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HANG LUNG PPT Ronnie Chan: Real Est. Industry Should be Steered by POEs
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HANG LUNG PPT (00101.HK) Honorary Chair Ronnie Chan said at the forum today that the real estate industry should definitely be steered by private enterprises (POEs), and that supervision must be improved. Chan also commented that greed is the key driving force in a market economy, so greed is not a sin, but greed that breaks the law is a sin. The key lies in right supervision. He was unconvinced that Hong Kong property developers were not as greedy as their mainland counterparts, and that even those in the US and Singapore were the same greedy. However, there will not be any problem if the greed is managed by a sound system. Chan continued that the difficulty of the mainland property market has been lasting for decades, and he concluded three major factors, namely the government's reliance on land sales revenue, the corruption in land purchases or loans by real estate developers, and the failure to allow bad businesses to go bankrupt. He pointed out that the property market could not remain largely unchanged for a long time because it is inherently cyclical. Chan opined that the property market has two ways to adjust itself: one is to burst small bubbles one by one, and the other is to wait for large bubbles to form and then burst them. For the case in the mainland, the past 30 years have been about not allowing small bubbles to burst, which has posed a tremendous impact on the economy. Chan considered that the property market has now reached the bottom of an L-shaped curve, and that the future is rational. Learning from mistakes, the regulatory environment is advancing, which is a boon to the healthy development of the industry. AAStocks Financial News |
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