Li Ka-shing’s Family Launches Sale of Approximately 400 Residential Units in the Guangdong-Hong Kong-Macao Greater Bay Area
Li Ka-shing’s family, through Cheung Kong Holdings, has launched the sale of about 400 residential units in the Guangdong-Hong Kong-Macao Greater Bay Area, sparking heated discussions among Chinese netizens. What kind of future does the “superman of business,” known for “not making the last penny,” foresee?
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Recent Developments
Recently, Li Ka-shing’s family, the wealthiest in Hong Kong, through Cheung Kong Property, concentrated the launch of about 400 residential units for sale in the Guangdong-Hong Kong-Macao Greater Bay Area. The total price of one unit starts from only RMB 400,000 (approximately TWD 1.6 million), which can be considered a clearance sale, immediately igniting discussions among Chinese netizens.
Details of the Properties for Sale
Public information shows that these properties are located in Huizhou, Guangdong (Longpo Garden, about 300 units), Zhongshan (Longpo Garden), Guangzhou (Yicui Villa), and Dongguan (Haiyi Mansion). Among them, a 51 square meter one-bedroom unit in Huizhou’s Longpo Garden saw its price drop from an early range of RMB 10,400 to RMB 14,000 per square meter to about RMB 8,632 per square meter, with a total price of around RMB 443,000. Additionally, the price per square meter for villas in Dongguan’s Haiyi Mansion significantly declined from RMB 44,000 to RMB 68,000 in 2023 to a range of RMB 18,000 to RMB 36,000, showing a substantial decrease. Currently, this low-price strategy has attracted a large number of Hong Kong buyers to purchase properties in the north, with nearly 600 units sold in the Huizhou project.
Unverified Rumor About a Sale
At the same time, an unverified rumor is circulating online, claiming that Li Ka-shing intends to sell his old residence at 79 Deep Water Bay in Hong Kong for HKD 5 billion. If this iconic luxury property is sold, it would represent a significant move in the Li family’s asset adjustment in Hong Kong.
Reasons Behind Li Ka-shing’s Asset Liquidation
As the wealthiest person in Hong Kong, Li Ka-shing holds an extremely important position in the minds of the public in mainland China. This series of liquidations has undoubtedly sparked widespread discussions on Chinese social media, with netizens speculating about the motivations behind Li Ka-shing’s urgency to cash out, given that Hong Kong is an important political and economic stronghold for mainland China. What could the wealthiest man in Hong Kong be foreseeing about the future?
Long-term Pessimism on China’s Real Estate Market
The Li family has been reducing its holdings in mainland real estate in recent years, selling commercial properties in Shanghai, Guangzhou, and other locations since 2013 and shifting investments to the European market. This recent low-price clearance of properties in the Greater Bay Area is widely interpreted by netizens as Li Ka-shing’s pessimistic outlook on the future of the Chinese real estate market.
Challenges in China’s Real Estate Market
The Chinese real estate market has faced high inventory, weak demand, and pressure from policy adjustments in recent years. Many of the projects in Huizhou and Dongguan were developed from land acquired by the Li family at low prices years ago (e.g., the land for Dongguan’s Haiyi Mansion was acquired in 1999). Selling at low prices now may be a means to quickly recover funds and reduce risks.
Sale of Panama Port Raises Concerns
Additionally, some netizens speculate that the sensitivity of the Panama Canal in geopolitics, combined with the strategic competition between China and the U.S. in the region, has led to dissatisfaction from the Chinese side regarding Cheung Kong Group’s plan to sell its Panama port assets (involving 43 ports and logistics networks across 23 countries globally, reaching a principle agreement with a consortium led by BlackRock in the U.S.).
Netizens speculate that the exclusion of Li Ka-shing’s eldest son, Li Tzar-kuoi, from the second Chief Executive Advisory Group announced by the Hong Kong SAR government on June 27 this year is an extension of this conflict. Market analysis suggests that Li Tzar-kuoi’s removal may be related to trade issues in Hong Kong. Although this matter has not been officially explained, offending Chinese authorities could lead to Li Ka-shing facing consequences, prompting an urgent need to divest mainland assets to evade control.
Escalating Risks of War
Moreover, netizens express concern over the ongoing tension in China-U.S. relations, with frequent reports of escalating risks in the Taiwan Strait. The potential risks brought by geopolitics will undoubtedly further impact the already sluggish Chinese real estate market, which may also relate the Li family’s asset adjustments to the uncertainties in geopolitics.
Political Pressure from China on the Li Family
Finally, some netizens subtly indicate the worst-case scenario, suggesting that political forces in China may be attempting to influence the Li family’s business landscape. This is due to the significant changes in Hong Kong’s political and economic environment in recent years, which have enhanced the influence over the Hong Kong business sector. The Li family, due to its large-scale investments in energy and infrastructure in the UK and elsewhere, may have potential divergences with the central government’s economic policy direction.
Netizens point out that as China’s economy faces pressures in recent years, it is not surprising that authorities are turning their attention to business tycoons like Jack Ma and Li Ka-shing, attempting to guide their assets back or adjust them.
Li Ka-shing’s Investment Philosophy: Not Making the Last Penny
Li Ka-shing has adhered to the investment philosophy of “not making the last penny” throughout his life, excelling at cashing out at market peaks and positioning at lows. His success lies in accurately judging market cycles and maximizing wealth through long-term holdings and timely exits.
Chinese netizens commented on this, stating, “Li Ka-shing’s decisions have never been wrong; his alertness to the economic environment is worth learning from.” Others lamented, “Don’t doubt the billionaire’s intuition; by the time ordinary people react, it’s already too late.”
What exactly Li Ka-shing saw in this large-scale divestment of mainland properties remains uncertain, but netizens suggest that the realities of some future day may confirm one of the four aforementioned predictions.
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