# Hong Kong's Superman - The Li Kar Shing Empire



## trueapprentice (Aug 12, 2005)

A dedicated thread on HK's most influencial billionaire tycoon, his family & range of businesses' news

Li Ka Shing, 李嘉誠, born July 29, 1928. Current Chairman of Cheung Kong Holdings, Networth US$18.8 Billion, Forbes 10th Richest Person in the World.

Considered one of the most powerful figures in Asia, Li was named "Asia's Most Powerful Man" by Asiaweek in 2000.

Li's businesses are dominant in every facet of life in Hong Kong, from electricity to telecommunications, from real estate to retail, from shipping to the Internet. It is often said that for every dollar spent in Hong Kong, 5 cents goes into the pocket of Li Ka-shing. The Cheung Kong Group's market capitalization is HK$766 billion ($100 billion USD) as of 2005 (This includes double counting - eg. Cheung Kong has a market cap of HKD 195 billion as of 2006 and Hutchison Whampoa has a market cap of HKD 338 billion as of 2006 but actually HKD 170 billion of Cheung Kong market cap would have been due to its holding of 49.9% of Hutchison Whampoa Ltd. ). The Group operates in 54 countries and employs over 220,000 staff worldwide.


"From his humble beginnings in China as a teacher’s son, a refugee, and later as a salesman, Li provides a lesson in integrity and adaptability. Through hard work, and a reputation for remaining true to his internal moral compass, he was able to build a business empire that includes: banking, construction, real estate, plastics, cellular phones, satellite television, cement production, retail outlets (pharmacies and supermarkets), hotels, domestic transportation (sky train), airports, electric power, steel production, ports, and shipping" --- Harvard Business School 










LINK TO LI KA SHING FOUNDATIONS:

http://www.lksf.org/eng/

LINK TO CHEUNG KONG HOLDINGS LTD:

http://www.ckh.com.hk/eng/index.htm


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## trueapprentice (Aug 12, 2005)

Hutchison unit to double UK stores

Mark Lee 

Wednesday, October 25, 2006

British mobile telecoms operator 3 UK, a unit of tycoon Li Ka-shing's flagship Hutchison Whampoa (0013), said it will acquire 95 stores from a rival operator and open another 30 outlets by the end of this year, nearly doubling its sales outlets in the UK.
Mobile firm O2, wholly owned by Spanish telecom operator Telefonica, agreed to sell to 3 UK, 22 of its stores, as well as 73 that are operated by a unit, Link Stores, for an undisclosed amount, 3 UK said Tuesday. 

Company spokesman Edward Brewster said 3 UK will also add another 30 stores by year's end. Following these store acquisitions and additions, 3 UK will have more than 280 outlets in the UK. 

The company has 31 standalone stores as well as 133 other point-of-sales in the premises of its retail partners.

"A lot of [British] mobile operators are expanding their store networks in an attempt to sign up better quality customers," said Damien Chew, a London-based analyst at ING Wholesale Banking. "3 UK's move is part of an on-going trend in the industry."

Chew said the store disposal by O2 represents efforts by the company to restructure its store network following the acquisition of Link Stores in September. "There are some store overlaps between O2 and Link." 

Hutchison reported its third generation mobile telecoms business, including 3 UK, made an operating loss of HK$12 billion in the first half, compared with HK$20 billion a year ago. 

Hutchison, which had expected to report positive earnings before interest and tax in its 3G business by the second half of next year, was forced to move back the target to 2008, partly due to difficulties at 3 UK, where subscriber growth had slowed.

At end August, 3 UK had 3.75 million subscribers, up 4 percent from the start of the year. Hutchison, which also operates 3G businesses in eight other countries, had a worldwide 3G subscriber base of 13.5 million as of August.

"The UK market is one of the most competitive in Europe, and conditions will remain tough for all operators," Chew said.

Separately, Hutchison Telecommunications International (2332), which is 49 percent-owned by Hutchison Whampoa, said it has been awarded a 3G license by the Macau government. 

