school's business.Regarding education, it can be said that as long as the government invests money, nothing will happen.On the housing issue, how much money the government has taken from the land, why not use part of the money to solve the housing problem of the poor, why the poor buy a house, should pull the poor out, let the government spend money to solve the housing problem of the poor, all The world is like this.

This year our government did it, but the government didn’t realize it. It’s just that our government has little money and hasn’t solved the housing problem.In other words, the government has taken a lot of money to solve the housing problem in history, and now the poor do not really have no houses to live in.Wasn't the government paid for the welfare housing distribution in the past?This is the same meaning as the social security system established by developed countries, but the government has done a little less after 1998. Do the poor really have no houses?You have calculated the square footage of the poor in Nanjing. The poorest 30% of the people in Nanjing may have a house size larger than that in Beijing. Please use the data to speak.

The reason for the high housing prices, although there are different public opinions that confuse people's sight, but I think it is mainly due to the strong desire of real estate developers to make profits. This is firstly manifested in the rapid growth of the real estate tycoons.In the "Forbes" rich list, in 2001, 29 people were mainly engaged in real estate, in 2003, the number of real estate increased to 35, and in 2004, it increased to 45. In just a few years, so many billionaires have been born. Can you still say that the profit of real estate is not high? Secondly, it is reflected in the growth rate of real estate interest rates.The average profit rate of global real estate is 5%, while the profit rate of real estate in my country is above 30% every year.Taking Shanghai as an example, the profit rate of real estate enterprises' own funds was 38.12% in 2001, 86.36% in 2002, and 74.24% in 2003.This profit rate is more than 20 times the profit rate of social funds in the same period.

These examples are enough to show that the profit ratio of real estate in my country is relatively high at this stage.Under such circumstances, the government has issued some intervention policies on real estate to enhance the sense of responsibility of real estate developers, which is not only the need to make the real estate industry move towards standardized operation, but also the key to make the real estate industry develop healthier. The problem of responsibility for high house prices has always been a long-standing problem.Before, everyone always thought it was due to the greed of developers.Nowadays, more and more people gradually understand that the responsibility is not entirely on the developers, and the government should also bear corresponding responsibilities.The housing of the poor or low- and middle-income people has not been well guaranteed, and the board can only be more slapped on the government.

Education and healthcare are similar issues.This is especially true for education, especially primary and secondary education, which has long been compulsory internationally.We are still relying on Project Hope, and even Project Hope is still corrupt.Who is responsible? Therefore, what Ren Zhiqiang said was the truth. However, it would be wrong to say that developers have no responsibility at all.As the critic said, when the profit rate of an industry is more than 20 times the average profit rate of the society, if there is no huge profit, how can people believe it?This is also true. We are state-owned entrepreneurs and state-owned capital. We can do whatever the government tells us to do, and we will not do real estate if we are not allowed to do it.We are just servant girls, and the government has the final say.

We have to undertake a large number of public works that should have been borne by the state and the government, but we make up for these public works with other things in the enterprise. Many people say that state-owned enterprises take advantage of the government, but in fact there are many that we have no way to tell Everyone invests in public works. In fact, Ren Zhiqiang has also seen how a master treats his maid.Why does a "servant" who dares to break ground on Tai Sui's head every time still get good land?Naturally, Ren Zhiqiang also has his own reasons, because the country values ​​the taxes and profits he creates.So Ren Zhiqiang also dared to say in public that no matter what he said, the government would not dare to demote him, because he could create wealth for the government.

Perhaps Mr. Ren is right, and perhaps there is such a delicate relationship between the government and enterprises, but what I want to say is that no matter what their relationship is, as a national enterprise, it is definitely not a good idea to refuse to undertake social responsibilities. enterprise.As the "maid" in charge of the keys, she should assist the "master" in managing and governing the country well. It may be reasonable for the government to rely on the developer to a certain extent, and the government may also be in a predicament, but the developer, the "servant", was accused by the Ministry of Finance of deceiving the "master", and the people are very concerned about the housing price. Gao Qi complained, it seems that we can only wait and see how the "servant" behaves in front of the "master", otherwise, the lesson has to be taught.

