Tagged: ownership

Hong Kong property prices have soared four times in 15 years!

Property prices in Hong Kong continue to remain high, and the dream of home ownership is beyond reach for many young people.

The Hong Kong Legislative Council Secretariat published the “Research Briefing on the Impact of Home Ownership on Hong Kong’s Social Economy” on March 1. According to the “Research Briefing”, among the overall home ownership owners, young people under the age of 35 accounted for only 7.6%. The average age has reached 44 in 2019.

Hong Kong property prices have soared four times in 15 years!

The “Research Briefing” pointed out that Hong Kong property prices soared nearly four times in the 15 years from 2004 to 2019. However, the home ownership ratio dropped to 49.8% in 2019, the lowest in about 20 years. Although the data rebounded slightly to 51.2% in the fourth quarter of last year, it was still lower than the 2004 high of 54.3% and well below the average level of more than 60% in the rich economies.

In the context of severe land shortages and declining affordability of home ownership, the proportion of the young generation under the age of 35 in the overall homeownership has dropped from 22.1% (198,100) in 1997 to 7.6% in 2019 ( 98,200 people).

The report pointed out that young people in Hong Kong cannot keep up with rising property prices based on their work income alone, nor do they have enough financial resources to compete with other buyers in the property market. It is reported that the difficulty of home ownership is one of the sources of hopelessness for the young generation in Hong Kong. Looking at property prices from 2004 to 2019, the figure has soared by 391%. However, the median monthly income of Hong Kong households only increased by 78%, which is far behind the increase in the property market.

At the same time, the proportion of elderly people aged 60 and above among the homeowners of home ownership is 41% (536,000), becoming the main force in home ownership, which has doubled from 21% (192,100) in 1997.

Self-owned properties accounted for “inverted U”

In fact, the home ownership ratio in Hong Kong has shown an “inverted U-shaped” development in the past 23 years. The report pointed out that the ratio soared from 46.7% to the highest 54.3% during 1997-2004, and then stayed at about 53% until 2011, but then fell back to 49.8% in 2019 and 49.8% in the fourth quarter of 2020. 51.2%.

Statistics show that between 1997 and 2004, an average of about 62,000 residential units were completed each year in Hong Kong. Ample supply, coupled with the 52% drop in property prices triggered by the Asian financial turmoil, provides rare home ownership opportunities for first-time home buyers. From 1997 to 2004, the number of homeowners increased by 264,000, of which about half were private housing.

It is worth noting that between 1997 and 2008, the number of Hong Kong households increased by 354,000. During this period, the number of home ownership households increased significantly by 337,000, while the number of tenants increased by only 47,000, and tenants accounted for only 13%. This was mainly due to the abundant housing supply and affordable property prices at that time. This means that 1997-2008 can be described as the best time window for “getting on the bus” in the Hong Kong property market.

Since then, the SAR government has continuously tightened the supply of land and housing, and introduced a series of policies, including stopping land auctions, abandoning the set digital targets for home ownership, reducing the scale of new land development through reclamation and land leveling, and stopping indefinitely. Building subsidized sale houses, etc.

These measures have led to a cliff-like decline in the housing supply in Hong Kong, superimposed on the economic recovery, Hong Kong property prices rebounded sharply during this period, making most of the working class helpless to become renters. From 2009 to 2019, the overall number of households in Hong Kong increased by 335,000, while the number of homeowners only increased by 80,200 during the same period. However, the number of tenants living in public or private housing soared by 250,000, accounting for nearly 75%.

Property market wealth effect

With the continued boom in the property market, self-owned units have become an important source of wealth for wealthy families.

According to the statistics of the Rating and Valuation Department, it is roughly estimated that the market value of private residential properties in Hong Kong has tripled from 1997 to 2019 to approximately HK$12 trillion, which is higher than the 109% increase in GDP in the same period. In 2019, the total value of private residential properties in Hong Kong was approximately 4 times the GDP, which was much higher than 1.6 times that of the United States. The research report pointed out that the wealth effect brought about by changes in property prices can have a significant impact on local consumption and GDP.

In order to help the younger generation to buy a home for the first time, many initiatives have been made in the community to increase the supply of land and housing in recent years. With reference to the development experience from 1997 to 2004, when the supply of buildings is abundant, property prices can fall to an affordable level, and the home ownership ratio can also rise significantly as a result.

According to the latest progress report of the “Long Term Housing Strategy” issued by the SAR government in December 2020, after the public-private housing ratio was changed from 60:40 to 70:30 in 2018, private housing will be The target of building a house will only be an average of 12,900 units per year, which is lower than the actual average annual housing capacity of about 13,500 units in the past 10 years. Housing supply is still very tight.

On the eve of the outbreak of mini led, the LED chip giant suddenly changed its ownership

Huacan optoelectronics, one of the global LED chip giants, suddenly changed its “boss”!


On the evening of January 22, Huacan optoelectronics announced that Zhuhai HUAFA entity Industrial Investment Holding Co., Ltd. (hereinafter referred to as “Huashi holding”) would transfer 14.44% of the shares of the listed company by agreement, further increasing its shareholding ratio to 24.87%, becoming the largest shareholder of the company. The equity transferors are Jing Tian capital I, Jing Tian capital II, Kai le and Shanghai Canrong. The transaction consideration is about 1.85 billion yuan.


Two backgrounds attract attention from all sides


Why has this deal attracted wide attention from LED industry and capital market?


First, there are two backgrounds. One is the industrial background.


With the release of Samsung’s new neoqled TV, the market generally believes that 2021 will be the first commercial year of mini led. According to yole, a market research organization, the global Mini LED display equipment is expected to grow from 3.24 million in 2019 to 80.7 million in 2023, with a compound annual growth rate of 90%.