HTIL will invest 300 million pataca (HK$291.26 million) to build a 3G network using the Wideband Carrier Division Multiple Access standard. The Macau government also awarded a 3G license to China Unicom (0762).


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## hkskyline (Sep 13, 2002)

Li's empire has irked some Hong Kong politicians over fears of a monopoly in some local industries. Even the Americans raised their eyebrows when he won rights to develop ports on both sides of the Panama Canal.


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## trueapprentice (Aug 12, 2005)

When you are THAT rich, its hard not to become a Monopoly  

I'm sure the govt will have policies inplace to stop them from becoming Oligopolies 

Yes, when Li's eldest son got kidnapped, the Chinese mainland govt responded quite swiftly & captured the kidnappers & eventually got executed


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## trueapprentice (Aug 12, 2005)

18 May 2005 

*HKU Proposes Naming its Medical School as Li Ka Shing Faculty of Medicine (Press Release) *

Following reports two weeks ago that the University of Hong Kong (HKU) received a pledge from the Li Ka Shing Foundation for a benefaction of HK$1 billion, HKU announced today (May 18) that its Council, at a meeting held this morning, formally accepted the donation. 

The Council at the same time resolved unanimously to propose to the donor that the Faculty of Medicine be named the HKU Li Ka Shing Faculty of Medicine. This is to recognize the generosity of Mr Li and his Foundation as well as the wish of the donors to support, in addition to the general development of the University, research and academic activities in medicine. The decision of the Council has the support of the Faculty of Medicine and the Senate. 

The Chairman of the HKU's Council, Dr Victor Fung, said after the Council meeting, "The naming of the Faculty of Medicine is a recognition not only of the generosity of Mr Li and the Li Ka Shing Foundation, but also of the achievements and contributions of the HKU Medical Faculty in the past and a commitment to its future endeavours. Mr Li has always had the utmost regard for the HKU and its medical school and this will be a strategic partnership of excellence, between a premier institution and an outstanding philanthropist. This will definitely bring HK's higher education to a new plane of development and enhance its leading position in Asia." 

The Vice-Chancellor Professor Lap-Chee Tsui added, "This naming of a Faculty is unprecedented in the University and sets a new milestone of close collaboration between higher education and the community in Hong Kong. " 

The Faculty of Medicine at HKU is committed to the excellence of medical education and research. High quality education and research development projects demand substantial and long-term investment in terms of both talents and resources. Mr Li's donation is opportune in setting a firm foundation for the Faculty's forthcoming grand development plan. Mr Li's support to higher education will soon be echoed by supports from the Government and other parts of the community.


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## trueapprentice (Aug 12, 2005)

Some businessmen build new empires; others begin new eras. In 1979 Li Ka-shing, then 51, bought control of the property and trading conglomerate Hutchison Whampoa from the Hongkong & Shanghai Bank, thereby writing a new chapter in Hong Kong's history. Li said he wanted Hutchison primarily for the development potential of its large Hong Kong land holdings. W.R.A. Wyllie, then Hutchison's chief executive, told Time the bank was being politic, "preferring to see [Hutchison] move into Chinese control."

Others saw the deal as an overdue passing of the mantle to a community eager and able to take over the colony's large businesses. Li has more than measured up to that early challenge. His Cheung Kong Group today accounts for about 10% of the total market capitalization of all Hong Kong publicly quoted companies. His net worth, an estimated $5.9 billion, makes him one of the richest men in the world.

The story of Li's rise belongs to the burgeoning chronicle of successful Overseas Chinese tycoons. Two years after he moved to Hong Kong from Shantou in southern China as a 12-year-old, his father died. Li worked 16-hour days selling plastic belts and watchbands to support his mother and two siblings. In 1950, at 22, he started Cheung Kong, making plastic combs and soapboxes. When his landlord kept raising the rent, Li bought his own factory and an apartment building. Early on, he avoided the peril of excessive debt that proved the undoing of many other local-property companies: by giving landowners a share in future profits, he got around the heavy obligation of paying up-front for land.