Ren Zhiqiang was talking about the relationship between Huayuan and the government. Now Huayuan is a state-owned enterprise under the Xicheng District of Beijing. Therefore, he is right to say that he is a maid of the government, because there are mothers-in-law and housekeepers on the board, and they have to report to the government for approval when they do big things. Listen carefully to instructions.He said that a lot of money invested in public works cannot be said, which is also helpless, and state-owned enterprises have to listen to the government. However, there is nothing wrong with criticizing his articles.Since you are the servant girl of the government, you should listen to the government instead of always blaming the government.Ren Zhiqiang, on the other hand, always blames the government. From the central government to local governments, from the central bank to the Ministry of Land and Resources, he scolds almost all departments that issue policies related to real estate. How can there be such a "maid"?Isn't this breaking ground on Tai Sui's head?

However, if you take a closer look, you can find that there is one government that does not scold Ren Zhiqiang, that is, the Xicheng District Government that directly manages him, and the State-owned Assets Supervision and Administration Commission, especially the Beijing Municipal SASAC, never scolds him.Of course, some people may say that this is also because Ren Zhiqiang has no chance to scold him. After Huayuan’s 2009 annual report was released, my annual salary in a listed company became a social news, so I had to write a blog specifically for this, and posted it on the Internet to tell the society: In 1996, my annual salary exceeded 7 million yuan , and published it publicly in the newspaper, and after more than 10 years, my annual salary has not increased.

I showed this "imperial decree" to many journalists who came to my office for interviews, but I didn't show them the final figures, but the public and journalists always care about figures.My actual salary is about one-tenth of the published annual salary, but I will not publish the specific figure according to the requirements of the State-owned Assets Supervision and Administration Commission. Anyway, it is not as high as my lecture fee. A group of confused people made a stupid leaderboard, but they didn't know that the annual salary announced in the announcement consists of two parts: one is the annual salary approved by the board of directors; the other is the year's reward.Rewards are divided into cash part and other forms such as equity incentives, which should be determined according to the system of each company.

For example, Vanke implements equity incentives. If the equity incentives are calculated, Wang Shi's income is about 100 million yuan, which is more than 10 times mine.However, Vanke’s equity incentive has other conditions. In 2008, Vanke failed to achieve the promised performance, and in 2009, it did not complete the promised performance, so the equity incentive expired and had to be refunded.But it does not mean that there is no such thing. If Vanke fulfills the promised conditions, the situation will be completely different.Other companies have a similar situation, and if you can't complete the task, you won't get the reward. Isn't this a matter of course? Huayuan Real Estate implements the incentive method of withdrawing cash rewards based on the rate of return on net assets. After completion, it must be withdrawn in proportion, and if it is not completed, it will not get it! Once again, my final income will still be determined by the SASAC assessment! Ren Zhiqiang's annual income is now seen by everyone through the stock market: 7.74 million.In 2008, he ranked first among CEOs of listed real estate companies, and his (public) income was higher than that of any previous year in this industry. As we all know, according to the government and real estate developers themselves, 2008 was the most difficult year for the real estate industry in 10 years.But in this year, Ren Zhiqiang got the highest income in the history of this industry.There are only three possibilities for this: One, from the government to the developers, everyone is lying. Far from being difficult for the real estate industry in 2008, it was the best year in history. Second, the first one is not true, but Ren Zhiqiang's Huayuan Group, like our country's national economy, is thriving and unique in the face of global difficulties, creating the best period in the history of its own enterprise. Third, if the first two are not true, it can only show that Ren Zhiqiang is an unscrupulous business leader. When both the industry and the company are in trouble, when his employees can’t even get their wages, he pays himself a history. The highest annual salary in the industry. Ren Zhiqiang knows which one of the above is the highest annual salary in history, and he is welcome to come out and explain.After all, he is also a public figure, and he has always acted bravely and nakedly. This time, he might as well be brave to himself and run naked. Let me talk about Ren Zhiqiang's annual salary first. The question I am more interested in is: In this country, who should have the say on the level