Asset Disruptors in the Era of Stock Assets: How China Resources Vanke’s ‘Financial + Industry’ Model is Reshaping Commercial Value

Currently, China’s commercial real estate market has fully entered the “stock era,” with developers becoming increasingly cautious about launching new projects. At the same time, an increasing number of assets are being offered for sale at discounted prices, including older properties in core urban locations that have significant potential for improvement. Many commercial projects located in central urban areas and facing difficulties are now being sold at discounted rates. While these properties may seem like “non-performing assets,” they actually hold enormous potential for value transformation. Whoever can revitalize these assets holds the key to success in the stock-era market.China Resources Vanke’s ‘Huanyue’ , a property value restoration platform under the China Resources Asset Management umbrella, is leveraging its unique “Financial + Industry” dual-driven model to focus on risk control and asset value restoration. As a result, it has become a highly regarded asset disruptor in the market. Not only does it possess full-cycle asset management capabilities, but it has also demonstrated through actual cases that, with precise positioning, flexible operations, and diversified exit strategies, even problematic assets can be rejuvenated and their value realized.Whether investors are seeking undervalued opportunities or project owners are exploring asset disposal and revitalization paths, Huanyue is building trust with its professional expertise, offering every valuable asset the possibility of being reborn.

Reconstructing Asset Value: The 15-Year Journey of Value Restoration.The Huanyue brand was born in 2009 and was primarily responsible for the operation and value enhancement of project assets. The brand’s commercial projects were positioned as community-based shopping centers, mainly targeting family consumer groups. In October 2010, China Resources Huanyue opened its first national store in Nanshan, Shenzhen. The project spanned over 60,000 square meters and was originally one of the “unfinished” projects urgently needing resolution in the Nanshan area.In 2013, China Resources Venture acquired TESCO’s Chinese projects, including Qingdao Le Du Hui and Fuzhou Cangshan Le Du Hui, among others. Subsequently, Huanyue expanded into Hefei and Shanghai, revitalizing and transforming several previously stagnant or troubled projects.Throughout this process, Huanyue gradually cultivated a full-cycle management advantage, including pre-investment evaluations, planning and development strategies in collaboration with other departments within the group, as well as proactive post-investment management and operations. The company also emphasized the exit and value release of mature assets, ensuring risk control while continuously improving asset operations and creating sustainable value.In 2016, Huanyue launched its cross-regional strategy, expanding into cities such as Qingdao, Xiamen, Anshan, and Fuzhou, forming an initial national commercial network.

By 2020, Huanyue officially became part of the China Resources Group’s Industrial Finance sector, becoming a key platform focused on real estate value restoration and operational restructuring.China Resources Asset Management Ltd. covers a wide range of services, including asset management, non-performing asset acquisition and disposal, operation management of “two non” and “two asset” businesses, distress resolution for troubled institutions, and industrial-financial mergers and acquisitions. Through methods like restructuring, trust management, and mergers, the company actively revitalizes inefficient non-performing assets.Empowered by financial resources, Huanyue has actively promoted market-driven business expansion, gradually diversifying its product offerings. It has successfully extended its business model to include real estate funds and mergers and acquisitions, demonstrating strong capabilities in resource integration and model innovation.In 2021, Huanyue brand announced a strategic focus on four key sectors: community commercial centers, outlet malls, logistics real estate, and long-term rental apartments. In the same year, with the signing of the Changsha Lugu Huanyue OUTLETS, the brand underwent a comprehensive upgrade, further consolidating its core capabilities in the field of stock real estate value reshaping.Currently, Huanyue has formed three main product lines:Community/Regional Shopping Centers: Focused on young families, aiming to create “family-friendly community commercial hubs.”Urban Outlets: Represented by Changsha Huanyue OUTLETS, offering high cost-effective consumer experiences.

Creative Commercial Office Spaces: Exploring the integration and renewal of stock office buildings and commercial spaces to meet the needs of new economy enterprises.Additionally, Huanyue has also ventured into long-term rental apartments, logistics parks, digital centers, and other diversified real estate sectors, showcasing the extensibility and cross-sector capability of its operational model.”Standard Foundation, Local Adaptation”: Cost Control as the Key to SuccessIn the “stock era” of China’s commercial real estate market, China Resources Huanyue stands out by applying a “Standard Foundation, Local Adaptation” methodology. Unlike the large-scale replication model of chain shopping centers, Huanyue has achieved its “turning assets into gold” strategy through the standardization of operations and localization of content. This approach ensures that each project maintains operational consistency while creating emotional connections with the local community. It strikes a dynamic balance between scaling expansion and fostering a sense of local belonging.In terms of standardization, Huanyue has established a comprehensive operational and product management system. Supported by information systems and technical assistance from its headquarters, the company ensures high efficiency and coordinated operation across various stages, including design, construction, cost management, and property management.

