Hello audience, welcome to “Epoch Focus”, I’m Yu Yue.
Today’s focus: Real estate giants unable to support, “land retreat tide” seen in multiple cities in China; imminent regime collapse? “Red-top businessman” immigrates to Canada; bank reserves hit bottom, man in Shandong triggers alarm during withdrawal.
Previously high-priced land has now become a “hot potato” for developers. Recently, stunning news has emerged in the mainland property market, with developers in first, second, and third-tier cities such as Guangzhou, Beijing, Shenzhen, Chengdu, and Ningbo returning undeveloped land they acquired in earlier years back to local governments.
In this nationwide “land retreat tide,” many well-known real estate giants like Vanke, Yuexiu, and China Resources are involved.
For example, in Guangzhou, Yuexiu Properties returned 4 parcels of land worth a total of 12 billion RMB in just 4 days at the end of August 2024. It is reported that the local government compensated Yuexiu Properties with “land tickets” of equivalent value, allowing them to continue buying land in Guangzhou using these tickets.
Subsidiary of Overseas Chinese Town, Tianchuang Real Estate, returned approximately 105.32 acres of land in the Yangchun Lake high-speed rail business district in Hongshan District, Wuhan. OCOT initially invested over 5 billion to acquire the land, which is currently only 25% developed, but due to the downturn in the Wuhan market, development has stagnated. This land retreat has caused considerable losses for OCOT.
Experts point out that the appearance of the “land retreat tide” in mainland China is not accidental, but a result of multiple factors, with three main reasons:
1. The real estate market has become increasingly sluggish, with many plots acquired by developers at high prices during peak times in the market. Now, with significant reductions in development profits and even risks of losses, developers are unable to commence construction and are forced to return the land.
2. Financing channels for real estate companies are tightening, leading to cash flow constraints. Some developers have to address funding issues first and return undeveloped land to the government to reduce financial burdens.
3. Some land comes with strict development requirements, such as high self-occupancy ratios or short development periods. However, with changes in the market environment, these conditions have become constraints, preventing developers from commencing work.
While developers are retreating land to limit losses, local governments face immense pressure. To alleviate financial pressure, governments can only adjust land by changing its use, lowering development requirements, etc., to “disentangle” and reintroduce it to the market to attract developers back.
In December 2024, Vanke reacquired 3 parcels of land in the Nan station business district in Panyu, Guangzhou, at a base price of 2.88 billion. These parcels were previously unable to be developed due to issues like rail transit planning but were resold after government adjustments.
For instance, after a high-density plot in Nanjing was returned, the local government quickly revised the planning, reducing the floor area ratio to 1.5 and the building height to 60 meters, transforming it into low-density residential land and putting it back on the market.
However, even with government efforts to adjust, the overall real estate market remains bleak.
According to data released by the National Bureau of Statistics of the CPC, from January to November 2024, national real estate development investment decreased by 10.4% year-on-year, with new housing construction area dropping by 23%.
Reports from the Yicai newspaper show that from January to November, the area under construction by Chinese real estate developers decreased by 12.7% year-on-year, with residential construction area down by 13.1%. New construction area dropped by 23%, with residential new construction area declining by 23.1%. Completed construction area decreased by 26.2%, with residential completion area down by 26%.
According to data from the China Real Estate Network, the overall construction rate in 23 key cities stands at 46%, with some second-tier cities as low as 36.9% and several cities in the central and western regions as low as 27.4%.
Industry insiders generally believe that the construction situation in many Chinese cities is extremely dismal, with long periods of non-construction after land acquisition becoming the norm. Following the current trends, the “land retreat tide” in 2025 may worsen further.
As the Chinese economy trend towards decline, the real estate industry is the first to be impacted, with other enterprises unable to escape. Up to now, numerous companies have gone bankrupt, with capital flight intensifying.
Recently, news of the family of former Vice Chairman of China, Rong Yiren, known as the “Red Top Businessman,” immigrating to Canada has sparked public attention.
Many mainland self-media personalities have stated that the Rong family initially intended to leave quietly but a shipping company responsible for transporting their furniture, in a bid to show off their achievements, released videos as advertisements unintentionally revealing the Rong family’s lavish lifestyle.
At the same time, a netizen claiming to be from Shanghai posted a video showing that the Rong family had packed and removed valuable furniture from their mansion in Shanghai, including a large number of items such as redwood, purple sandalwood, and huanghuali. Multiple media reports indicate that the assets moved out by the Rong family were worth at least 200 million RMB.
The news of the Rong family’s migration has become one of the hottest topics on the Internet, as even the elite red capitalists of China are choosing to immigrate, drawing attention to the implications behind it and once again making China’s economy a focus of concern across various sectors.
An article titled “2025, Rong Family Immigrates to Canada” was published by the mainland NetEase account “Luxiaohu.” The article states that the Rong family is a true leading wealthy family and an important representative of Chinese national capital, making their overseas migration of significant symbolic value.
1. Reflecting the plight of red top businessmen, as they rely on the power system, they fear becoming sacrificial pawns of policy adjustments.
2. With China’s economic decline, the Rong family chooses to migrate overseas to avoid risks and ensure the family’s legacy.
3. The departure of a prominent family will affect the confidence of other entrepreneurs and capital, triggering a wider capital outflow and brain drain.
In a review on platform X, commentator Cai Shenkun analyzed: “If Ma Yun’s downfall marked the beginning of the decline of private enterprises, then Li Ka-shing withdrawing funds had long sent a signal. The Rong family immigrating to Canada is groundbreaking news this year, causing great fear among all private entrepreneurs.”
