Jinyuan Investment Group Launches Multiple Measures to Seize the Opportunity of Real Estate Investment in the Guangdong-Hong Kong-Macao Greater Bay Area

On February 18^th, the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area ( the Outline) was officially released, and the construction of the Greater Bay Area, a benchmark for the international first-class bays and world-class urban agglomerations, is ready to be launched. Numerous industries and companies within it will facing excellent historical opportunity and development platform. Lu Zhaoqing, board chair of Hengchuang Group and Jinyuan Investment Group, who has worked in the real estate finance field for many years, recently said on the meeting for the collective study of staffs on the Outline that the real estate industry is definitely to be benefit from this initiative firstly. He believes that with the continuous development of its urban agglomeration, it will attract more people to migrate to the urban agglomeration. The demand of such additional population for real estate will grow steadily, and its real estate industry will usher in a policy dividend period.

According to the Outline, it includes 9 cities in the Pearl River Delta region of Guangdong and two special administrative regions of Hong Kong and Macao, with a total area of 56,000 square kilometers. Currently, it has a total resident population of about 70 million, with a total GDP of over 10 trillion yuan. It is one of the regions with the highest degree of openness and the strongest economic vitality in China.

At present, the world's three major bay areas that have formed economies of scale are the New York Bay Area, the San Francisco Bay Area and the Tokyo Bay Area of Japan. According to the statistics, comparing with the three major Bay Areas, the Greater Bay Area all enjoys a leading position in terms of population, GDP, total import and export volume, floor space, port container throughput and airport passenger throughput. While calculated by this economic density indicator, i.e. per capita GDP, it is significantly lags behind the other three Bay Areas, only accounts for 32% of that in the New York Bay Area, 40% of that in the Tokyo Bay Area and 18% of that in the San Francisco Bay Area. In addition, the per unit area output and the proportion of the tertiary industry are also lower than that of the three major Bay Areas.

"This gap reflects its unbalanced and inadequate internal development on the one hand, but also shows that there is huge potential for its economic development on the other hand." Lu Zhaoqing believes that with the free flow of resources and complementary of each region within it, it has full strength to catch up from the behind. According to Citi's estimation, by 2030, its population will increase to a maximum of 88 million, and the total economic volume will reach 3.2 trillion US dollars to 4.1 trillion US dollars.

This gap has also brought new development space for its real estate industry. In Lu Zhaoqing's view, the value of property and land prices within it will be reconstructed in the next few years. The price will significantly increase after price depression, "As a key national strategic development place, it will usher in more favorable policies. This is the most prominent opportunity for its real estate investment in the short-term."

According to reports, based on the development prospects of its real estate industry, Jinyuan Investment Group, which was founded by Lu Zhaoqing, has been intensively laid out its business before the introduction of the Outline, and actively integrated into its construction. Lu Zhaoqing said that 2019 is the launch year of the Greater Bay Area, it is also the year in which Jinyuan Investment Group is fully integrated into its construction. On the basis of strict risk control, Jinyuan Investment Group will carry out multiple cooperation with well-known real estate enterprises with rich project reserves in this area, so as to meet the financing needs of the real estate development cycle. "We have issued various products by collaborating with strong real estate companies, aims to support its development and also hope to provide investors with a professional, stable and rich investment choice for sharing the "Bay Area Dividend". It is reported that the urban upgrading project of Shenzhen Xia Shui Jing Area jointly developed by Jinyuan Investment Group and Evergrande Real Estate Group is proceeding in an orderly manner. This is also a useful attempt by Jinyuan Investment Group to participate in urban construction through innovative real estate fund product models.