This approach lays a solid foundation for rapid renovation and value enhancement.However, what truly brings projects to life is Huanyue’s exceptional ability to adapt locally. To avoid the cookie-cutter approach, the company deeply integrates local consumer habits, ensuring that the spatial design, marketing campaigns, and brand introductions are tailored to the community. For example, the Fuzhou Cangshan Huanyue introduced local representative restaurant brands like Zhu Fuguo, while the Guangzhou Tianhe Huanyue project partnered with Donghu Restaurant. These high levels of adaptation have transformed the commercial space into a community hub that feels both welcoming and familiar.Cost control is another significant advantage of Huanyue. Leveraging China Resources Asset Management’s AMC (Asset Management Company) license and expertise in distressed asset disposal, Huanyue can acquire potential assets at lower costs. This approach results in “low acquisition costs” that are notably lower than the market price of land or new developments. On the operational side, Huanyue adheres to a “one-store, one-strategy” principle, focusing on “cost adaptation and efficient flexibility” to ensure “low operational costs” while maximizing asset value and managing risks effectively.Targeted Positioning, Flexible Leasing: Saving Troubled Projects.During China’s golden age of residential development, many developers built large-scale commercial spaces alongside residential projects to enhance the value of their properties. However, many developers lacked the expertise to operate these commercial spaces effectively, resulting in malls with subpar facilities and poor tenant mixes that didn’t meet the needs of local consumers.

These projects often became “non-performing assets” on developers’ balance sheets.This is where Huanyue comes in. With over a decade of experience in value restoration, the company has accumulated extensive expertise in revitalizing such assets.Shanghai Pujiang Huanyue: A Model of RevivalOne of Huanyue’s flagship projects, Shanghai Pujiang Huanyue, serves as a model of successful revitalization. Before joining Huanyue, the project changed ownership twice. Initially developed by Overseas Chinese Town Group as the O’mall Overseas Chinese Town Shopping Center, it was later sold and renamed Xintian 360 Plaza. In 2022, it was integrated into the Huanyue portfolio.Upon taking over, Huanyue focused on the core customer base within a 3 km radius, launching the slogan “Happiness from the Heart”. The revitalized space offered a sophisticated ambiance with vibrant nightlife and social settings, appealing to social, family-oriented, and young customers. In line with Huanyue’s core philosophy, this created a “community-style shopping center” that led lifestyle trends.Key adjustments included increasing the proportion of dining and lifestyle tenants, which now account for 42% and 22% of the space, respectively. This boosted the nighttime economy and refined social scenes. Additionally, Huanyue replaced inefficient brands, like Carrefour, with high-traffic names such as Hema Fresh, Dongsheng BBQ, Starbucks, and Miniso. Specializing in unique dining brands also became a major driver for project performance, transforming it into a leading commercial space in the region.

The physical upgrades were equally impressive, with the exterior and interior being revamped to improve the center’s visibility and attractiveness. New escalators were added, and the mall’s accessibility was significantly enhanced.Even more noteworthy, in June of this year, Shanghai Pujiang Huanyue was approved for a real estate-backed ABS offering, raising 670 million yuan. This milestone not only marks a breakthrough for Huanyue in terms of financial innovation but also provides a replicable model for similar projects. The real estate ABS issuance is seen as a key step toward bridging Huanyue’s operations with broader financial markets, reflecting the company’s strategic ambition to evolve like international investment firms such as Blackstone.Fuzhou Cangshan Huanyue: Reshaping a Struggling Mall.Fuzhou Cangshan Huanyue, formerly Pu Shang Le Du Hui Shopping Plaza, was the first commercial project in the Fuzhou Jinshan area. Despite its prime location and early market advantage, it fell into a state of stagnation and lost customer traffic after nearby developments, like Wanda Plaza and Aegean Sea Shopping Mall, opened.In 2016, Le Du Hui underwent a large-scale transformation, including a redesigned atrium, the addition of external fire exits for children’s spaces, and an outdoor “sunlight play area”. By 2018, it was rebranded as Fuzhou Cangshan MixC, positioning itself as an “urban refined living space” with 142 brands across 40,000 square meters.

