bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Sandy Li

Peggy Sito

Li Ka-shing's apparent move to reduce his investments in Hong Kong could damage the city's economic competitiveness, says a study by a central government think tank.
Hong Kong still ranked as the most competitive Chinese city last year, according to the annual "blue paper" by the Chinese Academy of Social Sciences (CASS).
But it said soaring property prices and the lack of innovation could hamper the city's growth and it could be overtaken by other Chinese cities.
"[There are also] rumours about Li Ka-shing and his group's plan to withdraw from Hong Kong. If [the group] frequently sells assets in the latter half of this year, it could affect Hong Kong's overall business competitiveness," the report said.
Coincidentally, Cheung Kong and Hutchison Whampoa - the two flagship firms controlled by Li - reduced their shares in Hong Kong-listed Hui Xian Real Estate Investment Trust yesterday.
Rumours about Li's intentions have been swirling since the planned sale was announced last year of his ParknShop supermarkets, later abandoned.
In November, he rejected suggestions he was pulling out of the city as a "big joke". But in January, Hongkong Electric Investments - part of his energy flagship, Power Assets - raked in HK$52 billion in an initial public offering. And in March, Li sold a 60 per cent stake in the container port's Terminal 8 West for HK$2.47 billion.
In February he gave a downbeat assessment of Hong Kong, pointing to Occupy Central, the harassment of mainland tourists and declining competitiveness vis-à-vis neighbouring markets.
In response to the CASS report, Cheung Kong said Li, its chairman, had emphasised on several occasions that the group had no plans to withdraw from the city. "Hong Kong and the mainland will continue to be the group's important investment area," a company statement said.
Liao Qun, chief economist of Citic Bank International, said: "It is hard to say whether rumours of [Li] cashing in will affect the city's competitiveness.
"Li has sold assets in Hong Kong and in some mainland cities. But I see it as an asset allocation. I do not think he will sell his assets in Hong Kong and mainland on a large scale."
Dr Chan Kin-man, co-organiser of the Occupy Central movement, said the protest could create "short-term disturbances", but that Hong Kong would become more competitive if it had real democracy.
The CASS report said Hong Kong could leverage the support of Beijing to develop as an offshore yuan and international asset management centre.
It added that a transparent government coupled with an efficient transport system could also help to sharpen its edge over other mainland cities.
But Hong Kong faced a challenge because of its high level of dependence on the financial and real estate sectors and its rapidly ageing population.
"The development of small-to-medium-sized enterprises has been affected by high rentals," the report added.
Political commentator Johnny Lau Yui-siu said: "It is academic research. It does not mean that it represents the central government's stance."
Additional reporting by Benjamin Robertson and Tony Cheung
 


Can Hong Kong’s Hutchison ride out storm over Panama ports deal after Beijing attack?

China’s fiery criticism of Panama port deal puts pressure on Li Ka-shing family

Hutchison ports sale, two sessions wrap up, Ed Miliband to visit Beijing and more

‘A betrayal’: top Beijing office runs scathing attack on Panama deal by Hong Kong’s Hutchison

Li Ka-shing

Li Ka-shing’s rumoured plan to reduce investments ‘could damage Hong Kong’ 

Li Ka-shing, Asia's richest man. Photo: SCMP

News

Hong Kong

Report by central government think tank warns tycoon's reputed plan to reduce his investments in city could hit its economic competitiveness


Li Ka-shing's apparent move to reduce his investments in Hong Kong could damage the city's economic competitiveness, says a study by a central government think tank.
