Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Hong Kong unrest torches fortunes of city’s billionaires, wipes $15bn from top tycoons’ net worth

Hong Kong unrest torches fortunes of city’s billionaires, wipes $15bn from top tycoons’ net worth

Hong Kong’s stock market rout has lopped about $15bn off the net worth of its 10 richest tycoons, as conflicts between police and protesters that have weighed on asset prices show few signs of letting up.

Li Ka-shing, Hong Kong’s richest man, has racked up paper losses of more than $3bn since the end of July, according to Financial Times calculations based on Bloomberg data tracking the billionaires’ disclosed positions in listed companies.

Mr Li, as well as Lee Shau-kee, head of Henderson Land, and Lee Man-tat, chairman of the parent company of sauce maker Lee Kum Kee, have seen their fortunes drop almost one-tenth in August. Representatives of the three men did not respond to requests for comment.

The protests, sparked by a bill proposed by the territory’s chief executive Carrie Lam that would allow the extradition of suspects to mainland China for the first time, had until this month left stocks relatively unscathed.

But as protests have intensified in the face of government inaction and police crackdowns, the benchmark Hang Seng index has dropped about 8 per cent over the past fortnight.

The sell-off has put the index in the red for 2019, making it the only developed market benchmark in negative territory among the 25 tracked by Bloomberg. Hong Kong’s total market capitalisation has dropped about HK$2.67tn ($340bn) so far this month.

As Beijing’s rhetoric has ramped up, the territory’s property tycoons have made shows of loyalty through their companies, which have issued statements supporting Ms Lam and local police.

But such moves have not done much to stem losses. Falls in property stocks of 8.5 per cent this month have outstripped the broader market’s decline.

On Friday, Mr Li took out a front-page advertisement in multiple Hong Kong newspapers calling for an end to violence and for people to love China and Hong Kong.

Willy Lam, a China expert at the Chinese University of Hong Kong, said the unrest had probably prompted local tycoons to privately ask Beijing for a softer approach towards Hong Kong in the short term.

“They also realise that perhaps Hong Kong’s situation would take months if not more than a year to resolve,” he added, which could encourage them to take their money elsewhere.

Mr Li, 91, is among several tycoons who have shifted away from Hong Kong and Chinese property development in recent years, homing in on businesses in developed western countries that generate stable cash flows.

Last summer, his CK Hutchison conglomerate bought the remaining 50 per cent of Wind Tre for €2.45bn, for example, becoming the sole owner of the Italian mobile telecommunications provider. In March 2018, Mr Li passed the management reins of his empire to his eldest son, Victor.

Should more local billionaires follow suit it could have adverse consequences for Hong Kong’s economy.

That would spell further trouble for Ms Lam, who has staked the future of her administration on fostering an economic rebound for Hong Kong rather than submitting to demands for a full withdrawal of the extradition bill, an independent inquiry into police violence and calls for her to step down.

There is little on the horizon to cheer investors, however. While Ms Lam’s financial secretary announced an economic support package of HK$19.1bn on Thursday evening, this was paired with the government lowering its 2019 growth forecast to between zero and 1 per cent.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×