Hong Kong developers’ China edge has limits

Swire Properties

05/09/2022 02:41

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, Sept 5 (Reuters Breakingviews) - The Asian hub’s
tycoons including New World’s Adrian Cheng are eyeing prospects
in the People’s Republic as rivals struggle. Conservative
balance sheets will help. Yet that prudence also damps total
returns to levels that stronger mainland peers have consistently
beaten.      
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    China’s property slump has reached its bottom, according to
Adrian Cheng, chief executive of New World Development, in an
interview for the Financial Times on Aug. 28. 
    Cheng said he expected to invest 10 billion yuan ($1.5
billion) buying land in China over the next year.
    In August, Hong Kong developer Swire Properties said half
its planned HK$100 billion ($12.7 billion) investment over the
next 10 years was earmarked for the mainland.

 (Editing by Robyn Mak and Thomas Shum)
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