Is developer’s decision to walk away from HK$11.1 billion land deal first sign of waning business confidence in Hong Kong over extradition bill saga?

Company cited ‘social contradiction and economic instability’ for its move, which cost HK$25 million in lost deposit money

Independent director Abraham Razack, who spearheaded decision, said recent social disharmony in Hong Kong and US-China trade war were among issues that worried him

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Riot police disperse protesters in Admiralty. Photo: K.Y. Cheng

Published: 8:46pm, 12 Jun 2019Updated: 11:54pm, 12 Jun 2019

Is the decision by a mainland China-funded developer to walk away from its HK$11.1 billion (US$1.4 billion) purchase of a Hong Kong site a sign of dented business confidence in the wake of the controversy over the extradition bill?

Abraham Razack, a pro-government lawmaker who spearheaded Goldin Financial Holdings’ move on Tuesday to forfeit its right to buy the site at the old Kai Tak airport, said recent disharmony in Hong Kong and the US-China trade war were among issues that worried him.

The company cited “social contradiction and economic instability” for its decision, which cost HK$25 million in lost deposit money.

The 73-year-old Razack, an independent non-executive director of Goldin, sought to play down the link between the saga and the company’s shock move, saying it was not a major reason.

Lawmaker Abraham Razack is an independent non-executive director of Goldin Financial. Photo: Dickson Lee

“The company decided to bid for the site last month, a few months after the government put forward the [law] proposal,” he said.