Where have Hong Kong’s “four major families” gone?

The "Four Big Families of Hong Kong" refers to the four wealthy families that have great influence in Hong Kong, including Li Ka-shing, Kwok Desheng, Lee Shau Kee and Zheng Yutong, who made their fortune mainly in real estate.

Li Ka-shing family

The eldest son Li Zeju and his wife Wang Liqiao. In 1996, Li Zeju's eldest daughter Li Yanning was born, and his second daughter was born in June 2000. On August 5, 2004, Li Zeju’s third daughter was born. In 2006, Li Zeju’s son was born, becoming Li Ka-shing’s first male grandson.

Li Ka-shing’s youngest son, Li Zekai, is unmarried. In 2009, Li Zekai and actress Liang Luoshi secretly dated for a year and a half. The two confirmed their relationship and gave birth to a 7-pound baby boy to Li Zekai in Toronto at the end of April 2009. Li Ka-shing personally named the son "Changzhi". On July 14, 2010, Liang Luoshi gave birth to male twins in San Francisco, USA at the end of June.

Subsidiary companies

Cheung Kong Holdings

Cheung Kong Holdings is the flagship of the Yangtze River Group. Cheung Kong Group is based in Hong Kong, and its businesses include property development and investment, real estate agency and management, ports and related services, telecommunications, hotels, retail and manufacturing, energy, infrastructure, finance and investment, e-commerce, building materials, media and life technology, etc. The members of the group in Hong Kong include four listed companies that are also constituent stocks of the Hang Seng Index: Cheung Kong 1997 'Cheung Hutchison Group' restructuring structure before and after, Hutchison Whampoa Limited, Cheung Kong Infrastructure Holdings Limited and Hong Kong Electric Group Limited; in Hong Kong Hutchison Telecommunications International Limited, Hutchison Continental Limited and TOM Group Limited, which are listed on the Main Board of the Stock Exchange; and CK Life Technologies Group Limited and TOM Online Limited, which are listed on the Growth Enterprise Market. As of February 15, 2006, the combined market value of Cheung Kong Group's companies listed in Hong Kong was HK$706 billion, accounting for approximately 8% of the total market value of the Hong Kong stock market. Cheung Kong Group operates in 54 countries around the world and employs approximately 220,000 people. In September 2007, Cheung Kong Holdings' total market value was HK$805 billion, with operations in 55 countries around the world and employing approximately 250,000 employees.

Hutchison Whampoa

Hutchison Whampoa Limited is a large multinational company with operations all over the world. It has always been determined to innovate and has the courage to adopt new technologies to operate diversified businesses. Hutchison Whampoa Limited includes many companies around the world. The market's largest retail chain group, property development and infrastructure businesses, and the most technologically advanced telecommunications services. Hutchison Whampoa operates five core businesses in 54 countries around the world, employing more than 200,000 people. The core businesses include ports and related services, telecommunications, real estate and hotels, retail and manufacturing, energy and infrastructure. Hutchison Whampoa is one of the Fortune Global 500 companies.

Cheung Kong Infrastructure

It is a comprehensive infrastructure company based in Hong Kong, focusing on the development, investment and operation of Hong Kong, the Mainland, Australia, the United Kingdom, Canada, and the Philippines, and Cheung Kong Infrastructure Group Co., Ltd. Corporate to global infrastructure business. Cheung Kong Infrastructure is one of China's largest infrastructure investors. Its major subsidiaries and associated companies include Green Island Yingni, Hong Kong's only integrated cement products manufacturer; and Hong Kong Electric, one of Hong Kong's two power supply and transmission companies.

Electric Energy Industry

Hong Kong Electric International Limited includes Hong Kong Electric Company Limited (HK Electric), Hong Kong Electric International Company Limited (HK Electric International), and Hong Kong Electric Association Engineering Company Limited ( Hong Kong Electric Co., Ltd.) and certain subsidiaries. Established in 1889, HK Electric is the main operating company of the HK Electric Group and is responsible for power generation, transmission and distribution to Hong Kong Island and Lamma Island. Established in 1997, HK Electric International is the international investment company of HK Electric Group. It cooperates with Cheung Kong Infrastructure Group Co., Ltd. to operate a number of power-related businesses outside Hong Kong.

