400 Homes Owned by Hong Kong's Richest Family Hit the Market
Questions Arise Over 'Fire Sale' of Properties by Li Ka-shing's CK Hutchison, Owner of Panama Canal Rights
Four hundred residential units owned by the family of Hong Kong's wealthiest individual, Li Ka-shing, have been put on the market at prices far below market value.
According to Chinese local media such as the Daily Economic News on July 31, four hundred homes owned by Hutchison Whampoa Real Estate, a subsidiary of Cheung Kong Group?which is controlled by the Li Ka-shing family?have been listed for sale.
The properties include apartments and villa complexes spread across four locations, including Guangdong Province in southern China and Hong Kong, with prices reportedly starting as low as 400,000 yuan (approximately 77.22 million KRW) per unit. Real estate agents stated that this price is so low that it is comparable to just a down payment on an apartment, which has attracted significant interest from Hong Kong buyers.
Hong Kong's richest tycoon Li Ka-shing. Photo by Bloomberg News
The Daily Economic News analyzed that this kind of 'property sell-off' is a long-standing asset management strategy of the Li Ka-shing family. Previously, Cheung Kong Group sold off hundreds of properties at once during the Hong Kong stock market boom in 2015, securing more than 1 trillion KRW in cash within a month. Additionally, as the Chinese real estate market slumped over the past two to three years, the group offered steep discounts on apartments in both Hong Kong and mainland China.
However, in mainland China, suspicions have been raised regarding the Li Ka-shing family's large-scale sell-off. The background involves the Panama Canal operation rights. Currently, CK Hutchison, owned by the Li Ka-shing family, holds the operating rights to the Panama Canal. These rights were secured through a 50-year long-term contract in 1997, when the Panamanian government entrusted the ports surrounding the canal to private companies.
The United States has viewed this situation with concern. President Donald Trump stated, "China is operating the Panama Canal," and argued that control over the canal should be reclaimed. The U.S. Department of Defense also pointed out in a report that "Chinese companies are controlling the gateways to the Americas' canals." Following this, there have been reports that the Li Ka-shing family is considering selling or restructuring its holdings in Panama port assets.
On the other hand, some analysts suggest that Li Ka-shing, who is renowned as a 'forward-looking investor,' may be liquidating Hong Kong assets in anticipation of a decline in the value of the Hong Kong dollar.
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