Tang Zijia: Grounded in China, Gazing Toward the Future

18-10-09

　　Editor's Note: They are the helmsmen of enterprises, leading their companies forward with determination; they are the driving forces behind the development of the real estate industry, working tirelessly to build a better life. Leju Finance launches the "Insight" high-end interview series to hear them share their lives and business management philosophies. This issue's guest for 【Insight】 is Mr. Tang Zijia, Vice Chairman and Executive Director of Tangchen Group.
　　Classic pure black eyeglass frames, a shirt paired with a sharp suit—this has become Tang Zijia's standard outfit when going out.
　　When asked for advice for young people, the young master who has led Tangchen Group for 14 years smiled and said that as a post-80s generation, he still considers himself young.
　　This young man, born with the halo of "eldest son of the Tang family," has a mother who is Taiwan's Golden Horse Award-winning actress Xu Feng, known as a "generation heroine," and a father, Tang Junnian, known as the "first developer of Pudong."
　　Since taking over the family business at 24, from bearing heavy responsibilities to strategic planning, he embodies a perfect blend of youthful fashion and mature steadiness. Today, Tang Zijia is more commonly recognized as a successful entrepreneur.
　　When facing pressure, Tang Zijia usually relaxes through sports and contemporary art. He frankly says that aerobic exercise and golf balance the mental exertion, and his love for contemporary art gives him moments of mental relaxation.
　　As one of the earliest investors in Shanghai Pudong after the reform and opening up, and a major real estate developer in Pudong, Tangchen Group has long been closely linked with Pudong's development. On September 28, Leju Finance exclusively interviewed Tang Zijia, Vice Chairman and Executive Director of Tangchen Group, to hear about the deep connection between Tangchen Group and Pudong.

Pudong's "Metamorphosis"

　　"Night Shanghai, Night Shanghai, you are a city that never sleeps, lights shining, car sounds, singing and dancing in harmony..." When thinking of Shanghai, this song naturally comes to mind, with lights, cheongsams, and performances depicting the prosperity of the city.
　　However, at that time, the dazzling lights and bustling traffic of Puxi had nothing to do with Pudong just across the river. Opposite the Bund, known as the 'ten-mile foreign concession,' stood 52 classical revival buildings of various styles, while Pudong was a patchwork of farmland and reed fields; as the steamboat whistles on the Huangpu River and the clock chimes of the Bund sounded repeatedly, Pudong responded with the sound of wind blowing through wheat fields.
　　Everything began to change in 1990, the year when the development of Shanghai Pudong officially started. Two years later, the story between Tang Zijia's family and Pudong began.
　　In 1992, Tang Zijia's father Tang Junnian and mother Xu Feng responded to the call of the central and Shanghai municipal governments to develop Pudong and began investing in Shanghai. Tangchen Group also started aggressively acquiring and developing multiple properties in Pudong.
　　At that time, a popular saying in Shanghai was: "Better a bed in Puxi than a house in Pudong." However, Tangchen Group's founder Tang Junnian foresaw Pudong's development potential with a forward-looking strategic vision.
　　Public records show that during the 1990s, Tangchen Group, as a pioneer, built a series of "first" supporting facilities alongside Pudong's development: the first five-star hotel—the Jinjiang Tangchen Intercontinental Hotel; the first foreign-related high-end business center—the Tangchen Center; the first five-star foreign-related office building—the Tangchen Financial Building; Pudong's only centrally located Tangchen Golf Course, along with phased construction of Tangchen Golf Villas nearby.
　　With the continuous and steady advancement of Pudong's development, Pudong has undergone tremendous changes, from patchwork farmland to towering skyscrapers, from a remote countryside to a bustling urban area, becoming the world-renowned "Oriental Pearl."
　　Besides the increasingly grand buildings and dense transportation, Tang Zijia also pays attention to the development and changes in Pudong's economic structure. He believes Pudong's economic transformation is ahead of the curve. "Initially, Pudong started with land consolidation and real estate development; now it is an international financial center, logistics hub, and even a cradle for many high-tech industries."
　　Moreover, through communication with Tangchen's property owners, he has observed the development of Pudong's culture. "Pudong's education and cultural arts development are also among the nation's forefront. Many of our clients, as their personal wealth grows, have become collectors of artworks and cultural relics, reflecting a high level of cultural development."
　　Tang Zijia points out that Pudong's development is the result of embracing diversity. "You can see the gathering of talents from various places; Pudong attracts more new Shanghainese than Puxi. These people come not only from all over China but also from various countries."

