Advertisement

Hong Kong’s investment interests in the UK undaunted by Brexit, says official

Sajid Javid, Secretary of State for Communities and Local Government cites the UK’s open economy and stability as reasons, but analysts suggest it is the price of the pound

Reading Time:2 minutes
Why you can trust SCMP
Investments by tycoon Henry Cheng Kar-shun of New World Development and Far East Consortium International are part of the US$8 billion of Hong Kong investments that have gone into the UK this year. Photo: AFP

Hong Kong companies and individuals are still investing in the UK, particularly in British property despite the uncertainty in the country’s prospects in the short and long term.

Advertisement

Sajid Javid, the UK’s Secretary of State for Communities and Local Government said this was because of the UK’s welcoming attitude to foreign investment, but analysts pointed out that the low level of the pound was a bigger draw.

“Hong Kong companies have invested US$8 billion dollars in the UK this year, and one of the reasons is that people recognise it is an open economy that welcomes foreign investment,” said Javid, who was in Hong Kong last week after visiting the China international industrial fair in Shanghai, as part of a British delegation.

Much of the investment from Hong Kong companies is into the UK’s property sector.

In February, Henry Cheng Kar-shun, chairman of Hong Kong’s New World Development, committed to invest £1 billion (US$1.3 billion) to develop a mixed property project in London, and in April, mid-sized Hong Kong developer Far East Consortium International announced plans to build 10,000 housing units in Manchester worth £1 billion over the next decade.

Advertisement
“We are seeing more investment from Hong Kong into commercial and residential property in the UK, but the main reason is the value of the pound is so low,” said Dennis Ma, head of research at property consultancy JLL.
loading
Advertisement