A keen poker player, Li has displayed a steady nerve in corporate battles. In May 1988 he threatened a takeover bid for Hongkong Land, a premier local-property company owned by Jardine Matheson. It turned out he was bluffing, and his bluff paid off. Li forced Jardine to buy back his stake in the company without his taking any substantial losses. In 1991, betting that the broadcast business was about to take off, Li, with his son Richard, started star tv, a satellite service, beaming reruns of American daytime soap operas to Asian viewers. A couple of years later, he sold nearly two-thirds of the business to Rupert Murdoch for about $525 million, netting yet another impressive profit --and adding another chapter to the legend of his success. 

--- Source --- http://www.time.com/time/asia50/b_tyco1.html


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## trueapprentice (Aug 12, 2005)

*Li leaps to 10th on richest list*

Hong Kong tycoon Li Ka-shing, whose companies operate businesses from ports to telecommunications in dozens of countries, jumped 12 places to 10th position on an annual list of the world's richest people compiled by Forbes magazine, after his wealth rose 44 percent on buoyant stock prices.
Li, 77, chairman of Cheung Kong (Holdings), is now worth US$18.8 billion (HK$146.64 billion), compared to US$13 billion last year. 

"It primarily reflects an increase in the valuation of his listed assets," said Justin Doebele, a Singapore-based contributing editor at Forbes. 

Shares in Hutchison Telecommunications International, of which Li controls 49.9 percent, nearly doubled in the 12 months to January, when the survey was conducted. Li also benefited from a HK$10.1 billion sale last year of a 19.3 percent stake in the company to Egyptian firm Orascom Holdings.

Li's wealth was boosted by the increased value of shares in his flagship companies Hutchison Whampoa and Cheung Kong, which appreciated by 13 percent and 15 percent, respectively.

Doebele said Li, who controls 35 percent of Canada's Husky Energy, gained from continued high energy prices, as well as increases in property prices in Hong Kong.

Property prices rose by an average 6.8 percent in the city last year, according to government statistics, despite several rises in mortgage rates.

After Li, the next highest-placed Hong Kong billionaires were brothers Walter, Thomas and Raymond Kwok of Sun Hung Kai Properties, Hong Kong's largest developer. The Kwoks placed 35th overall as their wealth increased 9 percent to US$11.6 billion. Lee Shau-kee, chairman of Henderson Land Development, placed 37th with a fortune estimated at US$11 billion.

The year's fastest riser in Hong Kong was Shun Tak Holdings chairman Stanley Ho, whose US$6.5 billion fortune, up 80 percent over the year, earned him 84th place. Ho, who also controls the biggest casino operator in Macau, is one of the prime beneficiaries of Macau's gaming-induced boom.

Microsoft chairman Bill Gates remained top of the Forbes list for the 12th successive year with a fortune of US$50 billion. Investor Warren Buffett was second with US$42 billion.

Despite his rapid rise this year, Li failed to unseat Indian steel tycoon Lakshmi Mittal as the world's richest Asian. Mittal's US$23.5 billion fortune placed him fifth.

Hong Kong was home to 17 US dollar billionaires out of a worldwide total of 793, according to Forbes. Joseph Lau of Chinese Estates, who has US$1.7 billion, and K Wah Construction chairman Lui Che-woo, who has US$1.5 billion, achieved billionaire status for the first time this year.

Nine billionaires hail from the mainland, up from four a year before. The richest mainlander was Shi Zhengrong, founder of Nasdaq-listed Suntech Power, who has US$2.2 billion. Since listing last December, shares in the solar- powered fuel cells provider have more than doubled in price.

CITIC Pacific chairman Larry Yung, former No1 in the mainland, now shares second with Wong Kwong- yu, chairman of Gome Electrical Appliances. Each has US$1.7 billion.