of house prices?Is it in the hands of developers like Ren Zhiqiang with an annual salary of several million?Or should it be in the hands of ordinary house buyers who cut down on food and clothing in order to meet their own housing needs? No matter from reason or theory, everyone understands that it should be in the hands of the latter.Just as the right to speak on whether it is difficult to see a doctor should not be in the hands of officials who go straight to the wards of high-ranking cadres, but in the hands of ordinary doctors. But unfortunately, in this magical country, whether it is difficult to see a doctor is in the hands of medical officials; whether the house is expensive or not is in the hands of Ren Zhiqiang. Looking at Ren Zhiqiang's annual salary of 7.74 million, you can fully understand his position on housing prices. Or calculate first: On November 23, 2008, Beijing’s so-called new housing policy came out. The new policy described the housing price standard of ordinary housing in Beijing as follows: the total price of each unit within the third ring road is 2.15 million yuan, and each unit between the third ring road and the fourth ring road is 1.75 million yuan. RMB 1.65 million per unit between the fourth and fifth rings, and RMB 1 million per unit outside the fifth ring. Based on an annual salary of 7.74 million, Ren Zhiqiang, a member of Beijing citizens: With 3 months and 10 days of salary, I can buy an ordinary house within the third ring road. With 2 months and 20 days of salary, you can buy an ordinary house between the third and fourth ring roads. With 2 months and 16 days of salary, I can buy an ordinary house between the fourth and fifth ring roads. One month and 16 days of salary can buy an ordinary house outside the Fifth Ring Road. In this way, in the eyes of Ren Zhiqiang, a house in Beijing is like a QQ in the eyes of someone with an annual salary of 200,000. Is the price high?not tall!Not only is it not high, but it is old and cheap! The amazing and sad thing is that such a person has a very strong say in the issue of whether China's housing prices are high or not, and can influence decision-makers. Ren Zhiqiang's annual salary has always been a topic for many years, especially the attributives given to him by his critics are always the two attributives of "getting an annual salary of 7 million" and "the third person he wants to hit", which makes the critics have morals. As for the commanding heights, Ren Zhiqiang is naturally inferior.However, if it was 15 years ago, Ren Zhiqiang's annual salary of 7 million, and he was still a state-owned enterprise, was a bit too high, and it is worth mentioning.Today, the annual salary of 7 million is not worth mentioning at all. Among the state-owned enterprises, Ma Mingzhe, the president of Ping An Insurance, has an annual salary of 60 million, and Wang Shi’s annual income is tens of millions or even over 100 million; private enterprises have Tang Jun’s transfer fee of 1 billion yuan.It can even be said that being a professional manager with an annual salary of 7 million is really not good, whether it is a state-owned enterprise or a private enterprise. As Ren Zhiqiang said, in fact, his income is two yuan, one for salary and one for incentive. The incentive may not be available, and the real salary is not that high.Moreover, it is very simple, he is the manager of a state-owned enterprise, and the SASAC decides how much to pay him. If the SASAC thinks he is not worth it, it can completely cut his salary.Therefore, Ren Zhiqiang is right, it is the State-owned Assets Supervision and Administration Commission that decides his salary. One more thing, Ren Zhiqiang's salary is high, but not particularly high. The government should increase land supply in order to change the current pattern of "land kings" frequently appearing due to land shortage.However, the current land bidding, auction and listing system follows the principle that the highest bidder wins, and the red line of 1.8 billion mu of arable land in the country cannot be crossed.Accelerating the circulation of homesteads is the solution. The Blue Book of the Chinese Academy of Social Sciences previously stated that 85% of households in China cannot afford housing, which is an absurd conclusion that lacks the basic premise of the status quo.If calculated by income, 85% of families cannot afford a house, how many families cannot afford a house if these housing assets and asset appreciation are added?If the income can't afford it, can't you sell your house and still can't afford it?In fact, it is the Chinese Academy of Social Sciences talking nonsense to incite public dissatisfaction.Strictly speaking, the developers were raped. From a certain point of view, real estate has already firmly kidnapped the entire Chinese economy and the central government responsible for China's economic growth.It is not that the relevant departments do not know where the real estate industry will go if this continues, but because the impact of the real estate industry is too great, it is inevitable that they will be a little powerless and unwilling to fight in the face of the problem. Judging from this series of adjustments, it is obvious that they are some measures introduced by