In a recent article (Tan Teng Boo: "I won't touch Keppel, SembCorp...but want to buy China New Town"), well-regarded fund manager Tan Teng Boo said: "We are looking at China New Town Development. I am interested in it because it is not the usual property developer in China. It is more of a township developer. The company is not building on vacant land but is more of a redeveloper (that implements) policies of the Chinese government. If the local government has a shanty town and wants to redevelop it, it will partner China New Town Development."
China Development Bank (CDB) is the largest development financial institution in China. It serves national development strategies. In 2014, CDB became the controlling shareholder of China New Town Development (CNTD), which is listed in Singapore and Hong Kong. To learn more about CNTD, read the following excerpts from CNTD Chairman Fan Haibin's message in the just-released 2015 annual report:
 Nanjing New Town: Shanty town transformation and re-development is in line with the national policy and becomes the focus of the local government.In 2014, CDB received a cash injection of RMB1 trillion from the People’s Bank of China and established the housing finance division, focusing on providing mid to long-term financing support to the transformation of shanty-towns and urban villages across the country. Specifically, in 2014 CDB has cumulatively lent out RMB408.6 billion worth of loans to transform shanty-towns and RMB1.11 trillion to urbanization, in support of the implementation of the most recent national urbanization plan, which accounted for 60% of RMB loans issued during the year. In the first half of 2015, CDB has cumulatively lent RMB729 billion to the urbanization sector, accounting for 68% of the RMB loans issued in the same period. The increase fully reflects the unique role of CDB in the new-type urbanization field. In the coming year, the entire CDB system will continue to implement the national policy unswervingly, shouldering greater responsibility and investing in the country’s future, especially by exerting its unique functions in strategic areas of industrial-township integrated growth and new-type urbanization. |
Formulate clear strategy, adopt innovative models, establish a leading position in the field of investment and operation in new-type urbanization
Based on this strategic plan, CNTD was officially acquired by CDB and CDB Capital on 28 March 2014, becoming the only listed platform of CDB in urbanization and targeting to consolidate the strategic resources of the CDB system in the operations of new-type urbanization and establish a unique operating platform and brand within the industry.
2015 represents the second year after the completion of acquisition. The Company’s management has strategically focused on strengthening the investment in new-type urbanization projects.
Leveraging on shareholder CDB’s abundant resources and network, the Company rolled out smooth project cooperation with local governments which in turn opened up opportunities to cultivate the downstream investment opportunities of new-type urbanization.
Leveraging the industry impact of CDB through investing in high quality urbanization projects nationwide, the Company accelerates establishing its own investment strategy and characteristics and continues to grow towards fulfilling the role of the core operating platform in new-type urbanization of CDB and CDB Capital.
 “ Leveraging the industry impact of CDB through investing in high quality urbanization projects nationwide, the Company accelerates establishing its own investment strategy and characteristics and continues to grow towards fulfilling the role of the core operating platform in new-type urbanization of CDB and CDB Capital. “This will change investment mode from the previously deeply and capital intensively engaging in a single project to a diversified mode of investment, so that the Company establishes a brand new business model while securing a better return to shareholders.” -- Chairman Fan Haibin (photo) |
This will change investment mode from the previously deeply and capital intensively engaging in a single project to a diversified mode of investment, so that the Company establishes a brand new business model while securing a better return to shareholders.
In September 2015, the Company and Shenzhen Venture Capital Group Co., Ltd. entered into a “Strategic Cooperative Agreement” to establish long-term strategic partnership, under which Nanjing Yuhuatai Software Valley A5 Project was launched as the premiere project.
This fully reflects the advanced business model of “industry investment + industrial park development” and introduces the respective abundant resources of CDB and Shenzhen Venture Capital Group to the Software Valley’s industrial land resource to form a comprehensive industrial chain, thus enhancing the land value and ensuring positive spillovers to the related downstream industries.
In addition, the Company is actively involved in Yangzhou Airport New Town Project, aiming to explore deep high-quality investment opportunities in the Yangtze River Delta region through the participation in the project development, to ultimately enhance the Company’s brand value in new-type urbanization segments.
In the meantime, the Company participated and contributed capital to the CDB-BOFCOMM New-type Urbanization Fund, which enabled the Company to inherit CDB and CDB Capital’s strong financial investment experience and project sourcing channels, and constantly launched new projects in relation to urbanization.
