What is the reason behind Li Ka-shing Wang Jianlin's withdrawal from real estate?

On the stage of China real estate, Li Ka-shing and Wang Jianlin should be the first people to enter this industry. Both of them have made a difference in this industry. Both of them were once the richest men in China, and they are also permanent figures on the rich list. The enterprises they founded are very famous in China, and many of their practices are also controversial in the real estate industry. After all, these bosses are experienced in the real estate market in China.

But in the past few years, Li Ka-shing gradually withdrew from the real estate stage. Then from the previous year, Wang Jianlin began to sell his own property.

Li Ka-shing withdrew from the domestic real estate market for three reasons. First of all, I believe everyone knows that Li Ka-shing is over 90 years old. In the past few years, he has considered making the reorganization of his business empire more stable before retiring, so that when he hands over his future to his son Li Zeju, he can have a sustainable development.

Secondly, Li Zekai, the second son of Li Ka-shing, has always wanted to develop overseas in recent years, so he chose to sell domestic assets to raise a lot of money to help Li Zekai complete the acquisition of overseas markets. It is precisely because of Li Ka-shing's continuous investment that Li Zekai has made great achievements in the European market in recent years, such as acquiring many British energy, wharf, power plants and other enterprises. Although these infrastructure investments can't make Li Zekai rich overnight, they have very stable returns.

In addition, the real estate markets in China and Hongkong have not been favored by Li Ka-shing. He bought land in Chinese mainland and Hongkong at a very low price. After years of rising prices, he felt that he had made almost all the money. Faced with this rapidly changing situation, he wants to gradually withdraw from the market and strive to withdraw completely before the price falls.

Why does Wang Jianlin want to sell real estate?

First of all, with the increasingly fierce and homogeneous domestic e-commerce, the commercial real estate circle has not been well integrated. Even after the completion of commercial real estate projects, enterprises should also consider the issue of attracting investment. Now it is more and more difficult to attract investment, and commercial real estate consumes a lot of money in Wanda. Both Wang Jianlin and Wanda have reached the stage of transformation.

Furthermore, after the crazy expansion of Wanda in recent years, Wang Jianlin began to realize that Wanda's heavy asset operation burden was too heavy. Obviously, for Wanda today, the light asset strategy is more suitable. How to reduce the group debt is Wanda's first consideration. Then, only the hotel property at hand is sold. Wanda's main direction in the future is to withdraw funds as soon as possible and turn to light assets.