Working Together to Create the Future

　　Looking back on Tangchen Group's 26 years of development in Shanghai, what Tang Zijia finds most unforgettable is the composure and persistence shown by the Shanghai municipal government during the 1997 Asian financial crisis and the 2007-2008 subprime mortgage crisis, which gave Tangchen great support and encouragement.
　　Rewinding to 1997, the Asian financial storm shattered the rapid economic growth in Asia. Investors from Southeast Asia, Hong Kong, Macau, and Taiwan tightened their funds during this financial crisis, causing many developers in Shanghai to face capital shortages, including Tangchen Group.
　　Tang Zijia recalls that Mayor Zhao Qizheng, responsible for Pudong at the time, personally met with his father Tang Junnian and reached two points of consensus: First, Shanghai was less affected by the Asian financial crisis, so Tangchen's investment was safe. In Pudong, the largest investor was the Shanghai municipal government, which focused on infrastructure construction, followed by foreign-funded developers like Chia Tai and Tangchen developing commercial projects. The city's investment meant Pudong's development was a long-term commitment, and the government was confident in Pudong's success. Second, they hoped Tangchen would develop alongside Shanghai, adjusting strategies as needed but working together through challenges to build Pudong well.
　　"It was this frankness and calmness before the storm that gave us confidence to see further and go further under the leadership of the Party and government," said Tang Zijia.
　　Following Pudong's development and changes, adhering to the strategy of "focusing on high-end while facing the public," Tangchen has long become synonymous with high-end residential quality. Tangchen Group has also entered a harvest period, becoming increasingly open in its external communications, management style, and brand building.
　　Recently, Tang Zijia has been busy working with his team on new projects. He feels the planning stage of new projects is especially important and requires repeated study and refinement to present good products and increase the conversion rate of potential buyers. "I hope to present them to everyone at the right time in the future after meticulous polishing."

Young people need perseverance and patience.

　　As a post-80s with many glorious titles, we are curious about Tang Zijia beyond his work. He jokes, "Everyone is the same: getting up, eating, going to work... Please don't idolize or deify me! I'm just an ordinary person."
　　He believes that work and life are equally important. "If a person only has work but no life, their life is unhealthy. If they only have life but no work, their life is also unhealthy."
　　This is also his understanding of the meaning of life. In 2005, under great pressure, Tang Zijia took a brief trip to Qinghai. With his mother's strong support, he let go of everything to experience the life of a "ascetic monk," which brought a fundamental change in his attitude towards life. Reborn, Tang Zijia cherishes and loves life even more, and his biggest dream is to live happily. "I want to tell the post-80s generation that happiness is always around you, but only those who are attentive can grasp it."
　　As a child, Tang Zijia also watched Saint Seiya, Dragon Ball, and Slam Dunk. As an adult, he is passionate about sports like golf. He believes that appropriate physical exercise and hobbies are important to relieve stress and release emotions. "Aerobic exercise and golf balance our mental consumption, and my love for contemporary art gives me leisure to clear my mind."
　　He admits that his love for art was influenced by his mother, and the people he admires most along the way are his parents. "My father's decisiveness in decision-making is why Tangchen is what it is today. My mother's persistence in art is why works like Farewell My Concubine exist. Of course, her dedication to art is also reflected in the creation of each of our model homes."
　　As a young successful entrepreneur, he admires young people who have entrepreneurial passion, drive, and dreams. But he also reminds that passion alone is not enough; perseverance and patience are also needed. "These are the most valuable assets for young people, so since 2015, we have continuously supported young people to engage in the trend of innovation and entrepreneurship. The entrepreneurial environment used to be good, and many people had passion. Now the environment is worse; can you still maintain resilience? That is what matters."

