Yangtze River Delta: Hong Kong, mainland Chinese developers invest billions as they seek to ride region’s ambitious development plan

Name: The Yangtze River: Why China’s ‘beating heart’ is too big to fail
Uploaded: 2021-02-10T00:30:15.000Z
Duration: 6 min 40 s
Description: The Yangtze River: Why China’s ‘beating heart’ is too big to fail

Hong Kong-listed K Wah International Holdings sets the bar high with plans to invest US$1.55 billion in proposed mixed-use project in Nanjing

Capital investment in the Yangtze River Delta is being driven by infrastructure development and companies’ expansion plans, say analysts

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Hong Kong and mainland developers are investing heavily in Yangtze River Delta cities like Nanjing. Photo: Shutterstock Images

Sandy Li

Published: 8:30am, 10 Feb 2021Updated: 3:37pm, 10 Feb 2021

Hong Kong and mainland property developers are pushing ahead with their strategy in the Yangtze River Delta, investing billions of yuan in a spate of deals to take advantage of Beijing’s ambitious development plan for the country’s top economic powerhouse.

K Wah International Holdings, chaired by Hong Kong’s fifth-wealthiest man Lui Che-woo, said last Friday that it would invest about 10 billion yuan (US$1.55 billion) in a proposed residential-cum-commercial project in Nanjing, the capital of Jiangsu province.

The Yangtze plan, first revealed by President Xi Jinping in August 2019, covers Shanghai and the three neighbouring provinces of Jiangsu, Zhejiang and Anhui, which together make up the most densely populated and most affluent region in China, accounting for one-sixth of the country’s population, or at least 220 million people.

“I expect to see more capital to flow and or be reinvested by businesses looking to set up new operations or expand existing operations in the Yangtze River Delta, with this capital investment being driven by infrastructure development, growing innovation and increasing market size,” said Shaun Brodie, head of occupier research for Greater China at Cushman & Wakefield.

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The Yangtze River: Why China’s ‘beating heart’ is too big to fail

Last Thursday, Shenzhen-based Logan Group said that it had secured two residential sites in Suzhou, Jiangsu province and Wenzhou, Zhejiang province for 1.99 billion yuan. And in January, Logan won a 139,403 square metre (1.5 million sq ft) commercial-cum-residential site in Shanghai for 4.3 billion yuan.

Also last week, Shui On group said that it has formed a joint venture with Grosvenor Asia Pacific, a privately-owned international property company, to acquire a grade A office and retail building, Nanjing IFC, in Nanjing, for an undisclosed amount.

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