The core area puts less inventory in full block

The Chinese-funded consortium is more interested in the whole block of commercial buildings. However, there have been very few cases of sale of the whole block in the core area. In recent years, Chinese companies have also switched to the border areas including North Point, Hung Hom and East Kowloon.

Can obtain naming rights

Chinese-funded institutions have always been interested in Hong Kong commercial buildings. In addition to Chinese-funded institutions’ own use for business development, they can obtain property naming rights by purchasing full-fledged commercial buildings. They have a propaganda effect on the Group’s reputation and therefore have the largest number of buildings in Hong Kong in recent years. Commercial transactions are almost entirely taken over by Chinese-funded consortia (Central Center’s turnover of 40.2 billion yuan is a 75% ownership, not a full-fledged property).

In terms of property selection, the preferred area for Chinese companies must be Central. However, there are few cases of sale of commercial buildings in the Central Tower. Therefore, the Chinese-funded institutions are advancing towards the border areas, such as Evergrande (03333) and China Everbright Group, with an annual turnover of RMB 12.5 billion and RMB 10 billion respectively. Yuan purchased the Wanchai Commercial Building and is now renamed as Evergrande Centre and Everbright Centre respectively.

In addition, the largest property deal this year is that Taiping Trust and China Kechuang Capital purchased nearly one billion yuan from the Jinghua Road commercial building in North Point. In Kowloon, the brand-new commercial building has also been favored by Chinese companies, such as the One HarbourGate project of Wheelock (00020), which has been accepted by China Life Insurance (02628) and Xiangxiang Group.