Shenzhen economic zone fails to lure HK property developers
Despite the hype that accompanied the economic zone development in Shenzhen, Hong Kong property tycoons were not lured to bid in the recently-completed land auction. The land sale document revealed that only Hong Kong-listed firms holding a minimum market value of USD 5.16 billion were allowed to compete in the bidding. Only two mainland bidders participated in the auction. China Resources Land Ltd ultimately won over Shimao Property Holdings Ltd with a USD 1.8 billion bid for the commercial site.
Vice President of the Authority of Qianhai Shenzhen Hong Kong Modern Service Industrial Corporation Zone of Shenzhen, Lin Hong, said there were developers from Hong Kong who initially expressed their interest. "There were Hong Kong developers who were very interested and have been in contact with us, but they dropped out in the end and we don't quite understand the situation," he said.
Reuters reported that the lack of Hong Kong developers denotes that investors were cautious. The Chinese government is building a USD 45 billion economic free trade zone in Qianhai Bay in Shenzhen.