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Ben Kwok

Despite subprime crisis, Li says look to bricks and mortar

Buy Hong Kong property.

This was the first thought that came to mind for reporters attending the interim results meeting hosted yesterday by Cheung Kong (Holdings) and Hutchison Whampoa chairman Li Ka-shing.

Right, there is no subprime mortgage problem here. No worries.

Asked what Hong Kong's richest tycoon thought about the subprime crisis, Mr Li acknowledged that it could affect the world economy but it was not necessarily bad for Hong Kong.

'I think the chance of the United States cutting interest rates is high,' said Mr Li.

'Given that the Hong Kong dollar is linked to the US dollar, if there were more rounds of rate cuts, Hong Kong would probably follow.'

A lower interest rate would stimulate the local property market, so would the wealth effect from investors who make big money on the stock market.

'Many people making money in the equity market would put that into property,' said Mr Li.

His son Victor Li Tzar-kuoi quickly echoed: 'Perhaps investors might like to buy flats now more than stocks.'

Throughout the conference, we heard  Victor Li,  the managing director, repeating the very strong feedback Cheung Kong had received for its upcoming residential project and the long tenant waiting list for its Grade-A office space.

No property developer would say anything bearish about the market (and that's why every year the Sun Hung Kai Properties and Henderson Land chairmen predict a 10 per cent rise in house prices) but it is not often that the Li father-and-son combo come up with such a bullish tone.

Buy property must be the right call. Whether to buy Cheung Kong as a proxy to the property market is another matter.

Backhanded compliment

Li Ka-shing invariably appears  out of sorts when asked questions about son Richard Li Tzar-kai (below).

Queries on politically sensitive issues can make him even worse.

So when a reporter asked if he supported Richard's view on universal suffrage, he quickly answered: 'This is a private question. Ask Richard, you silly.'

Later the tycoon apologised three times for his answer.

'It is only a joke, lady, please don't take it to heart,' Mr Li begged.

Asked about his comment on the current 17-day strike by ironworkers campaigning over pay and working hours, he replied: 'If I say it, you'll make a big fuss out of it. Victor, you answer.'

Sharing the wealth

Warren Buffett isn't called 'Sage of Omaha' for nothing. Six weeks ago, he sold 16.9 million PetroChina shares at HK$12.44 each, just below a record-high of HK$12.60.

PetroChina chairman Jiang Jiemin  yesterday was quizzed on whether he knew of any further action from Mr Buffett. He replied: 'We are a good company; I don't think he would sell. But if he does, we have 1.3 billion people in China who want to buy our upcoming A-share offering.'

Mr Buffett still owns 2.13 billion PetroChina shares,  less than two shares per  person in the mainland. He can easily cash out if he wants.

Work it out for yourself

Still with Mr Jiang, who offered us the best quote of the day. Asked how his company's oil output would increase in the second half, he said: 'Don't ask me why. If you know why, you can [probably] take over as a chief executive.'

We would like to offer this line to Hutchison Whampoa group managing director Canning Fok Kin-ning  who has always told the media that his 3G mobile-phone business could turn to an operating profit 'next year'.

Dark days for Disney

Poor Hong Kong Disneyland! Its well-below target attendance must have been hitting its marketing people real hard.

So when they launched a  Halloween campaign, they called it 'Dark World'.

Here is their pitch. 'Hong Kong Disneyland dares all guests to take a walk on the dark side.

'This year, the haunted Halloween at Hong Kong Disneyland will be edgier, eerier and more exciting than ever before.'

We can only wish Disney a brighter future.

Living it up in Macau

How to sell a Macau concept?

Take a look at Morgan Stanley which next Monday will bring a group of 52 investors to visit major Macau corporations.

They'll stay and dine in Wynn Macau, attend a conference at next door StarWorld Hotel and join the big opening party at Venetian Macau next Tuesday.



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Lai See

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