ZCZC
BCN-25
HONGKONG-ECONOMY-INVESTMENTS-BILLIONAIRES-CHINA
Hong Kong’s super rich took a $20 bn beating in 2018: Forbes
HONG KONG, Feb 14, 2019 (BSS/AFP) – China’s slowdown, trade tensions, stock
plunges and a softening of the world’s least affordable property market
helped wipe some $20 billion from the fortunes of Hong Kong’s wealthiest last
year, Forbes has reported.
The southern Chinese financial hub boasts entrenched income inequality with
one of the highest concentrations of billionaires in the world.
But the ultra-wealthy had an uncharacteristically tough year in 2018
according to the latest list of the city’s 50 richest tycoons published by
Forbes late Wednesday.
The group’s combined wealth fell just over $20 billion to $286.75 billion
in 2018, a marked contrast to the year before when they grew by a collective
$60 billion to $307 billion.
Pollyanna Chu, one of the city’s most prominent female entrepreneurs,
witnessed the sharpest decline in personal fortune according to Forbes’
estimates — a 75 percent drop to $3.3 billion.
Her wealth via financial powerhouse Kingston Financial was especially
vulnerable to the torrid trading on Hong Kong’s stock market which plunged
9.4 percent last year.
Galaxy Chairman Lui Che-woo lost $4.2 billion while Macau casino share
prices significantly dented the fortunes of Pansy Ho and her younger brother
Lawrence Ho.
Analyst Dickie Wong from Kingston Securities said the wealth of the city’s
tycoons were often intimately linked to stock market’s fortunes. But he added
there were other headwinds on the horizon.
“The slowing down (of China’s) economy and also the trade war between China
and the US — these two will remain key uncertainties if we talk about the
economy and the stock market this year,” he told AFP.
Trade tensions have already hit some of Hong Kong’s wealthiest.
Yeung Kin-Man and Lam Wai Ying, the husband and wife team behind Biel
Crystal, the largest maker of iPhone screens, saw their net worth plunge some
$6.4 billion, or 57 percent. Apple has seen sluggish sales recently,
particularly in China.
Hong Kong’s wealthiest man Li Ka-shing, who has dominated the list ever
since it first came out in 2008, saw some $4 billion wiped off his wealth.
But with $32 billion he still remains ahead of property magnate Lee Shau Kee
on $30 billion.
After a decade of near continual growth Hong Kong’s overheated property
market has begun to cool with prices falling by some 10 percent in the last
four months and many analysts predicting further drops of trade tensions
between Washington and China continue to buffet confidence.
One major winner from the last year was oyster sauce tycoon Lee Man-tat.
His wealth doubled to $17.1 billion making him the city’s third richest
tycoon.
Forbes compiles their estimates for personal wealth using information from
the individuals, stock exchanges, analysts, private databases, government
agencies and other sources.
BSS/AFP/HR/1410