Chinese Property Market Investing and Operation System
K&G’s ultimate goal is to create value for cities. How are we going to do that? For example, as we introduce capital to a city, capital needs return financially as a prerequisite, since no capital will flow without aiming to generate returns; it needs development in industry sector to produce return. K&G’s over 1200 IP will do exactly the job in the sense providing ends for the capital. In other words, we are actually putting capital and industry sector together into cities. Their interaction will naturally create a functioning ecological system.
Chinese property market over decades of incremental development has left massive property stock which we see as opportunities. Since the ceiling of incremental development has nearly been reached, the regulators must pay more attention to property stock in the sense of organizing and integrating underperforming assets hence the true value of these assets can be realized. That, is K&G’s point in making property stock investing and operation system.