Related News
Home » Business » Real Estate
Mogul’s sales don’t dent confidence
Print Edition
When Asia’s richest man Li Ka-shing sold some of his Chinese properties recently, there were fears other investors might pull their money out of China.
However, several prominent overseas Chinese billionaires say they’re not taking Li’s move as a warning and would be investing more in China.
Li, a Hong Kong business mogul, sold a shopping plaza in Guangzhou and plans to sell an office building in Shanghai. The eighth richest person in the world on the Forbes list could also possibly offload his ParknShop, a Hong Kong-based grocery chain.
Wang Shi, a real-estate tycoon on the Chinese mainland, said Li’s actions were a signal to be wary.
However, Dhanin Chearavanont, a Thai Chinese and the 58th richest person in the world, said Li’s sales were nothing unusual. “I don’t think he’s exiting [China],” said the Charoen Pokphand Group chairman yesterday. “No matter which country Chairman Li’s investment is in, he sells if he becomes satisfied.”
Dhanin added: “I am enhancing my investments. I visit China frequently. I first came to China 33 years ago, much earlier than he did. I’m very aware.”
Dhanin’s CP Group has invested nearly US$6 billion in China and built strong connections in business. His investments involve agriculture, retailing and real estate, including a 10-story shopping mall in the center of Shanghai’s Lujiazui area.
Last December, Dhanin’s company paid HSBC about US$9.4 billion to buy a 15.6 percent stake in Ping’an, China’s biggest private insurer.
“My purchase of Ping’an is a solid fact demonstrating my full confidence in the Chinese economy’s future,” Dhanin said. “The fortune of China remains good.”
The economic slowdown, overcapacity and exposed financial risks such as mounting government debt and runaway shadow banking prompted China bears to warn of a hard-landing and the popping of real estate bubbles.
But in the past two months, manufacturing and investment have recovered, reassuring the market that the country’s official growth target of 7.5 percent will be achieved.
Mochtar Riady, a Chinese Indonesian financial magnate in Southeast Asia, said the Chinese economy was still moving upward and there were opportunities to invest. Riady said Li’s actions were not a signal for others to pull out money.
Riady’s Lippo Group has developed real estate projects across China, including a plaza on Shanghai’s Huaihai Road. Lippo owns and operates hotels, office buildings and shopping malls in cities that also include Beijing, Chengdu and Haikou.
“I am fully confident in China’s economic growth,” Riady added, saying the country’s real estate prices would continue to rise.
Loss of confidence
Thomas Chua Kee Seng, president of Singapore Chinese Chamber of Commerce and Industry, does not regard Li’s moves as a signal of a loss of confidence.
“With his powerful capital, Li can do things that others can’t. Many things are cheap in Europe. Why can’t he transfer some money to Europe and later invest the money he earns in China?” Chua said.
“Our confidence of investing in China has never dwindled,” Chua added. “Certainly, every enterprise needs to consider the risks they can take.”
Li, chairman of Cheung Kong and Hutchison Whampoa, told the Hong Kong press last week that his flagship companies would not pull their assets out.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
