China’s real estate developers strive to diversify
Since 2010, real estate developers in China have tried to diversify their business portfolio. However, due to the fact that some transformations were too different from the main business, success proved elusive and many returned their focus on real estate. In March this year, Sunac launched the “Taoyuan+” strategy, which will gradually extend to the fields of culture, entertainment, tourism, sports, leisure, education, health and age caring. While in April, Evergrande announced that it will invest 100 billion yuan (US$14.45 billion) in the high-tech area. Another major real estate developer, Greenland, said it will invest 300 million yuan to deploy artificial intelligence, in addition to its investment in infrastructure, finance, hotels and supermarkets. Insiders think most real estate developers tend to choose finance, tourism, education and age caring, which can form synergies with residential development to look for new profit growth points.
Tags : INTERNATIONAL