At 4 PM on March 16, the 90-year-old Li Ka-shing announced at a press conference that he would step down as Chairman of the Board of CK Hutchison Holdings, with his eldest son Li Zeju taking over. Media in Hong Kong reported that a generation of wealth in Hong Kong has retired. Li Ka-shing stated at the press conference that he started working at the age of 12, and now it is time for him to retire.
However, Li Ka-shing will continue to serve as Chairman of the Li Ka-shing Foundation and as a senior advisor to CK Group. Reports indicate that his advisory fee is HKD 5,000 per year (equivalent to RMB 4,031.25).
Li Ka-shing was born in Chaozhou, Guangdong in 1928. In 1939, to escape the war, he moved to Hong Kong with his family. In 1950, he founded his first company, Cheung Kong Plastic Factory, and established Cheung Kong Holdings in 1972. By 1986, Cheung Kong Holdings had become one of the top ten conglomerates in Hong Kong. In 2000, Li Ka-shing ranked 10th on Forbes' list of the world's billionaires with a personal fortune of USD 12.6 billion.
What did Li Ka-shing say upon his retirement?
As he approaches his advanced years, Li Ka-shing attended the 2017 annual performance press conference of CK Hutchison and CK Asset Holdings (1113.HK) with great vigor, standing to express his sentiments at the beginning of the press conference.
"I am very grateful for the opportunity to establish Cheung Kong Group, create value for shareholders, and serve society; this is my greatest honor. I thank everyone for their love and support over the years; every bit of it is in my heart. In the future, I will serve as a senior advisor to the group and will don a new outfit, fully committing to the work of the (Li Ka-shing) Foundation, especially in healthcare and education," he stated.
In recent years, Hong Kong has faced competition from various fronts, such as the real estate market traditionally dominated by local developers, which is now challenged by mainland developers bidding high prices for land, shaking its status; in addition, the continuously high property prices and insufficient breadth of economic development have led to a diminishing hope among young people for upward mobility.
In response, Li Ka-shing stated that in 1950, shortly after the war, there were many opportunities in Hong Kong, but today’s youth also have many opportunities. I believe young people need to enhance their competitive abilities; I have been saying this for many years. Knowledge changes destiny; seek knowledge, enhance oneself, and understand how to improve with new technologies; there are indeed many opportunities for young people.
The group began expanding its business overseas in the late 1980s and accelerated investments outside Hong Kong in the 1990s, including acquiring container terminals and telecommunications businesses abroad, as well as highways and ports in China. The group now operates in over 50 countries worldwide.
Response to Capital Flight: "Only Those Lacking Basic Economic Knowledge Talk About Capital Flight"
Li Ka-shing has been adept in the business arena, with a keen investment eye. He has consistently ranked as the richest Chinese for many years, but in recent years has been surpassed by wealthy mainland entrepreneurs and tech giants. On the Forbes Billionaires List, Li Ka-shing remains at the top of the Hong Kong rich list with a fortune of USD 34.9 billion, ranking 23rd globally.
In recent years, as the group’s business has become increasingly internationalized, its focus has shifted to Europe. Additionally, the company has previously sold several properties in Hong Kong and China, and in 2015 underwent another major restructuring, relocating its registration from Hong Kong to the Cayman Islands, which has again sparked market speculation about Li Ka-shing's "capital flight."
At the press conference, when asked about capital flight, the "Superman" directly stated, "Only those lacking basic economic knowledge talk about capital flight."
Real Estate and Fixed Income Investments Go Hand in Hand
In recent years, CK Asset Holdings has not only focused on real estate but has also increased investments in fixed income to diversify its business and achieve more stable returns. The company’s performance report predicts that this year’s fixed income earnings will increase by over 50% compared to 2016. The group will actively increase fixed income in the future, and it is expected that in the coming year, it will further solidify the group’s fixed income base. Unless there are extraordinary circumstances, the new fixed income generated will offset the impact of reduced land development income.
Hong Kong's "Superman" Li Ka-shing has written a legendary chapter in business history with over 70 years of experience. As a barometer of the Hong Kong business community, every move of Li Ka-shing can create significant ripples. Besides being a real estate tycoon, his numerous successful investments in other fields have also been widely discussed, earning him the title of "Investment Master." Now that Superman has announced his retirement, it may also signify the end of an era!
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