Chapter 45 7. Hong Kong's real estate industry collectively survives the winter

The unpredictable market made it difficult for Vanke to set a price. The real estate company, which was established in 1984 and had maintained profit growth for 14 consecutive years, felt unprecedented pressure.According to statistics from the Beijing Municipal Bureau of Statistics on October 24, 2008, in the first three quarters of 2008, the average price of housing within the Fourth Ring Road in Beijing fell by 235 yuan per square meter year-on-year. In the downturn, how should real estate companies like Vanke adjust their strategies?If the wave of check-outs intensifies, what impact will it have on my country's economy?How did Hong Kong's real estate industry survive the winter when the Asian financial crisis occurred?

Vanke is a company that has gone through several ups and downs, including the first macro-control, etc. It has been hit and kicked out, so its crisis awareness is relatively strong, in other words, its risk management awareness is relatively strong.I would like to give you examples of the "Four Heavenly Kings" in Hong Kong.Wang Shi never forgets to mention it every time he gives a speech. Since Wang Shi likes to talk, I will talk about Sun Hung Kai. Li Ka-shing’s Hutchison Whampoa and Cheung Kong, Zheng Yutong’s New World, Guo Bingxiang’s Sun Hung Kai, and Lee Shau Kee’s Henderson Land are called the "Four Heavenly Kings". The four kings have a strong sense of risk management that you can’t imagine.

Let me take the debt-to-equity ratio as an example, which is the debt divided by the capital (net assets). The debt-to-equity ratio of listed companies in mainland China is 100%-300%. Guess the companies like Li Ka-shing, Cheng Yu-tung, Lee Shau-kee, and Guo Bingxiang What is the debt-to-equity ratio?These people will not be unable to borrow money, their company is so large, much larger than Vanke, Hong Kong's legal system is sound, and the credit system is good, they will not be unable to borrow money.Guess what is the gearing ratio of these people?Our mainland listed companies are 100% - 300%. There is absolutely no problem with the four kings borrowing money, but they only have 20%.Why only 20%?Because these people know very well that the best entrepreneur is one who knows how to be the best entrepreneur and who pays attention to risk management.

It's not about how much money you can make when you are in good times, but that you can not go bankrupt when you encounter adversity, that is the real level.So someone asked them privately, including when they were giving speeches, what is your philosophy of success in this life?I'm sure you've heard a very strange line, they say "our philosophy of success in this life is conservative".Of course, their approach is more mature and has decades of experience. Their approach, including communication with customers, will have a very smooth transition, and it is impossible to say that the price will be lowered immediately, like what Vanke did.They are very skilled because they have experience, but the real essence of success is that they are very, very conservative in doing things, so Vanke is a little similar to them.It’s just that Vanke’s way of doing things, I don’t know why, they always choose the tragic path, no matter what happens, they choose the most tragic way to express themselves, I don’t understand the style of this company.