He added, “The Rong family has been a red capitalist engaged in external warfare since 1949, enjoying a distinguished status. Rong Yiren as a former Vice Chairman of the country had won all political and economic benefits for the Rong family. Now, even such a prestigious family has emigrated, what does this mean? In one line, you may not believe in the character of the powerful, but you cannot ignore their insights as the information they receive is beyond your imagination.”
Netizens commented, “The strongest footnote for the ‘collapse of the CCP’ has arrived. The Rong family of hereditary tycoons from China, the Rong family has decamped to Canada, even taking all tables and chairs. How much wealth does the Rong family have, no one knows for sure. Thirty years ago, they spent hundreds of millions to build a temple on Mount Ling in Wuxi, also bought a Vice Chairman of the country. What other reasons could there be for their emigration?”
Another netizen noted, “Rong Yiren’s family remained in the Qing Dynasty, didn’t go to Taiwan during the Republic of China era, and remained silent during the Communist era, but where did they scurry off to Canada during the Xi era? The keen-sensed Rong family must have sensed something ominous!”
Public records show that in 1957, Rong Yiren was known as a “red capitalist” by then Vice Premier Chen Yi of China and later served as Deputy Mayor of Shanghai, Vice Chairman of the National Committee of the CPPCC, and Vice Chairman of the country, holding the status of a national-level leader.
In 1979, to increase the confidence of private entrepreneurs, Deng Xiaoping personally appointed Rong Yiren to establish China Trust Investment Company in Hong Kong, which later grew into the Fortune Global 500 company CITIC Group, becoming the first company on the mainland to obtain a full financial license.
In 1985, Rong Yiren joined the Communist Party, but his Party membership was not made public until his death in 2005. After joining the Party, Rong Yiren three times demanded to quit the Party. The first time was related to the “Tiananmen Square protests,” the second time in 1996 for sharply criticizing the corruption within the CCP, which then-leader Jiang Zemin greatly disapproved of, leading to his resignation. The third time was in June 2000 when he had another dispute with Jiang Zemin, prompting him to request to leave the Party.
On the morning of October 19, 2005, as Rong Yiren was on the verge of passing away, he said, “A party that lost faith, a party not bound by the law, a party estranged from the vast majority of people, a party chasing after money interests, has no hope.”
In recent years, the news of high-ranking CCP officials and wealthy individuals transferring large assets overseas has been constantly emerging. People are puzzled as to how these individuals can easily transfer massive funds from banks while ordinary citizens find it challenging to wire or withdraw money.
Recently, in Binzhou, Shandong, a man encountered multiple difficulties when he tried to withdraw 29,000 RMB from the Haitong branch of Wendong Rural Commercial Bank for business purposes, thinking it should have been a simple task.
After stating the amount he wished to withdraw, the man was subjected to multiple interrogations by bank staff, including questions about his sources of income and the purpose of the withdrawal. Shockingly, the bank not only reported to the police but also requested a thorough investigation into all his information.
The man was infuriated and recorded a video complaining about the bank’s conduct. In the video, he said, “I want to withdraw 29,000 RMB, but you reported it to the police. Not only did you investigate my information, but you also called one of my clients, who now no longer trusts me, causing me significant losses.”
He emphasized that it was his own money and that withdrawal should be his right. The bank’s actions not only caused him trouble but also disrupted his business.
The incident sparked outrage online, with many netizens condemning the bank’s behavior. The staff at the Chengkou branch of Wendong Rural Commercial Bank responded, saying that withdrawals exceeding 20,000 RMB require advance reservations due to “financial tightness before the New Year,” as they fear funds may not be readily available. The staff also claimed that verifying information was to “protect the safety of customer funds.”
However, this explanation did not placate public questioning. Many netizens believe that such restrictions only indicate that the bank is “short of money,” with the response from the staff inadvertently confirming this point, attempting to alleviate their stress by restricting withdrawals to alleviate pressure.
The so-called “protection of customer funds safety” was merely an excuse.
One netizen pointed out, “All the talk about protecting customer funds safety is just an excuse! The wealthy can transfer how many billions without anyone bothering, while regular folks get interrogated for withdrawing one or two thousand. The key issue is that the money the wealthy transferred may not even be theirs, whereas the money ordinary people withdraw is definitely theirs.”
In recent years, similar incidents have frequently occurred in China. In November 2024, a woman in Shenzhen was reported to the police and taken to the police station for questioning after transferring 200,000 RMB.
A woman in Xingtai, Hebei, faced difficulties and was required to provide detailed information when withdrawing 25,000 RMB to treat her husband’s illness, with the bank even making calls to the hospital for verification. Dissatisfied, the woman stated, “This is my money. Even if it’s not for my husband’s illness, can’t I withdraw my own money?”
The bank’s actions angered depositors, with a video showing a man in Zhejiang encountering resistance from bank tellers when attempting to withdraw 25,000 RMB at the counter. The teller questioned the purpose of the withdrawal. The man argued that the money was his own and how he uses it is his personal privacy. Frustrated by the man’s response, the teller refused to let him withdraw the money. The man, incensed, sat in front of the counter and made a firm statement, saying, “I can’t withdraw more, can I not withdraw less?” He then told the teller to give him 1 RMB, which the teller did, and then asked for another 1 RMB. He told the teller, “I’ll take 1 RMB at a time, see if you let me withdraw.” After this stand-off, the teller, feeling helpless, apologized. Eventually, the bank’s leadership intervened and provided the man with the full amount he needed.
Netizens commented that while it was satisfying to watch, the teller wasn’t to blame as they were just following orders from higher authorities. The real culprits were behind the scenes, tormenting low-level staff and ordinary citizens.
Some netizens questioned these actions as merely indicating that the bank is short of funds, with one questioning, “With so many depositors and so much savings in China, where is all the money going?”
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