Hangzhou Binjiang Real Estate Group Co., Ltd.

Hangzhou Binjiang Real Estate Group Co., Ltd. (“Hangzhou Binjiang Real Estate Group”) is a private real estate developer. Against the backdrop of a continuously declining property market and defaults at many private developers, private developers’ overall ability and willingness to acquire land fell markedly. According to data released by the market research firm CRIC, among the top ten developers by value of newly added land in January to October 2023, Hangzhou Binjiang Real Estate Group was the only private company, while former heavy land buyers such as Country Garden Holdings and Sunac had all dropped off the list; the developers acquiring large volumes of land in the same period were large, nationwide central state-owned enterprises such as COLI, China Resources Land and China Merchants Shekou.

This pattern is linked to structural changes in the land market in recent years. Before 2021, annual land investment by private developers among the top 100 by sales had held at around 2 trillion yuan, falling to 1.7 trillion yuan in 2021; according to CRIC statistics, the figure plunged to less than 250 billion yuan in 2022, down 88% year on year; in the first half of 2023, land purchases by private developers among the top 100 came to less than 60 billion yuan, down a further 28% year on year. Meanwhile, central and other state-owned enterprises replaced local state-owned capital as the main land buyers, with their share of land purchase value rising from 37% in 2022 to 56%.