SM Prime Holdings Inc., the Philippines’ largest mall operator, is reinforcing its long-term commitment to the Chinese market by narrowing its focus exclusively to Fujian province, as part of its strategy to deepen its presence in China’s retail sector.
SM Supermalls president Steven T. Tan confirmed that the company will open its ninth shopping mall in China next month in Xiamen, a key port city in Fujian. The upcoming mall, covering 60,000 square meters, will be located on the city’s outskirts and marks the conglomerate’s second mall in Xiamen. A tenth mall is already being planned for Fuzhou, also in Fujian, with a target opening in 2027.
“We’re focusing more on Fujian because **Tatang, our founder, is from there… and we know the market better,” Tan said, referring to SM founder Henry Sy, a native of Fujian.
Despite a smaller landbank in China compared to its home market, SM Prime remains confident in the opportunities within the province, aided by strong performance at existing sites. “Our original Xiamen mall now has four buildings and is doing extremely well,” Tan added.
He also highlighted the unique structure of Chinese land ownership as a factor shaping expansion: “You don’t really own the land [in China]. It’s leased for ‘x’ number of years. Government owns the land, not the private sector.”
The move signals SM Prime’s measured yet deliberate growth in China, even as it continues aggressive expansion in the Philippines. As of mid-2025, SM Prime operates 88 malls in the Philippines and 8 in China, with gross floor areas of 9.5 million sqm and 1.7 million sqm, respectively.
The China strategy coincides with a period of strong financial performance. In the first half of 2025, SM Prime posted a record P24.5 billion net income, up 11 percent year-on-year, driven by higher rental income, real estate sales, and auxiliary revenues. Consolidated revenues rose 5% to P68 billion, with malls contributing 60% of total income.
President Jeffrey C. Lim cited easing inflation, Metro Manila wage hikes, and regional mall expansion—including the China push—as key growth drivers for the rest of the year.
Domestically, SM Prime is also expanding with SM City Laoag launched in May and SM City La Union slated for the second half of 2025, which will add 100,000 sqm in gross floor area.
With China’s retail sector continuing to evolve, SM Prime’s focused strategy in Fujian underscores both its cultural roots and commercial foresight, anchoring its China expansion on proximity, performance, and local familiarity.