Other mainland business leaders deemed to be worth more than US$1 billion include William Ding, chief executive of Internet portal NetEase, and Zhu Mengyi, chairman of property group Hopson Development. 

MarkLee 
Saturday, March 11, 2006


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## trueapprentice (Aug 12, 2005)

*Li ban puts sale of PCCW in doubt*

Tom Mitchell, Hong Kong 
November 02, 2006

*RICHARD Li has been barred from voting on the proposed $US1.2 billion ($1.55 billion) sale of Hong Kong's leading telecoms firm, PCCW, in a decision that gives minority shareholders in his Singapore-listed holding company the power to block the controversial transaction.*

In a statement, Pacific Century Regional Developments (PCRD), which is 75-per-cent held by Richard Li, said Singapore's stock exchange had not received a guarantee that Li Ka-shing, Richard's father and Hong Kong's richest man, would not be involved in a consortium looking to buy PCCW. 

In the absence of such an assurance, Singapore Exchange (SGX) ruled that Richard Li must abstain from a shareholders' vote on the transaction. 

The consortium that wants to buy PCCW is being organised by Francis Leung, a prominent Hong Kong investment banker and confidant of Li Ka-shing. In July, Mr Leung agreed to pay PCRD $US1.2 billion for its 23 per cent stake in PCCW. 

Had Richard Li been allowed to vote, passage of the deal would have been assured. Its fate now lies in the hands of PCRD's minority shareholders. SGX and Mr Leung declined to comment. 

SGX's ruling will reinforce suspicions in Hong Kong that Mr Leung is fronting for Li Ka-shing in the transaction. 

When the sale was announced in July, Richard Li and Mr Leung said that Li Ka-shing was not involved. At a company results briefing in August, Li Ka-shing reiterated that claim. 

In September, however, PCRD revealed that Li Ka-shing had provided Mr Leung with a bridging facility to pay a $US64 million deposit. But the company argued that because the arrangement had been temporary and the loan already paid back, the proposed sale should not be deemed a related-party transaction. 

In their July agreement, Mr Leung agreed to pay PCRD $HK6 a share - a level that PCCW's shares have not traded at in more than two years. But hedge funds, that have been building up positions in PCRD, are in a position to extract better terms from Richard Li or pressure him to pay them a special dividend - something he has promised PCCW's shareholders. The handsome premium Mr Leung has agreed to pay for PCCW's shares has fuelled speculation that he will turn to Li Ka-shing for help.


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## trueapprentice (Aug 12, 2005)

Suntec sale raises S$180m

Chan Sue Ling 
2006-10-30


SUNTEC REIT, one of Hong Kong billionaire Li Ka-shing's two property trusts in Singapore, raised S$180 million (US$115 million) selling new shares on Friday, Bloomberg News reported. 

The company offered 120 million new shares at S$1.50 each, the middle of the S$1.48 and S$1.52 range offered to investors, the manager of the trust said in a statement to Singapore's stock exchange. The price was a 3.2 percent discount to the last traded price of S$1.55 as of 2:45pm on Friday. 

Suntec REIT is expanding as Singapore's office rents recover from their lowest level in a decade and could pass their 1996 peak, reaching S$11 a square foot by 2008, according to UBS AG.


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## Manila-X (Jul 28, 2005)

There was a saying back during the mid-90s that Li Ka Shing was planning to move to Singapore because of uncertainty during the HK's handover to China. But never happened and remained in the region.


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## hkskyline (Sep 13, 2002)

Li had so much business in China. He would never leave, even in the 1990s. In fact, Hong Kong's property market was booming up to the handover, so it didn't make sense that he would pack up and go. Where did you hear that rumor?

Even Jardine had to apologize to China for moving their listing to Singapore. They saw their trading volumes drop as their investors didn't follow them.


