New World optimistic about mainland potential

Optimistic about development potential in the Chinese mainland, Hong Kong-based conglomerate New World Development Co Ltd is looking to tap into opportunities created by the 15th Five-Year Plan (2026-30), said a top executive of the company.

Looking ahead, there are abundant opportunities related to the top national development plan, reflected by the measures to boost consumption, high-quality development and new quality productive forces, said Huang Shaomei, executive director and CEO of New World Development, during a recent interview with media in Shanghai.

"This year marks the beginning of the 15th Five-Year Plan, and this is the first time that the Hong Kong Special Administrative Region has been included in the plan, as it explicitly supports the SAR in better integrating into and serving the overall development of the country," said Huang. "As one of the Hong Kong enterprises that has the deepest understanding of the 15th Five-Year Plan, we will move swiftly to seize related opportunities, including property development in the Chinese mainland."

New World Development possesses nearly 1.4 million square meters of land reserves in Hong Kong. As of the end of 2025, the group had total land reserves of about 2.89 million sq m of gross floor area in the Chinese mainland, including some 1.55 million sq m for residential use.

"I personally feel strongly that, led especially by major cities, the property market in the Chinese mainland is recovering, and supportive measures introduced by cities will further consolidate the recovery," Huang said.

Over the years, the group has been focused on core cities in the Yangtze River Delta region and the Guangdong-Hong Kong-Macao Greater Bay Area. The two regions' strengths in industry and population have secured projects there with stronger consumption momentum and risk resistance capabilities, providing a solid foundation for the group's performance.

Currently, Chinese mainland and Hong Kong markets each contribute about 50 percent of New World Development's revenue, while rental income and property sales each account for roughly half of the group's profits.

Given the promising outlook for the Chinese mainland, Huang expects the market to contribute 70 percent of the company's total project volume and new developments over the coming decade, with Hong Kong accounting for the remaining 30 percent.

The recovery of Hong Kong's economy in sectors including real estate, finance, retail and tourism also presents significant opportunities.

"New World Development is committed to strengthening our competitiveness in finance, retail, services and real estate. We also aim to develop high-quality and competitive projects," Huang said. "The country's overall development strategy is not focused solely on a specific industry or sector. Considering Hong Kong's unique strengths in the legal and financial sectors, the SAR should play an important role, a role that both creates connections with other cities and maintains its uniqueness."

Horace Lam, CEO of K11 Hong Kong, said the two K11 shopping malls have benefited from Hong Kong's role as a gateway for introducing international brands to China and helping mainland brands expand globally.

"For international brands, Hong Kong is a testing ground for brands entering the mainland. Through testing market reactions, validating operating models and building consumer reputation in Hong Kong, brands lay the foundation for further expansion into the mainland market."

"In the meantime, thanks to its superior geographic location and international business environment, Chinese mainland brands take Hong Kong as a channel for internationalization," said Lam, adding that the K11 Art Mall has attracted Chinese mainland and international brands to launch their first stores in Hong Kong.

wang_ying@chinadaily.com.cn