Family Property Arrangement

On May 25, 2012, Li Ka-shing announced the separate family arrangement for the first time. After meeting with the media after the shareholders’ meeting, he talked about asset allocation for the first time and said that he would 40 Yangtze River (00001 -HK) and Hutchison Whampoa (00013-HK) shares and 22 listed companies, with a market value of more than HK$850 billion and listed assets of more than HK$290 billion, all belong to the eldest son Li Zeju, who will manage the CK Hutchison Group in the future.

The second son, Li Zekai, will receive financial support from Li Ka-shing for his business.

Li Ka-shing controls his assets through complex trusts. The ultimate controlling party is the Li Ka-shing Family Trust (Li Ka-Shing Unity Holdings Limited), and this trust is owned by Li Ka-shing, his eldest son Li Zeju, The second son, Li Zekai, each holds a 1/3 interest. As a result, in this split, 1/3 of the interests in the family trust held by Li Zeju were transferred to Li Zeju. After completion, Li Zeju's shareholding will increase to 2/3, and the remaining 1/3 will continue to be held by Li Ka-shing, and Li Zekai will completely withdraw. On July 29, 2012, Li Ka-shing transferred 1/3 of the family trust rights to his eldest son Li Zeju.

Li Zekai owns equity interests in three Hong Kong listed companies: PCCW, Hong Kong Telecommunications Trust, and Yingda Properties. Calculated based on the market value of the shares he holds, the listed company accounts owned by Li Zekai are worth approximately HK$13.648 billion. In addition, he also has private investments, including the acquisition of AIG's Asian asset management business for US$500 million in 2009, and currently manages approximately US$67 billion in assets.

Asset selling

On August 12, 2014, Oceanwide Holdings announced that it planned to spend nearly 4 billion Hong Kong dollars (approximately 3.176 billion yuan) to acquire Li Ka-shing, the richest man in Hong Kong. Two wholly-owned subsidiaries of Hutchison Whampoa (hereinafter referred to as: Hutchison Whampoa) hold more than 70% of the equity of Hutchison Port.

According to statistics, in the past year, Li Ka-shing's cumulative cash withdrawal amount has exceeded 80 billion yuan by selling off his assets. Among them, Changyuan Group, the only A-share listed company controlled by Li Ka-shing, also contributed 2.256 billion yuan. It is reported that Li Ka-shing’s Cheung Hutchison Investment invested RMB 24 million in Changyuan Group in 1995, and the return on investment exceeded 100 times after 20 years.

According to incomplete statistics from the media, in the past year, Li Ka-shing and his son cashed out about 25 billion Hong Kong dollars (approximately 19.85 billion yuan) by selling real estate.

In addition to real estate assets, Li Ka-shing has also accelerated the sale of other assets. In July 2013, Li Ka-shing made a high-profile announcement that he would sell PARKnSHOP Supermarket. The news caused a stir, but was temporarily shelved; in March 2014, Li Ka-shing turned to Watsons for nearly 25% of his shares and sold them for HK$44 billion (approximately 34.936 billion yuan). RMB) was sold to Singapore sovereign fund Temasek; on March 14, 2014, Hutchison Ports Trust, a listed company of Hutchison Whampoa in Singapore, reduced its 60% stake in Asia Container Terminals and cashed out up to HK$2.472 billion (approximately RMB 1.963 billion). . In addition, on January 22, 2014, Power Industries, also owned by Li Ka-shing, spun off Hong Kong Electric Power Investment (HK Electric) and went public. Power Industries announced the following price limit. Each share syndicated unit of Hong Kong Electric was HK$5.45, raising approximately 24.1 billion Hong Kong dollars (approximately 19.135 billion yuan).

