Li Ka-shing seems to be taking a new view on the mainland market
Things must be getting more challenging in Hong Kong, as the city’s richest man seems to be reconsidering his outlook on the mainland, after selling several properties there. Plus, Fosun’s Guo Guangchang says he can help foreign retailers jump over the Great Wall, and an intriguingly named co-working startup raises $46 million from a major mainland developer. Read on for all the details.
Li Ka-shing Praises China Economy
Li Ka-shing, the richest man in Hong Kong, has cast a vote of confidence in China’s economic outlook, saying he’s upbeat on the nation’s prospects even as growth in the world’s second-largest economy is slowing.
“The long-term outlook for the mainland is good,” the 87-year-old chairman of CK Hutchison Holdings said in an interview with Bloomberg Television. Read more>>
Fosun’s Guo Wants to Help Foreign Companies Enter China
Chinese investment group Fosun is keen to play matchmaker. The idea, according to Chairman Guo Guangchang, is to find promising foreign companies that have outgrown their home turf and help them tap China’s massive consumer market.
A wealthier, aging population will also open up new opportunities for growth, said Guo, who predicts nearly half of the country’s 1.3 billion people will soon be part of the middle class. Excerpts from his recent interview in Tokyo follow. Read more>>
Debt-Ridden Chinese Developers on Tightrope Walk
A strong rebound in the housing market and cheaper funding since last year has not bolstered the finances of mainland Chinese developers across the board. Some are suffering from shrinking margins or too much debt, prompting credit rating agencies to ring the highest number of alarm bells across the sector since 2012.
S&P Global, for instance, took 16 negative rating actions against property developers in the first five months of the year, including 11 downgrades and five negative outlook revisions. Fitch had nine out of 12 actions during the same period, while Moody’s had 18 as of Tuesday, of which two were downgrades and nine negative outlooks. Read more>>
GIC in Talks to Sell Paris Buildings for $756M
Singapore sovereign wealth fund GIC is reported to be in talks to sell two buildings in the central business district of Paris for over $756 million to Societe Generale. The properties are located on Rue d’Astorg and Rue de la Ville-l’Eveque and include the French headquarters for law firm Clifford Chance LLP, a Bloomberg report said. The deal has yet to be finalised. Spokespersons for both GIC, Societe Generale and Clifford Chance have declined to comment on the matter, according to the report. Read more>>
Yintai Land Invests $46M in Mainland Co-Working Startup UrWork
UrWork, a start-up providing co-working space to individuals and small companies, has completed a RMB300 million (US$46 million) pre-B round from Chinese commercial property developer Yintai Land and Zhongrong International Trust Co., Ltd.
The latest financing came about three months after the young start-up’s series A+ round of RMB200 million (US$31 million) from Gopher Asset Management Co., Ltd. and an obscure Chinese investment firm, announced in March. Read more>>
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