China News Service, Boao, March 27th: Title: Chairman of Hong Kong Swire Group: Unswerving in deeply exploring the Chinese market
China News Service reporter Chen Su
"The opportunities in the Chinese market outweigh the challenges. The long-term positive fundamentals, large market size, and continuously released domestic demand have brought huge room for development." Guy Bradley, chairman of the Swire Group in Hong Kong, said at the Boao Forum for Asia 2024 Annual Conference In an exclusive interview with a reporter from China News Service during the period, he said that Swire is unwavering in its determination to deeply explore the Chinese market.
Despite the slow recovery of the global economy and the escalation of geopolitical tensions, China has always adhered to a high level of opening up to the outside world, comprehensively promoted Chinese-style modernization with high-quality development, and the overall economy has rebounded for the better. Statistics show that in 2023, China's economy will grow by 5.2%, ranking among the top major economies in the world, and contributing more than 30% to global economic growth. The steadily advancing Chinese market continues to attract global investors.
Continued recovery in consumption benefits businesses
As a foreign-funded enterprise that has been deeply involved in China for many years and operates diversified businesses, Bradley said, "We always believe that the opportunities in the Chinese market outweigh the challenges. The long-term good fundamentals, large market scale, and continuously released domestic demand have brought huge growth. Expansion capacity."
He said that in recent years, consumption has become the first driving force for China's economic growth. The continued recovery of consumption is bringing stronger impetus to China's economic growth. Whether it is the optimization and upgrading of the consumption structure or the diversification of consumer demand, it will further promote the expansion of consumption scale and thereby promote economic growth.
The 2023 full-year results show that Swire Pacific's recurring underlying profits have increased significantly. Talking about this report card, Bradley said that this is due to the positive momentum of China's economic recovery, especially the continued recovery of consumption. The retail sales of Taikoo Li Sanlitun in Beijing, Taikoo Li Chengdu, Taikoo Li Guangzhou, INDIGO Beijing, HKRI Taikoo Hui in Shanghai and Taikoo Li Qiantan in 2023 will increase by 31%, 33%, 15%, 27%, 29% and 79% respectively. %, Cathay Pacific passenger flights have returned to 70% of pre-epidemic levels.
Optimistic about China’s economic growth momentum
The International Monetary Fund (IMF) predicted in February this year that China's economy would grow by 4.6% in 2024, an increase of 0.4 percentage points from the forecast in October 2023.
Looking forward to China's economy in 2024, Bradley said that various measures from the development of new productive forces to the government work report will provide stronger support for China's economic growth. "As high-quality development and high-level opening-up continue to deepen, more companies will increase investment in China, which will not only promote their own growth but also accumulate more momentum for China's overall economic growth."
At present, Swire's total investment in the mainland has exceeded HK$143 billion, and it has continued to invest in the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, Hainan Free Trade Port and other regions.
Unwavering determination to deeply explore the Chinese market
"Swire's determination to deeply explore the Chinese market is unswerving." Regarding the future, Bradley said that Swire will always adhere to long-term development and investment in China. In addition to continuously increasing investment in advantageous business areas, it will also actively expand new investment areas.
In terms of core business, the Taikoo Li development project in Xi'an has started construction and will become the largest Taikoo Li project in mainland China upon completion; the retail project in Sanya City, Hainan Province is under development and is Swire Properties' first retail-led resort commercial project; Swire Properties Real Estate successfully bid to acquire a 40% stake in two comprehensive development projects in Shanghai, Yangjing and Qiantan, marking the first time that Swire Properties' residential brand has entered the Chinese mainland market; Swire Coca-Cola has started construction of Suzhou Swire Coca-Cola with a total investment of 2 billion yuan. Coca-Cola’s largest single investment in mainland China to date.
On the other hand, Swire is also exploring new investment opportunities in China. For example, in March this year, Swire reached an in-principle agreement to acquire a controlling stake in Shanghai Delta Medical. The completion of the transaction marked the first time that Swire has obtained a controlling position in the healthcare industry.
A survey conducted by HSBC Bank on the global market shows that nearly 80% of overseas companies surveyed intend to further expand their business scale in the Guangdong-Hong Kong-Macao Greater Bay Area in the next three years, an increase of 10% from the previous year. The complete manufacturing supply chain and huge consumer market are attracting more global companies to focus on the growth opportunities in the Greater Bay Area.
Bradley said that this year marks the fifth anniversary of the official release of the "Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area". From infrastructure, to rules and mechanisms, to talent training, etc., the Greater Bay Area is becoming more and more closely integrated, which has led to Opportunities are becoming more and more abundant. With the commencement of the Swire Julong Bay project in Guangzhou's Pearl River and the announcement of the Swire "Residence Series" hotel in Nanshan District, Shenzhen, Swire Properties continues to explore the development potential of the Greater Bay Area. Swire Coca-Cola has started investing in expanding a new production base in Guangdong, with a planned investment of 1.25 billion yuan. Cathay Pacific has established its Greater Bay Area extension headquarters in Shenzhen to continue to enrich multi-modal transport services by sea, land and air. "Swire hopes to expand more opportunities in real estate, beverages, aviation, healthcare and other fields in the Greater Bay Area." (End)