Reorganization of the Century

In January 2015, Li Ka-shing announced the reorganization plan of his two major groups. This plan has two major focuses. One is the merger of Li Ka-shing Cheung Kong and Hutchison Whampoa to form "Cheung Hutchison" will repackage and list all its real estate businesses into the newly established "Changhe Land"; second, the two new companies will be registered in the Cayman Islands and listed in Hong Kong.

Cheung Kong Infrastructure Industries

On the afternoon of September 8, 2015, CK Infrastructure, Cheung Kong Infrastructure (01038.HK) and Electric Power Industry (00006.HK) jointly issued an announcement that they planned to merge the Yangtze River Infrastructure The infrastructure and electric energy industries were merged, and the merged name was "Changjiang Infrastructure Industries". This is the second time this year that he has reorganized his vast corporate empire. The new company will operate utility, waste management and transportation-related assets in China, Europe and Australia.

After the merger, Electric Power Industry will be delisted. With the disappearance of Electric Power Industrial, a company registered in Hong Kong, 87-year-old Li Ka-shing has finally completed the relocation of all company registration locations through a series of large-scale asset transfers since last year.

Disinvestment theory

On September 29, 2015, Li Ka-shing responded to the previously hotly discussed divestment rumors for the first time and issued a three-page statement. In response to the previous article "Don't let Li Ka-shing run away", Li Ka-shing said, "I understand that freedom of speech is a two-edged sword, so a specious article can also trigger heated discussions. This is understandable. The article's literary distortions, The tone is chilling and deeply regrettable."

Li Ka-shing responded, "More than 70% of the companies listed in Hong Kong in the past ten years (including state-owned enterprises) have also chosen to set up companies offshore for the purpose. The purpose is to enable the company to obtain a more modern structure and a more efficient operating model; we have adopted the same approach. The group has reorganized and established a company in the Cayman Islands, while the group’s registration and listing status in Hong Kong remains unchanged.”

Guo Desheng. Family

The founder, Guo Desheng, is deceased.

The four major successors of the Guo Desheng family had internal strife in the family in 2008.

The successors are Kwong Siu-hing (worth NT$64 billion), Kwok Bing-kiang (worth NT$45 billion), and Kwok Bing-lian (worth NT$45 billion).

Sun Hung Kai Properties, its subsidiary, is one of the largest real estate developers in Hong Kong. One, it is also one of the companies with the largest land bank in Hong Kong. The properties developed by the Kwok family include the three tallest buildings in Hong Kong and the tallest skyscraper in Hong Kong. The family also controls several of Hong Kong's major mobile phone operators and the largest bus company.

In 2008, there was civil strife in the Kwok family, and Kwok Desheng’s wife, Kwong Siu-ching, replaced her eldest son Kwok Bing-hsiang as chairman of the board of directors of Sun Hung Kai Properties. On March 29, 2012, Sun Hung Kai Properties co-chairmen Guo Bingjiang and Guo Binglian were arrested on suspicion of corruption.

Sun Hung Kai Properties has property investments in Beijing, Shanghai and the Yangtze River Delta, Guangdong and the Pearl River Delta, Chengdu and nearby cities. In Beijing, Sun Hung Kai Properties owns properties including Beijing APM shopping mall and Xindong'an Plaza office building. It owns 12 properties in cities such as Shanghai, Nanjing and Hangzhou in the Yangtze River Delta, and 10 properties in the Pearl River Delta such as Jiulong Lake and Royal Garden. There are 2 properties in Chengdu.

The author checked Sun Hung Kai Properties’ latest 2014-2015 annual performance report and found that as of the end of June this year, the group’s land bank in the mainland had continued to grow, of which more than 60% were high-end residential or serviced apartments. , the rest are high-quality office buildings, shopping malls and hotels. The investment property portfolio in the Mainland continues to expand, with rental income growing well. Most of the investment properties under construction are located in first-tier cities and are expected to further enhance the growth momentum of rental income after completion.

For the future, Sun Hung Kai Properties remains optimistic, "will maintain a selective business development strategy in the mainland and focus on first-tier cities" and will continue to look for development opportunities in first-tier cities in the mainland.