various parties to regulate the real estate market.But it is not so much to promote the transformation of real estate, as it is for temporary control.Judging from the position of the regulators, they are concerned about the skyrocketing housing prices, but they have never given up the status of real estate as a pillar industry.It's just that after the financial crisis, the real estate market grew bigger and bigger. In order to control the bubble, policies were introduced to control it.Various relevant interest groups obviously do not want to see the transformation of real estate, and the so-called regulation is only to cope with the central government's policies. More seriously, since real estate has become a pillar industry, it inevitably restricts the development of other industries.Because of its high profit margins, local governments, banks and various other economic actors have invested a lot of resources in real estate. While creating a real estate bubble, it has also greatly limited other investment.Although China is also facing the huge tasks and challenges of industrial upgrading and economic transformation, the key word in recent years has been "real estate" in both the industry and the government.To a certain extent, real estate has also become a major obstacle to China's industrial upgrading. Objectively speaking, China's decision makers have also realized the importance of promoting the transformation of the real estate industry under the general layout of the entire industry adjustment.But at the implementation level and policy level, these ideas have not been implemented.Even if there are some transformations, they are just some signs, or it is the transformation of real estate as an economic product itself, rather than changing from an economic product to a social product.The real transformation should be that the real estate industry no longer becomes a pillar industry. Ren Zhiqiang's core point is that the developer is forced to bear the crime, mainly because the government did not bear the responsibility that should be borne by the developer.That's why there is this shocking statement that "the developer was raped".Therefore, the objector is still the previous point of view. Objectively speaking, our government is far from doing enough, such as affordable housing, the government's plans are always huge, but the results are not good. The development levels of real estate developers across the country are not the same. There are indeed many things that should be criticized and corrected. This will be improved with the establishment of market rules, the improvement of the legal system, and the self-discipline of enterprises and industry organizations.We are not opposed to any criticisms and suggestions that are conducive to the healthy development of the industry, but we firmly oppose those who do not speak with facts and data, but only use emotional language and trumped-up charges, or only use real estate developers as an "interest group" as a criticism reason.Labeling cannot solve the problems existing in the market, nor is it conducive to the healthy development of the real estate market.Although everyone has the right to criticize developers, China's real estate industry will unshakably become the pillar industry of China's economic development. On the morning of June 13, I flew to Hainan to participate in the Boao Real Estate Forum, which is the 8th session.More than 400 developers and more than 100 media reporters attended the meeting. I am a relatively honest person. Regarding corporate social responsibility, the first question that comes to my mind is why the image of real estate companies is the worst in all industries in China, and why the image of developers is the ugliest in the eyes of ordinary people. ?If anyone can name one that is more hated by the society than the real estate industry and developers, I hope he can tell me and we can discuss together.I have been a journalist for more than ten years, and I have come to this conclusion through a large number of interviews.In this earthquake, the developer also donated, but many ordinary people did not recognize it. The developer’s image is really bad, not only in China, but also abroad. The famous Trump in the United States is similar.Back then, his fortune was achieved through successful demolition. Developers have a bad image. One thing they have in common is that they all rely on government relations to get rich, rather than relying on high technology. No one like Ma Yun and Li Yanhong will say that they make huge profits, because they rely on business model innovation and technological innovation Succeeded, so there is no problem.But real estate is not the case, so it is always scolded. Ren Zhiqiang said, it is okay to scold me, but there must be reasons and evidence.Shi Hanbing is Ren Zhiqiang's old opponent, and his point of view is also worth thinking about. Why is the image of real estate developers so bad?All should reflect, developers, government, and even ordinary people must reflect. Only an industry with a good image can develop in a long-term and healthy way. Real estate associations must certainly represent the interests of developers.As a manager in any industry, as long as you are engaged