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Hi welcome to Gabelli TV. I’m Liang Xianda, head of Hong Kong for Gabelli Fund.
Because of coronavirus, the Chinese government had asked most of the Chinese companies to shut down their office space to further prevent the virus from spreading between employees. On Monday, Feb 17th, most of the companies were allowed back to work. Let us take you to the street to see what’s happening.
We are in front of Tencent’s headquarters in Shenzhen, China. On Feb 17th, Monday, the government has allowed people to go back to work. However, most companies are still encouraging their employees to work from home. As you can see here, not that many people are coming in and out.
Most of the public gathering areas and retail shops remain closed until further notice from the local government. Restaurants and coffee shops are mostly take-out only. Under the current situation, some commercial real estate developers chose to waive one month rent to their clients in order to help them through which will be reflected on their Q1 2020 earnings. We expect most of the Chinese real estate developers will see a significant shortfall on their revenue, which could present a potential buying opportunity.
Right now we are at the Mix City, one of the most popular shopping outlets in Shenzhen, mainland China. This outlet is owned by China Resources Land, a Hong Kong-listed public company. As you can see here, all the public gathering areas, coffee shops, restaurants, luxury retail (shops) remain closed until further notice from the local government.
Not only are companies running into difficulties on their daily operation, the coronavirus has affected everyone’s lives in China. To further prevent the virus from spreading between residential communities, the Chinese government has enacted a strict control across every residential compound in mainland China.
We are at one of the residential community compounds in mainland China and here is the front door of the community. As you can see, when people get in, they will have to sign in and check their temperature. For residents, the community will give you a pass to prove that you are actual resident to get in. For all the nonresidents, the community will not let you get in. As you can see here, the Chinese government really encourages noncontact delivery which means the delivery guys will drop off your stuff at the shelf and you come out to pick it. All in an effort to reduce human contact.
Thanks for watching Gabelli TV. We at Gabelli will continue to monitor the situation for you in China. If you would like to know more, please visit www.gabelli.com.