Fuzhou Cangshan MixC: Revitalizing Low-Efficiency Malls Through Strategic Positioning.The Fuzhou Cangshan MixC, which opened in September 2019, initially achieved impressive results, with sales surpassing 8.5 million yuan and over 80,000 visitors on its opening day. However, after a brief surge in foot traffic, the mall’s performance sharply declined, leading to an increase in vacant stores just one year later. This was primarily due to a vague positioning and a mismatch between the mall’s brands and the actual needs of the local community, ultimately resulting in low customer traffic and tenant exits.In July 2021, the Huanyue team took over the mall, shifting the focus back to “community commercial space” and rebranding it as Fuzhou Cangshan Huanyue. The team conducted in-depth market research in 14 surrounding communities to gather real-time feedback, launching a transformation plan that abandoned the original mix of business types in favor of a model centered around the real needs of the local residents. This pivot introduced a strategy of offering “high-value dining + night-time entertainment.”The transformation strategy was a success, as the Huanyue team targeted popular food and beverage brands, entertainment options, children’s experiences, and digital retail, all while creating a distinct identity compared to neighboring properties. Notably, the introduction of Zhu Fuguo, a local culinary phenomenon, along with a variety of barbecue and hotpot options, helped define the dining experience.

Zhu Fuguo became the highest-profit store in the Fuzhou Cangshan Huanyue mall, drawing in massive foot traffic.Entertainment options such as Bei Dou KTV, E-sports Bee Net Cafe, Zhi Chao Cinema, KK Pool, and Shuhua 24-hour Gym further complemented the night-time dining scene, forming a complete entertainment ecosystem. The first floor also saw a revamp to cater to the “Instagrammable economy” and the new consumer habits of non-standard commercial spaces.Today, Fuzhou Cangshan Huanyue is no longer a “follower,” but a market leader that has successfully carved out a niche in a fiercely competitive environment, standing as a shining example of asset revitalization.Shenzhen Nanshan Huanyue: A Revitalization Model for Troubled Projects.As Huanyue’s first project, Shenzhen Nanshan Huanyue was originally Nanshan Shopping Plaza, one of the district’s most infamous unfinished developments. Faced with complex disputes and massive renovation challenges, the project seemed almost impossible to salvage. However, through consistent upgrades and meticulous management, the Huanyue team successfully transformed it into a “third living space” loved by families.After Huanyue took over, the project underwent a major transition from a traditional community department store to a community shopping center. By focusing on the needs of family-oriented and leisure-seeking consumers, the team optimized the tenant mix and the spatial environment, aiming to create a high-quality “third living space” for local residents.

In terms of tenant adjustments, the project significantly increased its proportion of dining and lifestyle-related businesses, with dining accounting for 41% and service-oriented businesses reaching 20%. These changes helped build stronger loyalty among family customers. The basement (B1) level was repurposed after China Resources Vanguard supermarket vacated, making space for casual dining and lifestyle brands. The first floor was optimized to improve the product mix, and the second floor added an outdoor tea-drink area to create a social space. The third floor focused on family-friendly entertainment and dining brands, while the fourth floor was transformed into a global food court to further boost foot traffic.To maintain novelty, Nanshan Huanyue consistently introduced around 20% new brands each year, including regional first-stores and unique brands. The space also underwent significant upgrades, including themed landscaping and lighting for the east square and the second-floor outdoor area, full LED screen updates, and improved facilities like restrooms and escalators, enhancing customer experience.In terms of marketing, the mall hosted annual food festivals and partnered with Mi Bookstore to organize book signings with celebrities such as Six Little Monkeys and Lu Sihao.

It also collaborated with external organizations to host major events such as the Greater Bay Area Fighting Championship and King of Glory E-sports Tournament, boosting customer interaction and amplifying the mall’s presence in both physical and digital spaces.”Finance + Industry”: A Unique Asset Management Platform.As China’s commercial real estate enters the stock-era, the ability to revitalize existing assets and enhance their value has become a critical issue for the industry. Huanyue has built a unique competitive edge through its specialized “finance + industry” model, creating a full-cycle “fundraising, investment, management, exit” process.In a recent conversation with Winshang, China Resources Asset’s Deputy General Manager Wang Jianqiang discussed how Huanyue successfully operates within this closed loop. He emphasized the importance of focusing on value restoration in the stock market, stating that the future of Chinese commercial real estate lies in deepening existing assets, especially as first-tier cities become saturated and urbanization slows down.Huanyue began focusing on revitalizing distressed assets in 2010 and has accumulated nearly 15 years of experience in this field.

The adjustments in the real estate market over the last few years have opened up new opportunities for specialized operators like Huanyue. Many developers, having relied on high leverage and rapid turnover models, accumulated significant risk during the last cycle. Today, many quality assets are facing liquidity challenges, even when discounted, and some core city shopping centers struggle to find buyers. This situation presents structural opportunities for platforms with strong industrial and financial capabilities.In response to current market conditions, Huanyue is actively seizing the opportunity to reconstruct asset prices, focusing on high-potential commercial properties in prime locations in cities like Shanghai, Shenzhen, and Guangzhou. Their approach emphasizes asset value restoration and operational enhancement under controlled risk, rather than simple scale expansion.With experience in distressed asset acquisitions, complex project restructuring, and real estate fund management, Huanyue is establishing a truly cross-cycle asset management platform, continuously strengthening its position in the stock market.