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## trueapprentice (Aug 12, 2005)

Leung disputes Li PCCW statement

Benjamin Scent 

Wednesday, November 22, 2006










Dealmaker Francis Leung Pak-to disputes PCCW (0008) chairman Richard Li Tzar-kai's claim that he did not know his father Li Ka-shing was involved in purchasing part of the 22.65 percent stake in PCCW that was being sold to Leung or to a consortium put together by him.
Leung said Tuesday he told the younger Li more than a month before the consortium was finalized that his tycoon father's charities might become part of the group.

"Contrary to certain allegations, I have never undertaken to not sell PCCW shares to any particular person," Leung said in a statement in response to recent media reports.

"Mr R Li told me he did not wish for [his father's involvement]."

At that point, Leung said he offered to abandon the HK$9.16 billion deal, given the difficulty in finding alternative buyers. He also gave the PCCW chairman the option of suggesting buyers in place of Li Ka-shing's foundations, or making an alternative proposal.

"By that time, it was not practical to consider alternative transactions," a spokesman for Richard Li told The Standard late Tuesday.

After Richard Li did not take up any of the suggestions, Leung said he proceeded to sell most of the 22.65 percent PCCW stake to two Li Ka-shing charities and to Spanish telecom giant Telefonica.

Leung, who agreed to the PCCW deal in July, said the acquisition was never his idea in the first place.

"I would like to point out at the outset that it was Mr Richard Li Tzar-kai who first asked me to consider acquiring [the stake]," Leung said.

He added Li even suggested a method of raising financing - through a private equity fund - and offered a flexible installment plan that would give him 18 months to pay.

At the time, Leung had not received any commitments from other potential investors, but was "confident" he could find some.

In a letter to the Legislative Council last week, Richard Li said he had no prior knowledge of his father's involvement in the PCCW stake sale in the initial stages, and would have removed himself from negotiations had he known. 

He added he would have formed an independent committee to assess the merits of Leung's offer, along with the benefits to minority shareholders of his Singapore-based Pacific Century Regional Developments, which holds his 22.65 percent controlling stake in PCCW.

Contacted Tuesday night, Richard Li said Leung's latest statement "does not contradict" his [Richard Li's] version of events. "He confirmed to me no involvement of KS Li before and immediately after the agreement was signed in July," the younger Li said in a telephone interview. "But he did disclose to me his involvement before announcement of the consortium some time September 2."

PCRD announced July 18 that no immediate family members of Richard Li were providing financing to Leung.

However, Leung's lawyers promptly told the Singapore stock exchange that Li Ka-shing had provided a HK$500 million bridge loan, which Leung used to make a deposit on the purchase. PCRD minority shareholders will vote on the PCCW stake sale at an extraordinary general meeting November 30.


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## DonQui (Jan 10, 2005)

What is this doing in Citytalk?

:sly:


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## trueapprentice (Aug 12, 2005)

*Richard Li hopes PCRD will reject PCCW sale *

In the latest twist of a complicated deal, Singapore-listed Pacific Century Regional Developments chairman and controlling shareholder Richard Li Tzar-kai hopes the company's minority shareholders will reject the sale of its PCCW stake, sources familiar with the situation said, since he considers the deal has become too politicised. 

廣 告


The offer, sparked by bids from private funds TPG-Newbridge and Macquarie, now involves mainland firm China Network Communications and Li Ka-shing, the father of Richard Li. 

"It's better for the company to go back [to PCRD] rather than being part of some murky transaction," the source said yesterday. 

The first sign that the deal became political emerged when China Network, the mainland's second-largest fixed-line operator that holds 20 per cent of PCCW, voiced opposition to the sale of PCCW's assets to foreigners. 

Former investment banker Francis Leung Pak-to then stepped in, offering to buy the 23 per cent PCCW stake from PCRD in a move market watchers said was to ease China Network's concern. 

Further controversy emerged when it was disclosed that Li Ka-shing provided financing to Mr Leung for the deposit of the purchase. 

Li Ka-shing's foundations then agreed to buy 12 per cent of PCCW, even though Mr Leung initially said Li Ka-shing was not involved. 