in a certain industry, you must have a basic research on this industry.Our real estate companies may be the most authoritative in their research on the real estate industry. Various management agencies and ministries and commissions in the country have entrusted us with a large number of similar studies, and they ask us for these research reports every time. We firmly believe that the central government will make adjustments in macroeconomic regulation and control, including real estate adjustments.Real estate accounts for 20% of China's GDP growth, that is, 1.8 points of the 9% GDP growth last year (2008) came from real estate or related industries. If real estate investment becomes negative growth this year, that is, 1.8 percentage points will disappear , so this year it will be 7.2 points. If exports cannot contribute a part and investment cannot contribute a part, then there may be problems in maintaining 8 points this year.Therefore, I think China's economy will definitely regard real estate as its pillar industry and continue to play a role in stimulating GDP. If you don't want to use this pull, if China's real estate declines, then this year's macro economy will definitely continue to decline. Although Other industries are being revitalized, but they cannot be revitalized without real estate. For example, revitalizing the steel industry. Who can use so much steel like real estate? Real estate has been likely to be included in the top ten industrial revitalization plans, the news was revealed by the Real Estate Association.If it is disclosed, then the chance of inclusion is relatively small, why?The Real Estate Association is an association of real estate developers whose purpose is to make real estate developers earn more money.The country's public policy is written by a real estate association, which is a big problem for the whole planning. Yi Xianrong is a very good financial expert, but he always likes to comment and predict in the real estate field.The same is true, he made mistakes many times and was ridiculed inside and outside the industry.The most famous of these was in 2005, when he predicted that housing prices in Shanghai would drop by 50%, and housing prices in Beijing would drop by 30%. In 2009, at the Boao Real Estate Forum, Pan Shiyi blatantly mocked Yi Xianrong as inaccurate. In contrast, Ren Zhiqiang is accurate in almost every major judgment about real estate.This time is also the same. Although the nominal real estate industry has not been included in the national revitalization plan, among all industries, the state saves the most is real estate. The state has issued a series of loans to developers to encourage house purchases. and other policies to save the real estate industry.Its purpose is just as Ren Zhiqiang said - "to protect 8". This time, Ren Zhiqiang played the role of an economist. In contrast, Yi Xianrong, who is an economist by profession, made another mistake in his judgment. At least corporate citizens have their own rights and obligations. If our society cannot even guarantee the basic rights of corporate citizens, talking about the responsibilities that companies should bear can only be empty talk.If the documents of our central government are all ignored by everyone, who think that commercial housing is not for middle- and high-income families, then our market will not exist.This is not good for the development of the market. Maybe you may think that I said these things, so people hate developers; if I didn't say these things, no one would hate developers.I don't think so.As a corporate citizen, we may not do less than other companies. I am the only one in the country that implements quality assurance, and I am the only developer that sends money to consumers. What more corporate responsibility do you want?Am I not a good citizen if the consumer association already represents consumers and thinks I am the only business I can trust?I am A-level in taxation and A-level in banking. How can I be worse than you! The real estate developers shouted the slogan of "social responsibility", which made people doubt their sincerity.From some other details, it seems reasonable to say that this is a real estate developer who is trying to use the concept of social responsibility to improve his own image and relieve the pressure of all parties so that he can continue to "fudge".What is the motivation for these real estate developers to talk about social responsibility in such a high-profile way?Is it cunning self-preservation in the face of policy suppression?Is it a delaying measure in the face of public criticism?Or is it true repentance?It was really hard to judge for a while. A series of lists such as the "China's Top 100 Taxpayers" ruthlessly shattered analysts' optimistic predictions.In the words of Mr. Lu Xun, it is to "squeeze" out the "little" under the big talk of real estate developers. The author believes that these four social responsibilities can be divided into two categories: one is the negative responsibility that has to be borne under the constraints of the external compulsory system, and the first is obviously a negative responsibility; the other is the conscious responsibility out of moral conscience. The latter three items are all