In fact, when Hong Kong launched a wave of immigration in the late 1980s, Kwok Desheng said: "Except for investing in the mainland, Sun Hung Kai will not consider transferring funds overseas."

Lee Shau Kee Family

The founder, Lee Shau Kee, is 87 years old and worth 160 billion yuan. In June 2015, Lee Shau Kee announced his resignation as chairman and managing director of Henderson Development, and will hand over the reins to his youngest son, Lee Ka-shing, from July 1.

Lee Shau Kee is the founder and chairman of Henderson Land Development Co., Ltd. His family is mainly involved in industries including energy, finance, hotels, real estate, and transportation. Henderson Land Development Co., Ltd. is one of the largest real estate development companies in Hong Kong. Its properties include commercial buildings, residential buildings and hotel groups.

The Lee Shau Kee family also operates the energy industry. He is chairman of the Hong Kong and China Gas Company Limited, Hong Kong's sole supplier of natural gas for domestic use and heating. His eldest son Li Jiajie and his second son Li Jiacheng are both vice chairman of Henderson Land Development and director of Towngas Limited.

According to the author’s statistics, as of now, Henderson Land has 29 locations in 16 cities in China including Beijing, Shanghai, Guangzhou, Changsha, Chengdu, Nanjing, Chongqing, Dalian, Xi’an, Hangzhou, Suzhou and Shenyang. Property real estate. Hong Kong and China Gas, a subsidiary of Henderson Land Development Company, has obtained 212 projects in 25 provinces including Shandong, Anhui, Hebei, Jiangsu, Guangdong, Henan, Jiangsu and Jilin.

Towngas and China Gas are also developing steadily in the emerging environmentally friendly energy business that they are committed to exploring through its wholly-owned subsidiary Yigao Environmental Protection Investment Co., Ltd. and its subsidiaries. It has liquefied gas projects in Jiangsu, Shaanxi, Shandong, Shanxi, Henan and Liaoning.

Henderson's 2015 interim report shows that its business in the mainland has achieved good performance. As of June 30, property development sales revenue in mainland China was HK$2.804 billion, a year-on-year increase of 190%. The pre-tax profits of mainland subsidiaries, associated companies and joint ventures reached HK$339 million, a year-on-year increase of HK$377. Total property rental income in the Mainland was HK$852 million, a year-on-year increase of 21%. Net rental income before tax from subsidiaries, associated companies and joint ventures was HK$656 million, a year-on-year increase of 20%.

These data can allow us to better understand why Henderson Land Development and its subsidiaries are developing new properties and new energy projects in dozens of cities in mainland China.

Zheng Yutong Family

Founder Zheng Yutong, 90 years old, is worth about 100 billion yuan. The successor is his son Zheng Jiachun, and his eldest grandson Zheng Zhigang.

Cheng Yutong is the chairman of Hong Kong New World Development Co., Ltd. (one of the four major real estate developers in Hong Kong), Chow Tai Fook Jewelery and Gold Co., Ltd. and an independent non-executive director of Hang Seng Bank Limited.

Hong Kong New World Development owns three listed companies: New World China Real Estate, NWS and New World Department Store. The family industry covers jewelry, hotels, department stores, logistics, telecommunications, infrastructure construction and financial services.

New World Development Group's property flagship in mainland China - New World China Real Estate Co., Ltd., its property portfolio includes 35 major projects in 20 cities in North China, Northeast China, East China, South China and West China, available for The total floor area for development and investment reaches 27.38 million square meters.

As of the end of last year, New World Department Store operated and managed 43 department stores in 21 cities in mainland China, with a total floor area of ??more than 1.6 million square meters.

In the past few years, property sales performance in mainland China has experienced multiple ups and downs accompanied by a series of administrative control measures. New World Development Real Estate stated that the property market has launched a new round of comprehensively deepening reforms and adheres to the direction of market-oriented reforms. The goal of "de-administration and marketization" has become increasingly clear. The property market in mainland China is expected to continue to stabilize towards a stable pattern. healthy development.

Looking at New World Development Group’s last year’s annual report and this year’s interim report, we see no signs that it wants to shrink its business or divest in the mainland.