2014-07-10 13:11
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At the press conference of Cheung Kong (Holdings) Ltd. and Huchison Whampoa Whampos Ltd., Billionaire Li Ka-shing pointed out the rumor that he is going to exit from supermarket operations and divest in Hong Kong.
Li Ka-shing said that he had sold tens of billions, or even hundreds of billions, of assets in a short time and he had never been criticized before. He noted that it would be “an unhealthy society” if the businessmen are criticized for wanting to sell off assets in a free market.
Here are three reasons that Li Ka-shing pointed out:
A high proportion of overseas business: Li Ka-shing unfazed by slump in Hong Kong property market because of a high proportion of overseas business in the conglomerate run by him.
Tens of billions of dollars of investment in overseas business is not a huge amount to Li ka-shing. During last year, Hutchison Whampoa’s operating revenue rose 4% to HK$412.93 billion from a restated HK$397.91 billion.
The land is too expensive in Mainland China: Li Ka-shing think positive for mainland property market in the long run, because the Chinese people are willing to buy their own house as long as they have enough money. He said the growth of China’s gross domestic product (GDP) is 7.5%, much higher than other countries in the world. However, Li Ka_shing keeps reducing land purchases because of the high price of land, and he said he would consider buying if the price were lower in the future.
The labor costs of Hong Kong construction industry are too high: for the development of real estate in Hong Kong, Li Ka-shing also pointed out that the main reason of construction cost too expensive is the lack of labor in the construction industry. There would not be enough workers in Hong Kong because more infrastructure projects of SAR Government are going to commence in the future.
The high price of construction cost of many real property projects in Hong Kong leads to cost burden in terms of money and time. He anticipated the construction cost will continue to increase, or even surpass inflation rate.
-->Li Ka-shing think positive for mainland property market in the long run, because the Chinese people are willing to buy their own house as long as they have enough money.
At the press conference of Cheung Kong (Holdings) Ltd. and Huchison Whampoa Whampos Ltd., Billionaire Li Ka-shing pointed out the rumor that he is going to exit from supermarket operations and divest in Hong Kong.
Li Ka-shing said that he had sold tens of billions, or even hundreds of billions, of assets in a short time and he had never been criticized before. He noted that it would be “an unhealthy society” if the businessmen are criticized for wanting to sell off assets in a free market.
Here are three reasons that Li Ka-shing pointed out:
A high proportion of overseas business: Li Ka-shing unfazed by slump in Hong Kong property market because of a high proportion of overseas business in the conglomerate run by him.
Tens of billions of dollars of investment in overseas business is not a huge amount to Li ka-shing. During last year, Hutchison Whampoa’s operating revenue rose 4% to HK$412.93 billion from a restated HK$397.91 billion.
The land is too expensive in Mainland China: Li Ka-shing think positive for mainland property market in the long run, because the Chinese people are willing to buy their own house as long as they have enough money. He said the growth of China’s gross domestic product (GDP) is 7.5%, much higher than other countries in the world. However, Li Ka_shing keeps reducing land purchases because of the high price of land, and he said he would consider buying if the price were lower in the future.
The labor costs of Hong Kong construction industry are too high: for the development of real estate in Hong Kong, Li Ka-shing also pointed out that the main reason of construction cost too expensive is the lack of labor in the construction industry. There would not be enough workers in Hong Kong because more infrastructure projects of SAR Government are going to commence in the future.
The high price of construction cost of many real property projects in Hong Kong leads to cost burden in terms of money and time. He anticipated the construction cost will continue to increase, or even surpass inflation rate.
