CX Daily: Cutting the Ties That Bind Property Managers to Developers

China’s Vice President Wang Qishan will attend South Korean president’s inauguration.

May 07, 2022

TOP STORIES

Property workers lay flowers at a gate of a residential area in Shenyang, capital of Northeast China's Shenyang, on April 29. Photo: VCG

Property /

In Depth: Cutting the ties that bind property managers to developers

As China’s worst Covid-19 outbreak in two years prolongs the country’s property slump and starves stressed developers of cash, their property management units are increasingly separating themselves from troubled parents.

In China, big developers usually set up property service units to manage their projects. But as more and more developers face liquidity crises, the property management units’ profits are suffering amid unpaid receivables from the parents, and they are seeking outside revenue.

Sunac Services Holdings Ltd., one of the leading Chinese property managers, reported a 230% year-on-year increase in its receivables in 2021, representing 58% of total revenue. Parent Sunac China Holdings Ltd. owed more than half of the unpaid bills.

State-backed developers snap up more land than private rivals

Covid-19 /

Covid delays 2022 Asian Games in China

The Olympic Council of Asia (OCA) announced Friday that this year’s Asian Games, which were scheduled to take place in September in the eastern Chinese city of Hangzhou, have been postponed due to Covid-19.

The decision was made after “detailed discussions with the Chinese Olympic Committee and the Hangzhou Asian Games Organizing Committee” on “the pandemic situation and the size of the Games,” according to an OCA statement.

China’s top leaders reiterate support for ‘zero-Covid’ strategy

FINANCE & ECONOMY

In the survey, 83% of companies said lockdown measures introduced in industrial hubs including Shanghai, Changchun and Shenzhen have affected their production.

Survey /

European businesses cut China revenue projections on Covid concerns

European companies in China are cutting revenue projections for the year, citing supply chain disruption risks and uncertainties stemming from the country’s “zero-Covid” policy.

Nearly 60% of businesses surveyed last month by the European Union Chamber of Commerce said they expect 2022 revenue to decline, mostly by 6% to 15%, according to a report issued Thursday by the chamber.

Twenty-three percent of respondents said they are now considering shifting current or planned investments out of China to other markets — more than double the number that were considering doing so at the beginning of 2022 and the highest proportion in a decade, according to the report.

Insurers /

China’s insurers suffer rocky first quarter amid Covid fallout, volatile markets

China’s insurance sector went through a challenging 2021. With a few exceptions, premium income and profit growth among Chinese insurers were sluggish as the economy cooled, consumer demand faltered, armies of sales agents were downsized, and investment returns weakened amid volatile capital markets.

The country’s biggest insurers warned when they presented their 2021 earnings results that 2022 would be another bumpy ride as they face multiple challenges not only related to a domestic economic slowdown, but also to changes in the way they do business.

China-South Korea /

Vice President Wang Qishan to attend South Korean president’s inauguration

China’s Vice President Wang Qishan will attend the inauguration ceremony of South Korea’s President-elect Yoon Suk-yeol on May 10 at the invitation of the South Korean government, the foreign ministry announced Friday.

A special representative and a close aide of President Xi Jinping, Wang will lead a delegation to Seoul for the event.

Quick hits /

Wang Tao: How far will China's yuan depreciate

BUSINESS & TECH

Chinese medical-device maker Andon’s premises in Tianjin on March 28. Photo: Andon

Medical /

Chinese sponsor of super bowl plans U.S. Covid test factory

A Chinese medical-device maker whose popular at-home Covid-19 test kits made an appearance at this year’s Super Bowl is planning to build a factory in the U.S.

Andon Health Co. Ltd. is now scouting for a plant location in the country, Chairman Liu Yi said at an investors’ meeting Thursday.

The overseas expansion comes as global demand for China-made medical devices remains strong after spiking at the start of the pandemic.

Listing /

NEV-maker Nio to list shares in Singapore

Nio Inc. said Thursday it won a green light to list shares by introduction in Singapore, making it the latest U.S.-traded Chinese company to look for other venues for its stock as the threat of being booted from American exchanges persists.

The electric-vehicle maker will issue an introductory document later this month. The Singapore-listed shares will be fully fungible with Nio’s American depository shares listed on the New York Stock Exchange.

Quick hits /