Hutchison Whampoa denies it plans to quit Hong Kong amid speculation over possible ParknShop sale

Billionaire Li Ka-shing's conglomerate Hutchison Whampoa said yesterday it had no intention of withdrawing from Hong Kong, despite launching a review that could lead to the sale of its ParknShop supermarket chain.

It said a subsidiary, A.S. Watson & Co, was conducting a strategic study of the business "to optimise value for shareholders".

But it stressed that media rumours that it may be pulling out of the city were "groundless".

Leaving his home yesterday morning, Li referred to the review, saying: "It is a normal business activity."

But in response to questions from reporters, he denied it was related to the political situation or public opinion of Chief Executive Leung Chun-ying. He added: "Please do not speculate."

According to a report in The Wall Street Journal on Friday, the ports-to-telecoms conglomerate has hired investment banks Goldman Sachs and Bank of America/Merrill Lynch to sell ParknShop for up to US$2 billion.

The group decided last month to sell the chain to raise cash to help it through one of the most challenging business environments for years, the report said.