In an impetuous social environment, Chinese service enterprises need to “watch faith”

The China Banking and Insurance Regulatory Commission (CBIRC) has called on banks to review the development of the central bank's red list, particularly focusing on real estate loans issued in September. This move has sparked widespread public concern, especially as it relates directly to housing prices—a topic that has long been at the heart of public anxiety. National leaders have repeatedly emphasized their concern over rising property prices and have urged strict control measures, alongside the urgent need for affordable housing construction. Despite these directives, many top executives in the real estate sector seem to wield more influence than the government itself, highlighting a growing disconnect between policy and practice. In reality, the problem stems from state-owned enterprises (SOEs) maintaining strong ties to the real estate market. In March this year, the State-owned Assets Supervision and Administration Commission (SASAC) issued a directive requiring 78 central SOEs to exit the real estate industry, which is not their core business. However, eight months later, only a handful—such as COSCO, China Aerospace, Sinopec, and CNPC—have taken action, transferring equity in fewer than 20 real estate subsidiaries. The remaining 71 SOEs with over 200 real estate subsidiaries show no signs of moving, making the "exit order" little more than an empty promise. Why is it so difficult for these companies to step back? The answer lies in short-term profit motives. Some SOEs are blinded by the lure of quick gains, which may generate substantial profits in the short run but come with serious long-term consequences. First, this behavior continues to drive up housing prices, potentially causing structural imbalances in the Chinese economy and increasing the burden on ordinary citizens. Second, it risks creating another crisis: if SOEs prioritize short-term profits over long-term stability, they may neglect their core missions and lose competitive edge. The reluctance of SOEs to leave the real estate market reflects a deeper lack of confidence among businesses and individuals during China’s economic transition. This is not just a financial issue—it is a societal crisis, signaling a dangerous shift in priorities. However, not all companies are driven solely by immediate gains. Some demonstrate foresight, remain committed to their core values, and focus on sustainable growth. This is exactly what Chinese companies need most right now. Zhou Shaoxiong, Chairman of Septwolves Industrial Co., Ltd., shared his perspective openly. He said that despite numerous temptations, the company has remained focused on its core strengths. “We always concentrate on building the core competitiveness of our main industry,” he said. Zhou has consistently worked to elevate the brand image of Septwolves, aiming to create world-class fashion products. He believes that Septwolves should represent the Chinese spirit on the global stage. “When people think of Septwolves, they should associate it with China and the Chinese spirit,” he said. It is Zhou’s unwavering belief and commitment that have made Septwolves one of the most representative companies in China’s apparel industry. With its deep brand culture, it has become hard for others to compete. This is not exaggerated. Since its inception, Septwolves has clearly stated its mission: “Challenge life and never look back; believe in yourself and your partners.” Whether it’s the “City Coyote” campaign endorsed by Qi Qin or the recent “Sacrifices to Real Men” TVC, Septwolves continues to lead the modern cultural spirit of the times. Maintaining faith is more challenging than establishing it. We must keep moving forward toward our goals with determination. In today’s era, this is precisely the business ethos that Chinese companies need. Only when the majority of Chinese enterprises, including central SOEs, embrace this mindset can China’s economic transformation proceed smoothly, minimizing the social cost along the way.