Small developer finds big opportunities in mainland

Hong Kong-listed developer Zhong Hua International Holdings will continue to explore opportunities in the mainland market, saying the SAR property sector is too risky for smaller players.

Zhong Hua, which specialises in property developments in Guangzhou, Beijing and Chongqing, said the mainland market was far more promising, considering its high profit margins and rising demand in some key cities.

Chairman Ho Tsam-hung said the cautious mood among Hong Kong home-buyers meant small developers were easily squeezed.

'Most of us are forced to seek opportunities elsewhere because we are unable to compete with the major players,' he said.

He said small developers were heading for the mainland due to the abundant land supply. 'Land acquisition in China is far easier and cheaper compared to that of Hong Kong,' Mr Ho said.

However, he added it would be some time before more regulated and formal land sale rules were introduced in the mainland.