positive responsibilities.Whether an enterprise undertakes positive responsibilities is entirely a free choice of the enterprise, while negative responsibilities are unshirkable obligations.It is unimaginable that if an enterprise refuses to bear the negative responsibility of obeying the law, how can it consciously assume positive social responsibility out of moral conscience? If it is said that the courage to assume positive responsibilities out of moral conscience is a "high requirement" for an enterprise, then being law-abiding and paying taxes according to regulations is the "minimum requirement" for an enterprise.Before the "minimum requirements" are met, "high requirements" must be a luxury that cannot be realized.If an enterprise cannot even abide by the law and pay taxes according to the regulations, how can it be expected to assume social responsibility? It is unrealistic for companies to sacrifice corporate interests in exchange for social responsibility, but companies should also understand that social responsibility is not just slogans.If we really want to rebuild the moral image of the industry, we need to do a lot.In my opinion, real estate developers should first be a law-abiding enterprise that pays taxes according to the regulations, and then talk about social responsibility. Corporate social responsibility is not a very esoteric issue.Everyone says that Bill Gates has a social responsibility and has donated all his property to the society.But many people may not know that the price of Microsoft's Windows system in China is much higher than that in the United States.Why do Americans have higher incomes than Chinese people, but the cost of using Windows systems for Chinese people is higher than that of Americans?This is a question of economics, because the technical threshold for Windows system imitation is high, so Microsoft has obtained monopoly profits. Ren Zhiqiang is arguing with many people about the same issue - the relationship between business principles and social morality.From the perspective of business principles, Ren Zhiqiang is right, that's it, business is business, and charity is charity.So he even said that enterprises have no conscience, which is indeed the case. The media often tricks me into publishing criticism, but the media's "out of context" has become an inherent feature.It seems that if you don’t take things out of context, you won’t be able to attract attention and get advertising revenue, so a reverse incentive mechanism makes the media take pride in taking things out of context and take it as their responsibility to “confuse the public”.In order to obtain advertising revenue, the responsibility of the media has been forgotten. Spoofing has become popular and has become another way for the media to replace gossip. In recent years, Ren Zhiqiang's exposure rate in the media is definitely not inferior to that of Zhao Benshan and Zhang Ziyi, and he can be called the most dazzling star among developers.Some time ago, he published an "interpretation" of tens of thousands of words on his personal blog, bombarding the new policy of real estate regulation, which attracted a lot of attention.In this "interpretation" of nearly 13,000 words, Ren Zhiqiang only quoted a total of 3 sentences and 71 words in the text of the notice, which are "speeding up customization, adjustment and improvement of relevant policy measures", "high housing prices, rising In areas that are too fast, it is necessary to substantially increase the supply of public and rental housing, affordable housing, and price-limited commercial housing," and "sell externally in strict accordance with the declared price."The proportion of the original text of the notice in the article is not even a fraction of the number of words. It is not so much an "interpretation" as a "romance".In the "Romance", Ren Zhiqiang said a lot of content that was not in the notice, and took a lot of labels. The development of human society has always been dominated by each other for decades.Take the United States as an example. From the early slave owners, to the later car tycoons, and now to the current IT experts, the rise and fall of popular social groups always change with the progress of the times, and are not based on anyone's personal will. transfer.The popularity of developers in China today is just a phenomenon of historical development stages. When Chinese society develops to the point where people's living needs are basically met, developers will naturally fade out of the media spotlight.At that time, looking back at Ren Zhiqiang's bombardment today, it is just a harsh high-pitched sound before the curtain call of the developer. Over the years, Ren Zhiqiang has often criticized the media, but there seems to be no opposition, including the media itself.Instead, he became the focus of media exposure, and many serious media reported on him mostly objectively and fairly. However, many media often extract the essence and highlights of his speech and report them.This is normal for the media. Can a meeting last for several hours and be fully reported?Impossible, it must be to extract the essence and report a part.Therefore, what Ren Zhiqiang said was taken out of context is also a helpless move for the media.