Stake sale adds to concerns over Li Ka-shing shift
Sell-down in mainland company taken by some as further signs of lack of confidence locally
Li Ka-shing has sold down his stake in a small company in his latest divestment from the mainland, adding to concerns about investor confidence.
The sale of a combined 5 per cent stake in Changyuan Group, a mainland manufacturer of power grid facilities - for 367.9 million yuan (HK$468.1 million) on October 31 and November 1 - cut Li's stake to 20.8 per cent. This is down from a peak of more than 35 per cent.
Concord Investment, the vehicle Li used to invest in the mainland firm in 1995, had not ruled out further sales over the next year, Changyuan said in a statement on Tuesday.
The latest sale has added fuel to a heated debate about whether Asia's richest man is losing confidence in the mainland and Hong Kong property markets and the broader economy.
Li's companies had earlier announced plans to sell off Hongkong Electric and explore the sale of shares in retail unit AS Watson.
"The sell-off by Li Ka-shing will have an impact on the mainland's and Hong Kong's economy," Guo Shiliang, a mainland columnist and critic, blogged yesterday.