The deal also raised concerns among Hong Kong lawmakers who will meet this week to discuss the transaction. 

PCRD will hold a special shareholders' meeting on November 30 to seek minority shareholder approval of the HK$9.2 billion transaction. The company's independent directors recommended the shareholders vote for it. 

Li Ka-shing's involvement has disqualified Richard Li, who owns 75 per cent of PCRD, from voting in the transaction. Richard Li declined to comment yesterday. 

Mr Leung's financial backers also include Spanish telecommunications firm Telefonica, a strategic shareholder of China Network's Hong Kong-listed vehicle China Netcom. 

Mr Leung yesterday issued a statement saying he has informed Richard Li of his difficulties before the finalisation of the investor list, as some shares of PCCW will be sold to the Li Ka-shing foundations.


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## trueapprentice (Aug 12, 2005)

*PCCW boss on campaign trail for election body polls*










Carrie Chan
Saturday, November 25, 2006

*PCCW chairman Richard Li Tzar-kai has stepped up the campaign of his "IT 20" team for next month's Election Committee election by visiting electors at the City University of Hong Kong in Kowloon Tong. 
Li's team of 20 candidates is hoping to be returned en masse for the information technology subsector in which 39 candidates are vying for 20 seats.*

Li, who appeared to be unaffected by the fact the controversial sale of his PCCW stake was hanging in the balance, had earlier launched his campaign to meet voters for the December 10 poll at a private clubhouse at Dorset House, which is adjacent to the PCCW Tower in Quarry Bay. 

Li said he would soon appeal to his staff who are eligible voters in the IT subsector. 

"Certainly, I look forward to their support," Li said Friday. 

During the reception, Samson Tam Wai-ho, the convenor of IT 20 and chairman of Group Sense, appealed to the IT voters for a bloc vote for the 20 candidates. 

Tam also revealed it was not until the team was almost set that Li volunteered to join them, clarifying suggestions that IT 20 was Li's line-up. 

Another leading IT 20 candidate, Paul Kan Man-lok, chairman of Champion Technology Holdings, said Li was extremely popular with the academic voters at City University.

"The professors recommended their innovative IT ideas to the PCCW boss, while a party of young students in their graduation gowns and caps invited Li for their group photos," Kan said. 

Li was energetic with his canvassing but was tight-lipped when asked to comment on what his rivals were saying about him. He referred sharp questions to Kan and kept his trademark smile.

IT 20 comprises veteran private and public IT professionals, IT tertiary academics and telecommunication heads from Hutchison and Sunday. Kan said if IT 20 were returned as a bloc, the team would have a stronger voice when discussing the sector's future development with the chief executive.

Meanwhile, Civic Party barrister- legislator Alan Leong Kah-kit is expected to announce his views on air pollution Sunday as part of his election campaign


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## ChinaboyUSA (May 10, 2005)

He is a Hong Kong legend.


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## trueapprentice (Aug 12, 2005)

Li response awaited on media ownership issue

Wendy Leung and Benjamin Scent

Friday, January 12, 2007

The broadcasting regulator expects a reply from beleaguered PCCW (0008) chairman Richard Li Tzar-kai within two or three weeks, after he was asked to provide information on one of his companies as part of the regulator's investigation into possible violations of cross-media ownership laws. 
The Broadcasting Authority asked Li Friday to provide information on the voting controllers of PCCW Media, a subsidiary of PCCW that runs the pay service Now TV.

"According to the broadcasting ordinance, there is no definite deadline for the company to submit the information," said Marion Lai Chan Chi- kuen, deputy secretary for commerce, industry and technology, Thursday.

"But the Broadcasting Authority did set a deadline for them and it's in about two to three weeks," she said at a special meeting of the Legislative Council's information technology and broadcasting panel.

Li refused to attend the meeting but issued a confidential letter to Legco members that cannot be released to the public or media, panel chairman Albert Cheng Jing-han said. Discussion about the letter among legislators and the government must be private, he said.

