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Sun Hung Kai Properties

New World's Cheng climbs Forbes rich list

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Denise Tsang

Property tycoon Cheng Yu-tung made the most gains on the latest Forbes rich list even though real estate developers have been hit hardest in the economic slowdown.

The executive chairman of New World Development is the No 4 richest person in Hong Kong following the listing of his firm's jewellery retail arm, Chow Tai Fook Jewellery, last month.

The jeweller's share offering - the city's largest last year - raised HK$15.8 billion, and boosted Cheng's net worth by more than 60 per cent to US$15 billion.

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However, the city's 40 richest individuals - the top five being mainly property developers - saw their wealth decline 7.4 per cent to US$151 billion.

The sharp fall of the mainland's property market was partly to blame, with home sales plunging about 70 per cent owing to Beijing's tough measures to curb the property boom and bank lending.

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That in turn sparked a price war among major developers, who were desperate to raise cash to sustain their business.

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