Hong Kong tycoon Victor Li says city must do whatever it takes to maintain financial hub status

Hong Kong must maintain its hard-fought status as an international financial centre as the city faces headwinds from a global economic turmoil, said Victor Li Tzar-kuoi, chairman of CK Hutchison and CK Asset Holdings, which announced full-year results on Thursday.

“In recent years, Hong Kong’s economy has experienced multiple stress tests, the 2019 demonstrations, then Covid, and now a slowing economy,” Victor Li said at a post-earnings press conference.

“How to respond depends on the Hong Kong government. There are only a few [international financial centres], and Hong Kong has been one of them for many years. It is hard-won. We must not lose this place.”

CK Hutchison, with businesses spanning ports and infrastructure to telecommunications and supermarkets, announced an underlying profit of HK$23.5 billion (US$3 billion), a decline of 9 per cent from the HK$25.74 billion in 2022.

Including one-off items in 2022, the decrease was 33 per cent. These included gains from the disposal of UK tower assets and from the merger of its Indonesian telecoms business. That partly offset the non-cash impairments of the group’s telecoms businesses in Italy and Sri Lanka, and non-cash impairment charges of Cenovus Energy in Canada.

‘Always the first’: CK Asset’s history of foretelling property slumps

CK Asset’s revenue from property sales, including its share in joint ventures, fell 49 per cent to HK$13.15 billion, against HK$25.76 billion in 2022. The company attributed the decrease to the worsening economic conditions and weak property market sentiment in Hong Kong and on the mainland.

“The world’s economic landscape remains challenging [this year] and will continue to be affected by geopolitical tensions, elevated interest rates, inflationary pressure, tight monetary policy, and trade conflicts,” said Victor Li, Li Ka-shing’s elder son, in a filing from CK Asset to the Hong Kong stock exchange.

“Housing policies and interest rate movements will continue to be determining factors for the property market.” he said.

But the group is well-poised to navigate the current high interest rate environment with its low gearing ratio, ample liquidity and solid financial position, he added.

Regarding CK Hutchison’s prospects, Victor Li said “the group will maintain a prudent approach to managing our businesses this year, with a strong focus on cash flow and tight management of capital expenditures and new investments”.

Hong Kong home prices won’t rebound despite property curbs withdrawal: analysts

Late last month, Financial Secretary Paul Chan Mo-po scrapped all cooling measures restricting property transactions as he unveiled a budget aimed at restoring the city’s flagging fiscal health.

CK Asset declared a final dividend of HK$1.62 per share. Together with the interim dividend of HK$0.43 per share, the total payout for the year stood at HK$2.05, against HK$2.28 in 2022.

CK Hutchison declared a final dividend of HK$1.775 per share. Together with the interim dividend of HK$0.756 per share, the full year dividend totalled HK$2.531, against HK$2.926 in 2022.