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Phoenix Kwong

The mainland property sector will remain an engine for economic growth over the next decade and serve as a “lifesaver” amid the slowdown, China’s richest man Wang Jianlin believes.
“In the next five to 10 years, there’s unlikely to be an industry that could replace property as an engine for growth,” Wang, who built his empire on property, told The Beijing News.
The property sector directly accounted for 12 to 13 per cent of the mainland’s gross domestic product, but if related industries such as construction, decoration and building materials were included the figure would be more like 30 per cent, said Wang, chairman of property conglomerate Dalian Wanda.

The company has diversified in recent years to entertainment, tourism and sport.
READ MORE: Is 2-child policy another stimulus to China’s property market?
If such a big “engine” as property was not running correctly, the economic “train” would be in trouble, regardless of the input of other industries, he said.
Wang said the ongoing slowdown in the economy had been caused by a slump in the property market.
“The real estate sector was hit too hard[by the government’s tightening policies],” he said, adding that growth had been stagnant this year when compared with the average 20 per cent rises of the past four to five years.
“Currently, the property sector has a negative effect on economic growth – it is not driving the growth,” Wang said.
President Xi Jinping last week pledged support for a sustainable property market and said oversupply in the market needed to be addressed.
There are signs the property sector is recovering despite the weakening growth in the wider economy. New home prices in October rose 0.1 per cent from a year earlier, the first rise since August last year, according to the National Bureau of Statistics. In September there had been a 0.9 per cent drop.
Wang said the activity in the property market was fuelled by investors who had become disillusioned with the stock market.
Money flowed into the stock market when it was hot, then the stock market was not working well, so money began flowing into property
Wang Jianlin, Dalian Wanda
“Money flowed into the stock market when it was hot, then the stock market was not working well, so money began flowing into property,” Wang said.
He said the government was in a dilemma as easing austerity measures, which could help tackle oversupply, might prompt too great an influx of capital into property.
“So I think the current approach with fine-tuning policies to gradually buoy the property market is appropriate,” he said. “But from my point of view, the property industry cannot bear any other big hit, and inventories should not be built,” he said.


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China property

China's richest man knows best: Property can be 'lifesaver' of mainland economy, says Dalian Wanda's Wang Jianlin

Wang Jianlin built his empire, Dalian Wanda, on property. Photo: Dickson Lee

Residential buildings under construction in Yinchuan, capital of northwest China's Ningxia Hui Autonomous Region. Photo: Xinhua

(151118) -- YINCHUAN, Nov. 18, 2015 (Xinhua) -- Photo taken on Nov. 18, 2015 shows residential buildings under construction in Yinchuan, capital of northwest China's Ningxia Hui Autonomous Region. China's real estate sector reported slower recovery in October, with new home prices in a declining number of cities registering month-on-month rises. Of 70 large and medium-sized cities surveyed in October, new home prices climbed month on month in 27, down from 39 in the previous month, the National Bureau of Statistics (NBS) said Wednesday. (Xinhua/Li Ran)(wf)

An investor looks up in front of an electronic board showing stock information at a brokerage house in Fuyang, Anhui province, China, November 18, 2015. China stocks fell roughly 1 percent on Wednesday as a surge in property shares in the wake of encouraging home price data was offset by slides in many other sectors as investors took profits. REUTERS/Li Sanxian CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA

An investor looks up in front of an electronic board showing stock information at a An investor looks up in front of an electronic board showing stock information at a brokerage house in Fuyang, Anhui province, China. Wang Jianlin says investors are taking money out of stocks and investing in property. Photo: Reuters

China's richest man knows best: Property can be 'lifesaver' of mainland economy, says Dalian Wanda's Wang Jianlin

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.css-jfmysa{display:inline;word-break:break-word;}.css-1ankfgb{cursor:pointer;display:inline;word-break:break-word;}READ MORE: Is 2-child policy another stimulus to China’s property market?

READ MORE: Is 2-child policy another stimulus to China’s property market?