The following are selected excerpts from the conversation between Leju Finance and Tang Zijia.

　　Leju Finance: On the 40th anniversary of reform and opening up, how do you view the development and changes in China's real estate over the past years?
　　Tang Zijia: Three changes: first, the huge changes in hardware facilities brought by real estate development and construction. When I was young, going from Puxi to Pudong required a ferry; later it became more convenient year by year, and eventually I lived in Pudong myself.
　　Second, the real estate industry has become more professional and standardized. When Tangchen Golf first launched, there wasn't even a standard contract. Now, from planning and construction to sales, the Shanghai government has done a lot to ensure the healthy development of every link in the real estate industry. Shanghai's industry management is ahead of the rest of the country.
　　Third, consumption capacity has grown rapidly with economic development. Previously, high-end commodity housing was sold to foreign clients, Hong Kong, Macau, and Taiwan clients. Now some Chinese people even go abroad to buy houses or develop overseas. The changes are significant.
　　 Leju Finance: Currently, during the rapid development phase of Yangtze River Delta integration, what is your view on this integration? Does Tangchen Group have any plans or expansions?
　 　Tang Zijia: We focus on two points: one is the integration of the Yangtze River Delta, and the other is uniting compatriots from Hong Kong, Macau, and Taiwan with the economic ties of mainland China.
　　The integration of the Yangtze River Delta relates to industrial transfer and talent flow. We maintain communication and exchanges with many industry peers. I am personally actively laying out some cultural industries, partnering with others to manage industrial funds. We are also willing to invest more resources deeply into industries such as new energy vehicles, e-sports entertainment, and film production. Real estate projects are mainly still in Shanghai.
　　Additionally, we fully support cultural exchanges and economic cooperation between compatriots from Hong Kong, Macau, Taiwan, and the mainland. This is reflected in our commitment to film and cultural cooperation projects across the Taiwan Strait and the three regions. Our company itself is a gathering place for talents from these areas, which is our consistent stance and what we most want to see.
　　 Leju Finance: The whole society is currently discussing the spirit of craftsmanship. What experience can Tangchen share in product creation?
　　 Tang Zijia: With our development experience in luxury housing projects, we have formed our own "three views." My mother, Ms. Xu Feng, proposed the product view that we should regard our products as "homes" rather than just houses. We love our products as if they were our own "homes," and we must consider the client carefully, attentively, and thoughtfully to present the kind of product customers deserve.
　　We emphasize that even for large houses, the layout must first satisfy the functions of a "home." In terms of decoration and design, we try to consider every family member of the client.
　　 Leju Finance: Compared to the past, has marketing changed a lot? How will marketing efforts be made in the second half?
　　 Tang Zijia: We have increasingly noticed the offline trend in marketing and promotion of high-end projects. We have always believed that Tangchen Yipin values "people first." Compared to projects driven by traffic, a house worth over 100 million yuan requires more point-to-point communication and service centered on individual clients. This will be the trend in luxury home marketing going forward and is a summary of past experience, which we call "perseverance and patience."
　　For projects not yet presented, we actively plan the products well, presenting good products to increase our conversion rate of client purchasing power. This is a core task, so we repeatedly study and refine during the planning stage of new projects.
　　 Leju Finance: How will the real estate market develop next?
　　 Tang Zijia: Regarding the real estate market, we suggest first making judgments about the development of cities. If you think Shanghai is vibrant and has potential, the real estate market should still maintain its vitality and potential. Secondly, don't be confined to one or two years; look at a longer cycle. Like Buffett's value investment theory, believe that scarce quality products in prime city locations have defensive value investment attributes.
　　 Leju Finance: Name a few people or companies in the real estate industry you admire most and briefly explain why.
　 　Tang Zijia: There is so much to say; many real estate people are admirable. Renheng, Shimao, COFCO, Vanke, Evergrande, and Sunac all have many leaders I learn from. Of course, the people I admire most are my parents. My father's decisiveness in decision-making is why Tangchen is what it is today. My mother's persistence in art is why works like Farewell My Concubine exist. Of course, her dedication to art is also reflected in the creation of each of our model homes.