Ning Gaoning

Ning Gaoning is a well-known manager in Chinese business circles who has successively headed China Resources Group, COFCO and Sinochem Group. During the period of cooperation between Vanke and China Resources, both Wang Shi and Ning Gaoning expressed approval of the relationship between the two sides. In 2000, Shenzhen SEZ Development Group (Shentefa) transferred the more than 50 million state-owned legal-person shares of Vanke it held to China Resources, which thereby became Vanke’s largest shareholder; out of a high degree of trust in Wang Shi’s team, China Resources largely adopted a hands-off approach to governance, forming a pattern of “major shareholding without control, active without interference, mutual trust to promote development”, and the return on net assets generated by Vanke also rose steadily.

Ning Gaoning also made moves in commercial real estate. According to a 2010 report by Caixin Online, COFCO under Ning Gaoning’s leadership had planned more than 20 Joy City projects across the country with differentiated positioning: Xidan Joy City focused on a young, fashionable shopping concept, while Chaobei Joy City focused on one-stop services for community life. In November 2009, COFCO announced plans to invest more than 70 billion yuan in large commercial real estate projects centred on “Joy City”, with a planned total area of about 8 million square metres. According to COFCO Property, Chaobei Joy City’s occupancy rate already exceeded 90% at the time, and Xidan Joy City had been able to give back to the group since 2008.

The same report also noted that China Resources Group’s The MixC was likewise the work of Ning Gaoning, then head of China Resources Group, and was regarded as the most successful example of applying the Hong Kong model. China Resources adopted a “residential development + held properties + value-added services” model, operating high-end properties while developing housing, and achieving a virtuous cycle between commerce and property through urban complexes such as The MixC. In 2008, China Resources Land Limited’s rental income from its leasing business was close to HK$1 billion, accounting for 11% of the company’s operating revenue for the year; China Resources Land’s net debt at the time was HK$15.6 billion, with an average interest rate of 3%, and net cash inflow from its rental properties was already able to cover the interest payments corresponding to the company’s net debt. The report cited Wang Yin as saying that China Resources aimed for commercial real estate’s share of overall profit to grow from the then 18% to 40% in five years.