Insiders Debunk Rumors of Tencent’s Entry into the Real Estate Industry

Jul 26, 2023, 19:33pm2023/07/26 19:33:32 Pandaily

On July 26th, Tencent underwent a business change, with the addition of real estate development and operation as a licensed business project in its scope of operations, and non-residential real estate leasing as a general business project.

Regarding this matter, an insider from Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> explained that the application to supplement the scope of operations with real estate development and leasing is not for engaging in real estate-related businesses in a general sense, but rather to meet the business needs during the development process of the new campus – Guangdong-Hong Kong-Macao Greater Bay Area Project.

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The Greater Bay Area project is centered around Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder />‘s self-use industrial park, and will also include the establishment of public facilities such as office properties, conference centers, and commercial spaces. The development and operation of these ancillary facilities involve external operations, therefore requiring additional qualifications in accordance with regulations.

Furthermore, the recently released 2023 Fortune China 500 list shows that Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder />‘s net profit has decreased by 19% compared to last year, but it still ranks 6th on the profit list with a net profit of over $27.9 billion.