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Li Ka-Shing

Often referred to as “Superman” in Hong Kong because of his business prowess, Li Ka-shing is the richest businessman in Asia, and chairs conglomerate Hutchison Whampoa and Cheung Kong Holdings, a property group. Li turned Cheung Kong Industries into a top property group, and Cheung Kong expanded to acquire Hutchison Whampoa in 1979 and Hongkong Electric in 1985. Li is a noted philanthropist and heads a charitable foundation that is a shareholder in Facebook.

NewsHong Kong

Shanghai free-trade zone will hit Hong Kong quicker than expected, says Li Ka-shing

Hong Kong needs to develop more quickly or risk being left behind, warns tycoon, as he urges people to unite to improve the city

PUBLISHED : Tuesday, 17 September, 2013, 10:00pm
UPDATED : Wednesday, 18 September, 2013, 4:49pm
 

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  • Yes: 83%
  • No: 17%
18 Sep 2013
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Total number of votes recorded: 482

Shanghai's new free-trade zone will have a bigger and quicker impact on Hong Kong than most people imagine, Asia's richest man, Li Ka-shing, said yesterday.

"[The free-trade zone] will have a big impact on Hong Kong," said Li, who chairs Cheung Kong (Holdings) and Hutchison Whampoa. "It has different aspects, including financial services. When the yuan becomes fully convertible, it will benefit the development of Shanghai."

Hong Kong would lag behind if it did not accelerate the pace of its development, he said.

If I sell this building [Cheung Kong Center], you should start to worry
LI KA-SHING

The landmark project signals Beijing's determination to raise the competitiveness of the mainland economy. It plans to elevate Shanghai's role in economic reform by loosening controls on capital flows and expanding foreign investment in its free-trade zone, to officially open next week.

Asked if Shanghai would surpass Hong Kong in the next five to 10 years, Li replied: "I do not want to predict. But it will be faster than most people expect.

"It is just like you are running a 1,000-kilometre race. When you run one-third of the race, you see [your competitor] still behind you. But you are already surpassed [by your competitor] in the first half of the race. It is all about the speed."

The speed at which the Shanghai project has taken shape has caught market watchers by surprise. It has overshadowed similar plans for Qianhai in Shenzhen, Hengqin island in the Zhuhai special economic zone, and Nansha, in Guangzhou.

Li urged Hongkongers to unite to improve the city, and said his flagship companies would not pull their assets out of Hong Kong. "I will absolutely not move our domiciles from Hong Kong," he said. "After many years Cheung Kong and Hutchison will still be here."

His remarks followed widespread reports that Li was pulling assets out of Hong Kong and the mainland, with plans to offload HK$40 billion of assets, including the possible sale of the ParknShop supermarket chain.

Li said selling ParknShop was a commercial decision.

"If [this move] is interpreted as pulling out from Hong Kong, the amount may be too small," Li said, joking that "to me, if I sell this building [Cheung Kong Center], you should start to worry."

Li said Hong Kong's property market had become unpredictable because it was subject to government policies, but the impact of cooling measures on developers and other sectors would be reflected next year.

Property transactions in Hong Kong dropped to their lowest level in a decade in the first half of the year. There were 39,077 property transactions lodged with the government registry as a series of housing policy measures and the continued tightening of mortgage requirements weighed on the real estate industry. It was the lowest number of transactions since the 35,200 deals recorded in the first half of 2003, when the city was gripped by fears about Sars.

Separately, a member of the Friends of Hong Kong Association quoted Wang Guangya, director of the Hong Kong and Macau Affairs Office, as saying there were several economic hubs that needed support from the central government.

"Wang said the country had more than a son, referring to the several hubs, but it would reserve the best policies for Hong Kong," said Chan Wing-kee.

Commenting on the Occupy Central movement for greater democracy, Li said: "Personally I do not agree with occupying Central. It will adversely affect Hong Kong's image as a financial city and have a negative impact on the city's economy."

There were many ways to express an opinion, he said, and it was not necessary to choose such a method to fight for democracy.

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Camel
Up to now, no FTZ was confirmed in any way. If the Taiwanese speculated on false base, then it's their coffee.
Shanghai is the first and confirmed. The development of China within 30 years is not just "hot air". Once something is confirmed, then its confirmed.
daily
He is more concerned about how hard his own business in HK will be hit even though he's already invested overseas years ago..............if he wasn't trying to maintain a clean and reputable name before dying........he would have moved the headquarters of both CK and Hutch out of Hk long time ago...............
Byebye
@johnyuan. Not only Mr LKS, other developers or affluent business people too. We need to look at the future, our next generation and what Hong Kong truly does mean to us. The 1997 outflow of population due to uncertainty of the hanover is long gone, so is the colonial rule. We need a new Hong Kong, with total commitment of Hong Kong people across the board; With our unity based solely on the interest and well being of Hong Kong, we can steer this sinking ship to higher ground. Time to think.......to reflect and to work together for Hong Kong.
johnyuan
I might be wrong, but LKS is the leader among the privileged to make a change in Hong Kong. Sure anyone else wants to lead is also welcomed.
johnyuan
‘Hong Kong would lag behind if it did not accelerate the pace of its development, he said.’ Coming from LKS, we must not dismiss his cautious advice. But we must ask him how? Or it is assume he is speaking for his companies which are not necessary good for Hong Kong as a whole. Hong Kong needs diversification in ownership to invent and to be competitive. I believe LKS can provide leadership in reducing rent and housing cost by lowering their profit margin. Let go some of his business so others can have a chance to build their business in a new environment. I believe he has already embarked in this direction.
Byebye
The tortoise has become the new hare.....no turning back. Time for the old hare to not only wake up, but shape up. Now new race has started - hare vs hare!
taoscmplogin
Hong Kongers can only unite behind a set of economic and social policies which sees sustainability of livelihoods in the long run. Government and concentrated business interests have long controlled the fate of this great city. It's time the tycoons and obscenely rich give more meaningfully back what they have reaped over such a long time. Last Sunday's Post magazine covered a story about how many exotic and expensive sports cars could be seen around the city. For every one of these cars, I would hope the owners give two times their value to more worthy causes relating to livelihood programmes.
ejmciii
Competition does not mean emulation. "Hong Kong" had a meaning to the world as a multicultural city. It has lost much of that cachet. Shanghai is and will be a Chinese city replete with the good and bad of being the financial center of China. We will never out-China Shanghai. Hong Kong needs to distinguish itself building on its rule of law, ability to change and adapt where the Mainland needs approval of the princes, welcoming investors not just from China but throughout ASEAN. Our international view is very different that we see in China and that is something we should exploit. The sticking point is a government that is fixated on destroying what makes us different in order to satisfy the princes in Beijing that we will be good little slaves. I am not in favor of occupying Central but we need a government that reports to the people not to the masters or else we will fade into the background.
XYZ
Singapore is now much more multi-cultural than Hong Kong. Hong Kong was once a regional base for Asia. Now it is a base for Greater China. I'm not saying whether that is good or bad. it just is.
Camel
If the HK government is acting on behalf of those rascals and troublemaker the city for sure is going down. HK needs the Mainland and that is fact and there is no way around. The few ones who don't like it should leave.

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