Li Ka-Shing Dismisses ‘Hard Landing’ Risk for China as Global Growth Slows By Mark Lee and Kelvin Wong
Li Ka-shing, the Hong Kong billionaire who predicted China’s 2008 stock market decline, said the nation’s economy will avoid a hard landing even as global growth slows.
“Every task that’s carried out in China these days has gone through careful consideration,†Li, 83, told reporters in Hong Kong yesterday. “I don’t think there’ll be a hard landing and I’m not concerned.â€
Premier Wen Jiabao’s policies to rein in consumer and property prices have raised concerns they will trigger a slowdown in the economy that’s been the main contributor to global growth.
Li is sitting on cash after his companies
sold $7.1 billion worth of shares in a container-terminal operator and real estate trust this year.
Sitting on Cash
“For the whole group we have a lot of cash,†Li said referring to Cheung Kong, Hong Kong’s second-largest developer by value. “We have many opportunities in front of us.â€
Cheung Kong said yesterday first-half profit almost tripled after contributions from units including Hutchison increased and on gains from the spin off of assets including several properties in Beijing.
Net income climbed to HK$33.3 billion ($4.27 billion) from a restated HK$12.3 billion, the company said in a Hong Kong stock exchange filing yesterday. That missed the median HK$34.9 billion estimate of five analysts surveyed by Bloomberg News.
Net income at Hutchison Whampoa, whose businesses include Husky Energy Inc. (HSE) in Canada and 3 Group in Europe and Australia, jumped to HK$46.3 billion from HK$6.3 billion.
“Globally there’re many places that deserve our concern,†Li said. “Many countries are facing debt problems.â€
Superman Nickname
Li, nicknamed “superman†by the local media for his investing prowess, opened a plastic flower factory after World War II and began investing in Hong Kong real estate in 1967 after riots from China’s Cultural Revolution depressed prices.
Li was ranked the world’s 11th wealthiest by Forbes magazine in March after his net worth increased $5 billion to $26 billion. He forecast in 2007 that China’s stock-market bubble would burst and in 2009 predicted the rally in Hong Kong home prices. The Shanghai Composite Index lost 65 percent in 2008, the most among the world’s 10 biggest stock markets.
Cheung Kong sold the most apartments among the city’s developers in the first half when home prices rose 12 percent. The company in April raised 10.5 billion yuan ($1.6 billion) when it listed Hui Xian Real Estate Investment Trust.
“Property sales were significantly higher than we expected,†said Paul Louie, a Hong Kong-based analyst at Nomura International Hong Kong Ltd. “The results continue to highlight this is a business which is turning out strong earnings and strong cash flows.â€
‘Invest More’
Cheung Kong and its partners have added land holdings in Hong Kong over the past six months that amount to more than 127,000 square meters of gross floor area, the statement said.
“For Cheung Kong’s property businesses, our policies over the past several decades has been to invest more when the market slows down,†Li said. “In today’s market when we see this approach to be appropriate, we’ll do it.â€
http://www.bloomberg.com/news/2011-08-0 ... noffs.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"