10296
HK ‘Superman’ Li Heading to European Markets
World Economy

HK ‘Superman’ Li Heading to European Markets

Famed for his sharp business acumen and knack for perfectly timed investments, Hong Kong billionaire Li Ka-shing is shifting away from a slowing Chinese economy and bargain hunting in Europe.
The move is seen as a quest for stability for the tycoon’s vast empire and a sign of diminishing confidence in the region, AFP reported. His focus is now switching to European and other foreign markets.
The announcement came just over a week ago that he plans to buy UK phone giant O2 for up to $15.4 billion follows prolonged asset offloading in mainland China and Hong Kong – and a major reshuffle of his business empire announced last month.
The 86-year-old, dubbed “Superman”, dismissed talk of a withdrawal from the region as “a big joke” last year. But analysts say that his moves are a reaction to the China slowdown as well as political turmoil in Hong Kong.

 Pastures New
Li has offloaded major property investments on the mainland – where growth slowed to a 24-year low last year – after investing heavily there in the 1990s.
Shortly before the O2 move, Li’s firm Cheung Kong announced it would buy Britain’s Eversholt Rail Group, which owns 28 percent of the nation’s passenger trains, for $3.8 billion.
Li is playing the market with Europe a bargain hunter’s playground, says Pang, head of research at Core Pacific-Yamaichi International.
“He is quite good at timing for acquiring business and assets at the lowest price, this could also be why he chooses the European market at this moment.”
Independent financial analyst Francis Lun adds that the O2 move is a clear sign Li is steering away from Hong Kong and the region.
The major restructuring of his businesses in January also saw assets from multiple sectors combined under two new listed companies to be incorporated in the Cayman Islands.
“He is transferring registration to Cayman Islands, shaving off a lot of his Hong Kong and China assets and investing in what you call politically safe areas,” Lun said.
The revamp of his empire is also largely seen as paving the way for Li to hand over the reins after he retires.
Shares in Cheung Kong and Li’s Hutchison Whampoa – two of Hong Kong’s largest companies – went up more than 10 percent after the reshuffle announcement and have remained stable following the O2 move.

 

Short URL : http://goo.gl/12bIkj

You can also read ...

Blue Economy Movement Gaining Traction in Africa
An increasing number of African countries are now embracing...
There are indications that investments in digital economy will...
Japanese Prime Minister Shinzo Abe (C) speaks as European Commission President Jean-Claude Juncker (L) and European Council President Donald Tusk listen during  a joint press conference at Abe’s official residence in Tokyo on July 17.
Japan and the European Union signed a landmark deal on Tuesday...
The trade war began when Donald Trump introduced tariffs on imported steel and aluminum.
Rising trade tensions between the United States and the rest...
Striking Amazon Employees in Europe Demand Better Working Conditions
Thousands of workers walked off their jobs on Tuesday at...
SNB to Raise Rates in 2019
The Swiss National Bank will continue tracking its eurozone...
The parliament approved a five billion pound start-up capital for the fund called “Egypt Fund”.
Egypt is setting up a sovereign wealth fund with a capital of...
Canada Growth Robust, Housing Sector Cooling
On July 13, the executive board of the International Monetary...

Trending

Googleplus