Industry chain companies have been working hard. In the chip link, San’an optoelectronics announced that the mini led and micro LED chips had been supplied to Samsung in bulk, and Huacan optoelectronics announced the batch delivery of mini led in the fourth quarter of the year before last; in the packaging link, Ruifeng optoelectronics announced that it would spend 400 million yuan to build the mini LED backlight packaging production project, and Guoxing optoelectronics announced that it would invest no more than 1.9 billion yuan to focus on the production of mini led in the next five years LED products; panel link, BOE and csot have built Mini LED panel production lines


Second, equity background.


According to the disclosure, Jing Tian capital I, Jing Tian capital II and Kai Le intend to sell 159 million shares in this transaction, accounting for 12.83% of the total equity of Huacan optoelectronics.

On the eve of the outbreak of mini led, the LED chip giant suddenly changed its ownership

These three funds belong to the well-known institutions to invest in IDG capital.


On the eve of the outbreak of the industry, why did IDG choose to sell the equity of Huacan optoelectronics?


According to people familiar with the matter, IDG capital began to invest in Huacan Optoelectronics in 2008, and then gradually increased its investment. Up to now, it has been 13 years, far exceeding the duration of general funds.


After the completion of this transaction, Yiwu harmony core light equity investment partnership and new sure limited, which are related to IDG capital, still hold nearly 20% equity of Huacan optoelectronics.


Data show that in the LED industry, IDG capital, through years of vertical and horizontal industrial expansion and release of synergy, has formed the LED industry chain layout of “substrate epitaxial chip packaging lighting application” around the two core A-share listed companies of Huacan optoelectronics and MuLinSen, and has become the industry leader with heavy discourse power in the LED industry chain.


At the same time, IDG capital has invested in a series of enterprises in the LED industry chain, including maoshuo power supply (LED lighting driving power supply), yimeixinguang (high brightness LED packaging), Taiwan Ruijie (ledpss), Beixing Technology (LED infrared obstacle avoidance module), bluecrystal technology, etc., forming an industrial cluster effect.


What is the strength of the receiver?


What is the strength of the receiver and how to find it?


According to public information, Huashi holdings is a wholly-owned subsidiary of HUAFA group. HUAFA group is a comprehensive state-owned enterprise group and a well-known leading enterprise in China. It now holds 5 main board listed companies and 2 new third board listed companies.


In 2019, based on the in-depth development of the original industrial investment business, HUAFA group will integrate the group’s entity industrial resources and formally establish an industrial investment cluster with Huashi holding as the core platform. Up to now, we have invested in leading enterprises and high growth innovative enterprises in Huada Zhizao, aixu technology, Youbisheng, Guanyu battery, Anheng information and other industries.


According to further inquiry, in December 2020, Huashi holdings participated in the refinancing of Huacan optoelectronics, obtained 10.43% of the shares of the listed company, and became the second largest shareholder.


The reporter learned that the key person who facilitated the transaction between the major shareholders was Dr. Zhou Jianhui, President of Huacan optoelectronics.


It all started with the 1.5 billion yuan fixed increase financing of Huacan optoelectronics last year


It is understood that in the process of leading the refinancing of Huacan optoelectronics last year, Zhou Jianhui learned that HUAFA Group intends to invest more in the semiconductor industry. At the same time, in addition to the LED chip field that Huacan has worked hard for many years, the fixed increase project also includes the third generation compound semiconductor, and the business further extends to Gan power devices. In the future, the downstream radiation field can expand from consumer electronics to automotive electronics and digital electronics According to the center and other applications.


Accordingly, Zhou Jianhui immediately introduced the situation of Huacan optoelectronics to HUAFA group. After a series of due diligence, the two sides soon reached an agreement on the fixed increase. Finally, HUAFA group subscribed for Huacan optoelectronics. In the process of fixed increase, HUAFA group recognized the management team led by Zhou Jianhui and the development strategy of Huacan optoelectronics, so after becoming a shareholder, it soon expressed the idea of continuing to increase its shareholding.


Zhou Jianhui took the lead in communicating with the old shareholders IDG capital and HUAFA group, persuading the former to sell some shares of the fund that would have been faced with reduction when it was due. Not surprisingly, this idea was quickly recognized by all parties, and it can be said that it was a hit that led to this transaction.


Check the announcement, after participating in the refinancing of Huacan optoelectronics, Huashi holdings expressed the possibility of continuing to increase its holdings.


After participating in the refinancing project of Huacan optoelectronics, the relevant person in charge of HUAFA group once said that the investment in Huacan optoelectronics is based on Huacan’s experience in LED chip field, especially in mini On the other hand, it is based on the need of expanding the industrial layout of the group in the field of chip semiconductors.


According to Huacan photoelectric 2020 semi annual report


According to the public information, Huacan optoelectronics is the industry leader with the second largest LED chip production capacity and the third largest income scale in the world. The mini LED chip products produced by Huacan optoelectronics take the lead in batch entering the market. It is one of the three enterprises with the capacity of mini chip mass production in the world, and actively cooperates with BOE and other international manufacturers in the more advanced micro led field. In addition to the LED chip field, Huacan optoelectronics has raised 300 million yuan to invest in the third generation compound semiconductor field, extending to power electronics, RF, filter and other industries.


“Although IDG has strong strength and has been with Huacan optoelectronics for more than 13 years, as an investment institution, it is inevitable to gradually reduce its holdings to exit. After Huashi holding took over, in fact, it formed a situation in which many parties cooperated to give full play to their respective advantages. “Wang Fang, a researcher at Dongfang securities electronics, thinks.