Legco members, however, have the right to decide to deliver a copy of it to the government.

Legislators voted to do so.

Lai said the government will further discuss the letter with Legco members after officials have read it.

According to the Broadcasting Authority Ordinance, any entity holding a television license that also holds more than 15 percent of another media company's voting rights needs to apply for a waiver from the Executive Council, or it will be disqualified from holding a TV service license.

Li drew the attention of Legco members and the broadcasting regulator last August when he purchased a 50 percent stake in the Chinese-language Hong Kong Economic Journal for HK$280 million through an offshore trust. 

"Mr Richard Li has reportedly been exercising control over Hong Kong Economic Journal by signing new staff- employment contracts and there seems to be prima facie evidence that Mr Li is thus disqualified from controlling a company with a television license," legislators said at a previous panel meeting.

PCCW shares closed Thursday at HK$4.76, down 2 HK cents


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## trueapprentice (Aug 12, 2005)

Cheung Kong seeking to build up war chest

RaymondWang 

Wednesday, January 24, 2007


Cheung Kong (Holdings) (0001), Hong Kong's second-largest developer by market value, plans to build up its war chest and put itself in a strong position to compete for property tender projects of nearly HK$10 billion, sources said.
With its financial clout, Cheung Kong, the biggest landlord in Tseung Kwan O, is expected to be one of the front-runners to bid for the HK$8 billion residential-retail-hotel project above Tseung Kwan O MTR station early next month.

The winning bidder for the project, located in Tseung Kwan O Area 56, will have to pay the government an estimated HK$4 billion land conversion premium later this year, sources said.

Cheung Kong is also keen to lodge a bid for this month's tender for Merry Terrace - a residential building on Seymour Road in the Mid-Levels, which analysts expect will fetch nearly HK$5 billion. 

The property is near the 13-year-old Goldwin Heights development at 2Seymour Road, developed by Cheung Kong.

Apart from considering raising funds through loans, Cheung Kong has been replenishing its land bank partly from internal resources.

Cheung Kong's total borrowings increased to HK$33.4 billion as of end June last year, with HK$6.2 billion due within a year.

Cheung Kong may borrow HK$5 billion to refinance debt and raise funds for expansion, Bloomberg reported Tuesday, quoting unnamed bankers.

The developer has invited banks to submit proposals for a five-year loan, which will replace a HK$1.8 billion credit facility due in August, Bloomberg said. 

A Cheung Kong spokeswoman was unavailable to return calls Tuesday.

The company is set to bid aggressively for next month's Tseung Kwan O tender after winning development rights to the first two phases of Dream City in Tseung Kwan O's Area 86,according to one source.

"Cheung Kong is likely to offer the best financial terms for the Tseung Kwan O project in order to beef up its foothold in the district," the source added.

Potential competitors include other major property developers including Sun Hung Kai Properties (0016), Henderson Land Development (0012), New World Development (0017), Sino Land (0083), Hang Lung Properties (0101), KWah International Holdings (0173), Kerry Properties (0683), Nan Fung Development and Wharf Holdings (0004). 

Developers must pay a premium to change land use and, for railway tenders, present their financial terms, including a profit-sharing scheme, as well as bear all the costs of development, including land premium, construction and financing. 

The winning bid will be based mainly on how the profits from future flat sales are split between the developer and the railway company. 

Shares of Cheung Kong fell 2.8 percent Tuesday to close at HK$105.80


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## trueapprentice (Aug 12, 2005)

*Cheung Kong, Hutch in $3.6b Shanghai push*

Raymond Wang 

Wednesday, January 31, 2007

Cheung Kong (Holdings) (0001) and associate Hutchison Whampoa (0013) plan to invest HK$3.6 billion in a housing project in Shanghai, shrugging off concerns over further macroeconomic tightening measures that are likely to impact the real estate sector.
The companies, controlled by Li Ka-shing, said Tuesday they will pay HK$2.2 billion for a 177,261-square- meter site in Shanghai's Putuo district.

