Vanke transforms new business to meet economic adversity
Yu Liang, chairman of Vanke Enterprise (02202), pointed out in an internal mail that the L-shaped trend of the mainland economy has not yet bottomed out, and the downward pressure on the economy has not been eliminated. In the past, Vanke’s judgment on the macro economy was too optimistic, and now Vanke needs to be prepared for the long term.
Yu Liang said that in 2019, Vanke should converge and focus to consolidate the basic level. Faced with the uncertainty of the market, Vanke should abandon all speculation and luck, and jump out of path dependence and past bull market thinking.
He also believes that there is a huge space for China’s urbanization process, and it has entered the second stage. There is still room for development in real estate, but bluntly does not mean that “the future can still live by eating this meal", stressing that Vanke still challenges the road of transformation. Heavy, you must do new business.