Chen Jinsong: China's model is Japan, and if the house does not appreciate, it can no longer be fried

China's model is Japan, the house does not appreciate, it can no longer be fried.

Zhongfang Bao reporter Ju Xiaobo reported from Beijing

A year ago, the World Union Bank squeezed into the asset management industry, including the entrepreneurial community and the leasing industry. The company's 2015 annual report shows that the growth of the world bank's asset management business and the small sample community have become the highlights, and the company's asset service basic property management business is actually managing 74 projects, with an area under management of 2.882 million square meters, achieving operating income of 413 million yuan, an increase of 34.9% year-on-year, while new businesses such as small sample community and apartment management are actively promoting.

China Real Estate News: When the World Union Bank decided to enter a new field of asset management such as leasing operations, what was the reason for this?

Chen Jinsong: We see that the Japanese leasing operation market is doing relatively well, and there are great opportunities in this field in China, and we can learn from it.

China Real Estate News: More and more traditional intermediaries and start-up companies are pouring into the leasing industry, the competitive environment is deteriorating, and the profit model is constantly being tested. Why did the World Union Choose to Enter the Field at this time?

Chen Jinsong: It is indeed difficult to rent an apartment to operate, but the World Union Bank has its own advantages, that is, it has cheap money, because it is a listed company. Cheap houses can also be found. For example, looking for cheap houses, you certainly can't find luxury houses in the north, Shanghai and Guangzhou, find some industrial plants in urban villages to renovate, and the World Union Bank cooperates with Vanke in Shanghai to find some industrial plants, which is cheaper.

China Real Estate News: Is it difficult to collect industrial plants or cheap listings at present? What are the earnings prospects?

Chen Jinsong: There are many such listings, including in Beijing, there are a large number of listings, like about 50% of the houses in Beijing are not commercial houses. Profitability is generally 3 years to recover costs, and some projects can even be bundled with customers through capital.

China Real Estate News: How big is the current scale of the World Union Bank's leasing operations?

Chen Jinsong: This business has been done for more than a year, and tens of thousands of suites have been collected. In China, it is easy to collect tens of thousands of houses a year. The main radiation range is still first- and second-tier cities, including some "strong third-tier" cities, and cities with a large number of migrant workers.

China Real Estate News: What will be the future share of the World Union Bank's leasing operation business in the group's business?

Chen Jinsong: I hope to account for 1/3. We are very optimistic about the future of leasing, China's model is Japan, the house does not appreciate, it can no longer be speculated.

China Real Estate News: When is reits expected to be implemented?

Chen Jinsong: Reits should be fully liberalized in the next three years, and now it is inventory, whether it is residential or commercial, if it is not released, it will not solve the inventory problem. But reits also have thresholds and need to set up rules, and the current tax problem is a big obstacle. The Bank has now issued two private placements.