The remaining investment is set aside for building and other project costs, according to a joint statement to the Hong Kong stock exchange.

A residential-commercial complex will be built on the site. 

Hutchison will take a 51 percent stake in the project, while Cheung Kong owns the remainder. 

Detailed development plans have not been disclosed.

"The joint-venture project is consistent with one of the core-business strategies for the firms," said Eirene Yeung, Cheung Kong company secretary.

Beijing's measures to put the brakes on rampant speculation in the residential market have not deterred the expansion plans of Cheung Kong and Hutchison, as the two have come together for 13 property joint ventures in Beijing, Tianjin, Wuhan, Chongqing, Chengdu, Shanghai and other cities over the past two years. Their outlays exceed HK$14 billion.

Potential projects for Hutchison include a proposed HK$2.1 billion yacht and resort complex in the Guangdong city of Jiangmen. 

The group also aims to almost double the proportion of revenue from mainland projects in the next five years, Li, chairman of both companies, told Forbes magazine. 

The central government has made further attempts to cool the mainland's overheated property market in some cities. 

China's State Administration of Taxation will from next month more strictly enforce the law on land appreciation tax.

A tightening drive in the property market will continue until the central government deems that its targets have been largely achieved, a banker said.

"High property prices are a major problem, and containing the threat of a property price bubble is a major target of the tightening measures so far seen," said Liao Qun, vice president and chief economist/strategist of China Banking for CITIC Ka Wah Bank.

He said two major measures not yet introduced but under consideration are a real estate tax and ending property presales. These remain policy options in the future.

"But given the government's incremental approach and its objective of achieving a soft landing for the market, it is likely that at least in the near future, the tightening efforts will focus on pushing for the effective implementation of the measures introduced so far and ensuring that these take full effect," he said.


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## trueapprentice (Aug 12, 2005)

*Cheung Kong tips Tung Chung hand in plan for site bid -*

Raymond Wang 
Saturday, February 03, 2007

Cheung Kong (Holdings) (0001) is keen to trigger for auction a parcel of residential land in Tung Chung worth HK$2 billion in order to bolster its presence in the district.
It is the first time that Hong Kong's largest developer by sales has indicated an interest in a specific site on the government's land application list of land sales.

Cheung Kong has its sights set on a 3.29-hectare site in Tung Chung Area 56 on Lantau, which analysts expect will fetch about HK$2 billion.

The site will be available as early as next month, according to the Lands Department. 

Under the application list system, a developer must make a bid that is at least 80 percent of the government's own estimate for a site to be triggered for sale. 

"We are very interested in the Tung Chung site, which is near our Caribbean Coast residential development in the same district," said Justin Chiu Kwok- hung, executive director of Cheung Kong. 

He said a housing project with potential for 1,800 residential units can be built on the site.

"We are familiar with the Tung Chung housing market and that experience will be an advantage to us in strengthening our foothold there," he said.

Chiu did not make a price prediction for the site pending an announcement of details, including conditions of sale.

He said there are more than 1,000 residential units for sale in Tung Chung, which are likely to be absorbed by the market this year. "If all the units are sold, no new projects in Tung Chung are expected to be launched for a period of time," he added.

He said the Tung Chung district is well provided with infrastructure facilities, which is good for developers wanting to buy land in the area.

Deputy chief manager for sales Joseph Lau Kai-man said the company has sold more than 200 flats at its 824-unit Crystal Cove project, the third phase of the Caribbean Coast development in Tung Chung, since public sales started a week ago. 

Cheung Kong has been active in replenishing its land bank through land auctions. 

It bought a residential site in Ma On Shan for mass residential housing for HK$3.24 billion at November's auction. The company reaped more than HK$1 billion from selling about 300 residential units in Hong Kong last month, Chiu said.

Shares of Cheung Kong rose 1.03 percent Friday to close at HK$107.


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