Hong Kong’s tycoons get even richer
Friday, 5 February 2010.
Combined wealth of city’s 40 richest capitalists bigger than New Zealand’s GDP
chinaworker.info
US$135 billion (HK$1.05 trillion) – this is the net worth of Hong Kong’s top capitalists last year. Their personal fortunes swelled by US$53 billion or 65 percent, according to Forbes Asia magazine.
Considering that in common with most economies Hong Kong was in a deep recession, its GDP shrinking around 3.5% in 2009, this was some achievement. It is also in stark contrast with most of the territory’s 7 million inhabitants. Real wages for non-managerial workers across all industries fell 2.6 percent last year.
So, how was it done? Apart from squeezing even more profits out of fewer workers in Hong Kong’s notoriously long-hours-low-pay economy, the main factor was mainland China’s stimulus policies, which created huge opportunities for financial speculation in property and other assets. Forbes, the list’s compiler, notes that more than a dozen of the richest 40 have substantial property investments. And many of Hong Kong’s tycoons increased their investments in the mainland, mostly in buildings, shops and hotels, reports The Standard in Hong Kong (5 February).
Hong Kong is home to the richest group of rich people in Asia, followed by mainland China in second, and Japan in third place. The total combined fortunes for the 40 wealthiest individuals were US$135bn, US$106bn, and US$87bn respectively. The South China Morning Post points out that the Hong Kong rich-set’s US$135bn is greater than the GDP of New Zealand or Vietnam, and equal to 60 percent of Hong Kong’s GDP. To look at it another way, if this wealth was confiscated and spent on public projects, it could pay for Hong Kong’s controversial Express Rail Link more than 16 times over. Not that we are suggesting this would be the best use of the money.
But the billionaires may actually plead hardship. They still have some way to go before recouping all their losses from the global capitalist crisis to match the record high of US$179bn combined wealth they had amassed two years ago. This plummeted to $82bn last year before the Chinese ‘communist’ regime came to the rescue with its bumper stimulus plan, spending the equivalent of almost one-third of China’s GDP to lift growth mostly through re-igniting the property market, but with around a quarter of spending also going into infrastructure.
The turnaround in Hong Kong’s property market also boosted tycoon’s wealth. Henderson’s stock price doubled, helping lift chairman Lee Shau-kee to become Hong Kong’s second-richest man - surpassing the Kwok family of Sun Hung Kai Properties. Henderson broke a world record in October selling a Hong Kong duplex apartment for US$57 million. The buyer was a wealthy speculator from mainland China, and mainlanders accounted for around one in four purchases in Hong Kong’s luxury housing market.
Once again “Superman” Li Ka-shing of Cheung Kong (Holdings) topped the list, with his wealth growing more than US$5.1 billion to US$21.3 billion. Li’s business empire includes property, telecommunications, shipping, supermarkets and convenience stores. It is said that one in every seven dollars spent in Hong Kong ends up in his pocket.
“Sir Gordon” Wu Ying-sheung, chairman of Hopewell Holdings, came in 38th on the list, as his company posted a 171 percent increase in net profit. “Sir Gordon” is one of the most outspoken of Hong Kong’s tycoon-knights on political matters, making no secret of his disdain for democratic forms of government and universal suffrage (presumably preferring a feudal system, given the prefix to his name). He recently attacked the resignation of five legislators to trigger a referendum-style vote on universal suffrage in Hong Kong, saying this was “just like the red guards did” during Mao’s Cultural Revolution.
chinaworker.info
US$135 billion (HK$1.05 trillion) – this is the net worth of Hong Kong’s top capitalists last year. Their personal fortunes swelled by US$53 billion or 65 percent, according to Forbes Asia magazine.
Considering that in common with most economies Hong Kong was in a deep recession, its GDP shrinking around 3.5% in 2009, this was some achievement. It is also in stark contrast with most of the territory’s 7 million inhabitants. Real wages for non-managerial workers across all industries fell 2.6 percent last year.
So, how was it done? Apart from squeezing even more profits out of fewer workers in Hong Kong’s notoriously long-hours-low-pay economy, the main factor was mainland China’s stimulus policies, which created huge opportunities for financial speculation in property and other assets. Forbes, the list’s compiler, notes that more than a dozen of the richest 40 have substantial property investments. And many of Hong Kong’s tycoons increased their investments in the mainland, mostly in buildings, shops and hotels, reports The Standard in Hong Kong (5 February).
Hong Kong is home to the richest group of rich people in Asia, followed by mainland China in second, and Japan in third place. The total combined fortunes for the 40 wealthiest individuals were US$135bn, US$106bn, and US$87bn respectively. The South China Morning Post points out that the Hong Kong rich-set’s US$135bn is greater than the GDP of New Zealand or Vietnam, and equal to 60 percent of Hong Kong’s GDP. To look at it another way, if this wealth was confiscated and spent on public projects, it could pay for Hong Kong’s controversial Express Rail Link more than 16 times over. Not that we are suggesting this would be the best use of the money.
But the billionaires may actually plead hardship. They still have some way to go before recouping all their losses from the global capitalist crisis to match the record high of US$179bn combined wealth they had amassed two years ago. This plummeted to $82bn last year before the Chinese ‘communist’ regime came to the rescue with its bumper stimulus plan, spending the equivalent of almost one-third of China’s GDP to lift growth mostly through re-igniting the property market, but with around a quarter of spending also going into infrastructure.
The turnaround in Hong Kong’s property market also boosted tycoon’s wealth. Henderson’s stock price doubled, helping lift chairman Lee Shau-kee to become Hong Kong’s second-richest man - surpassing the Kwok family of Sun Hung Kai Properties. Henderson broke a world record in October selling a Hong Kong duplex apartment for US$57 million. The buyer was a wealthy speculator from mainland China, and mainlanders accounted for around one in four purchases in Hong Kong’s luxury housing market.
Once again “Superman” Li Ka-shing of Cheung Kong (Holdings) topped the list, with his wealth growing more than US$5.1 billion to US$21.3 billion. Li’s business empire includes property, telecommunications, shipping, supermarkets and convenience stores. It is said that one in every seven dollars spent in Hong Kong ends up in his pocket.
“Sir Gordon” Wu Ying-sheung, chairman of Hopewell Holdings, came in 38th on the list, as his company posted a 171 percent increase in net profit. “Sir Gordon” is one of the most outspoken of Hong Kong’s tycoon-knights on political matters, making no secret of his disdain for democratic forms of government and universal suffrage (presumably preferring a feudal system, given the prefix to his name). He recently attacked the resignation of five legislators to trigger a referendum-style vote on universal suffrage in Hong Kong, saying this was “just like the red guards did” during Mao’s Cultural Revolution.
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