According to a report from the Wall Street Journal,'China’s real-estate developers have been known for taking big risks and then hedging them, sometimes in unusual ways".
"At the moment they seem to be doing a bit more hedging than usual—putting their money in an array of businesses from banks to beverages".
"Guangzhou-based Evergrande Real Estate Group, is splashing out on bottled water. Earlier this month it unveiled a new business line—“Evergrande Spring”—which will distribute spring water from Changbaishan, or “Ever White Mountain” in northeast China.
The property developer, led by billionaire Xu Jiayin, is also looking at setting up a drinking-water system to bring the natural mineral water into some of its real-estate projects, hoping this will add value, according to the firm.
Evergrande, which is better known for backing the only Chinese soccer team to experience international success in recent memory, said Chinese people’s heightened awareness about health issues prompted its decision to invest in clean drinking water".
"Shenzhen-based developer China Vanke meanwhile, has taken an 8% stake in Anhui-based lender Huishang Bank Corp ahead of the bank’s IPO in Hong Kong earlier this month Vanke said it wanted to “better meet its customers’ demands for financial services and boost the firm’s competitiveness in providing overall housing services.”
The move by the market leader could have a knock-on effect.
“It’s still very preliminary but I’m sure it’s got other developers thinking about branching beyond their core business,” said Johnson Hu, an analyst at CIMB Securities.
