Source:
https://scmp.com/business/article/3075828/hong-kong-tycoon-li-ka-shings-ck-infrastructure-says-covid-19-induced Business
Hong Kong tycoon Li Ka-shing’s CK Infrastructure says Covid-19 induced ultra-low interest rates will pressure returns
- Tough stances by regulators will also weigh on revenues, Victor Li Tzar-kuoi says
- Company’s net profit for last year amounted to HK$10.5 billion, up 0.7 per cent from 2018
Hong Kong tycoon Li Ka-shing, left, with his son Victor Li Tzar-kuoi, the chairman of CK Infrastructure. Photo: Dickson Lee
CK Infrastructure, the infrastructure and energy flagship of Hong Kong tycoon Li Ka-shing’s business empire, said on Wednesday that “ultra-low” global interest rates induced by efforts to fight the coronavirus outbreak will squeeze the return rates of its projects.
“Of particular challenge to CKI will be the series of regulatory resets, which will be coming up in 2020 and over the next few years,” Victor Li Tzar-kuoi, Li’s eldest son and the company’s chairman, said in a filing to Hong Kong’s bourse. “Lower allowed returns resulting from ultra-low interest rates globally and tough stances by regulators will inevitably result in lower revenues.”