Liu Yonghao, a member of the National Committee of the Chinese People's Political Consultative Conference and chairman of the New Hope Group, embodies the optimism often associated with Sichuan people. At 74 years old, he maintains black hair, a robust physique, and often wears cloth shoes. Liu has started paying closer attention to his diet, opting for lighter dinners with less oil and salt, and walks 10,000 steps daily. "I used to catch colds frequently, but now I hardly ever get sick and have no major health issues. My physical check-up results are all positive, including heart, brain, and weight indicators," he stated.
Currently, the market is experiencing volatility, particularly impacting the New Hope Group, which is deeply affected by the hog cycle. "We have made profits, earning billions annually, but my lifestyle remains unchanged. We have also faced losses of billions during the hog cycle, yet I still eat and sleep well. Whether receiving honors or facing setbacks and pressures that make senior executives anxious, I continue to sleep soundly," Liu remarked.
However, he openly acknowledges that the economy is transitioning towards high-quality development. Some overcapacity exists in Chinese manufacturing, and many entrepreneurs in traditional industries face pressures, difficulties, and even anxiety. Despite this, Liu remains hopeful.
During the 2026 Two Sessions, Liu focused on several key areas: advancing "AI + animal husbandry," developing rural revitalization leaders, strengthening support for agricultural enterprises expanding globally, encouraging traditional industries to upgrade, and stabilizing the real estate market. Regarding real estate, he proposed introducing a package of robust policies involving coordinated efforts from finance, taxation, and housing departments. Suggestions include further reducing down payments and mortgage rates, offering temporary tax exemptions on property transactions, optimizing urban planning by cutting the proportion of new commercial land, supporting the revitalization of existing commercial assets, refining policies for converting commercial properties to residential use, and moderately easing restrictions on apartments for school enrollment and residency registration. "The real estate sector underpins consumer confidence and stabilizes a pillar industry of the nation," he emphasized.
The property market continues to face downward pressure. This year's Two Sessions reiterated the goal of "stabilizing the real estate market," aligning with the 2025 Central Economic Work Conference. Given this context, why did Liu propose relaxing restrictions on apartments for school enrollment and residency? During the Two Sessions, he addressed this question.
Liu explained that as president of the Sichuan Chamber of Commerce, he visited member enterprises around the Spring Festival. These include industries ranging from manufacturing and agriculture to smart technology and robotics, with some involved in real estate. The sector is under significant transformation pressure, and falling prices have led to inventory issues. His surveys revealed that a substantial portion of homeowners' wealth is tied up in property. When housing values rise, people feel wealthier and increase spending on items like dining and leisure; however, price declines cause concern and prompt tighter budgets, with many preferring to save as a precaution.
Real estate concerns not only developers and the government but also the general public. Restoring consumer confidence is crucial, and many hope their assets will not depreciate or will stabilize, aligning with national objectives for steady development, a stable property market, economic growth, and employment. Research indicates that apartments have experienced sharper price declines due to several factors: their typically smaller sizes, primary purchasers being young, newly employed individuals, and less favorable policies regarding school enrollment, residency, utilities, taxes, and loans compared to standard residences. While differential treatment was justified under previous purchase and sale restrictions, the current gap is overly wide. Uniform policies for apartments and standard housing would benefit young and low-income workers, promoting fairness.
Regarding New Hope Group's real estate ventures, Liu clarified that the company's involvement is limited. Initially, properties were acquired for farming and feed production on city outskirts. As urban expansion necessitated relocating these operations, the group passively entered real estate. Their projects are small-scale, concentrated, and less impacted by the market downturn. For seven to eight years, the group has maintained green metrics under the "three red lines" policy and remained profitable. Strategies include prudent scaling back and focusing on quality housing in select areas like Chengdu, emphasizing better construction, environments, and overall value, in line with national "good housing" initiatives. However, manufacturing remains the core business, with real estate constituting only a minor share of the group's substantial revenue. The focus remains on solid transformation and enhancing productivity through technological upgrades in agriculture and food sectors.
On global expansion, Liu highlighted New Hope's over three-decade experience operating dozens of factories abroad. Success factors include hiring local staff at competitive wages, respecting cultural and religious practices, and promoting quality and corporate values. While domestic traditional industries face intense competition and low profits, overseas ventures show strong competitiveness and higher profitability, sometimes by 10% to 100%. Chinese manufacturing gains increasing international recognition, with Southeast Asia as a key market where product quality and capabilities are well-regarded.