China Times (www.chinatimes.net.cn) reporter Chen Feng, intern reporter Zhang Mei Beijing report
html After the market on September 28, Li Ka-shing , which is actually controlled by Cheung Sin Group , issued an announcement stating that it plans to sell Hong Kong properties for HK$20.766 billion (including the unsold part of the luxury housing project at No. 21 Bo Lao Road, Banshan), involving 152 residential units, 242 residential parking spaces and 31 motorcycle parking spaces. The Seller (both indirect wholly owned subsidiaries of the Company) and the Buyer entered into a sales agreement on September 28, 2022 (after the end of the trading period), accordingly, the Seller of the Shares has agreed to sell the Sales Shares to the Buyer (i.e. the only issued shares of the Target Company) and the Loan Seller has agreed to transfer the Sales Loan to the Buyer.Previously, the British government issued the most radical tax cut plan since 1972 last Friday, and then the British stock and bond market "severely killed". The exchange rate of the pound against the US dollar once hit its lowest level since 1985. On September 28, the pound pound was still hovering around the low of 1.06. Under the sharp depreciation of
pound, due to Li Ka-shing's heavy holdings in the European market, the "Chengkeng Group" holding pound assets was greatly affected. The stock prices of listed companies under the "Chenghe Group" have been falling continuously, and Li Ka-shing's wealth also fell by 7.959 billion yuan in 3 days.
Hong Kong Anli Asset Management portfolio manager Chen Fengzhu told the reporter of " China Times " that there are two main reasons for the decline of the pound. One is that the United States has raised interest rates sharply, resulting in a strong US dollar; the other is that the UK has introduced tax cuts, and the market is worried about inflation and the local economic situation is worrying.
"Cheung Hokkien Group" stock price is affected by
Cheung Kong Group is a multinational enterprise in Hong Kong. The group's members in Hong Kong include three listed companies that are also constituent Hang Seng Index , namely Cheung Shi Group, Hutchison Huangpu Co., Ltd. and Electric Energy Industry Co., Ltd.; Cheung Kong Infrastructure Group Co., Ltd., Cheung Kong Life Technology Group Co., Ltd. , Hutchison Telecom Hong Kong Holdings Co., Ltd. , Hutchison Hong Kong Holdings Co., Ltd. , Hutchison Hong Kong Co., Ltd. and TOM Group Co., Ltd., etc. These companies are called "Cheung Hokkien Group".
htmlOn September 26, the British pound fell to 1.0349 against the US dollar, hitting a historical low in 37 years, and has fallen by nearly 21% this year.On the same day, data from the Hong Kong Stock Exchange showed that as of the close of September 26, the amount of short selling of in Cheung Kong Group at was as high as HK$216 million, up 267.84% from the previous trading day.
html On September 28, the major stock indexes of Hong Kong stocks fell sharply across the board. As of the close, the Hang Seng Index fell 3.41% to 17,250.88 points, a new low in the past 11 years; the Hang Seng Technology Index fell 3.85% to 3,526.23 points, a new low in the past year. Several stocks of "Changhe Group" also continued to fall on the 28th.Specifically, Cheung Kong Group (01113.HK) closed at HK$46.35, down 6.647%; Cheung Kong Group (00001.HK) closed at HK$43.45, down 3.978%; Cheung Kong Infrastructure Group (01038.HK) closed at HK$39.05, down 5.904%; Electric Energy Industry (00006.HK) closed at HK$38.35, down 5.192%; Cheung Kong Life Technology (00775.HK) closed at HK$0.62, down 6.061%. Among them, Cheung Kong Group and Cheung Kong Group have relatively large cumulative declines.
It is reported that 16% of Cheung Kong's revenue in the first half of the year came from the UK, and nearly one-third of Cheung Kong's revenue came from the UK. According to Bloomberg News on September 27, due to the decline in the pound, the net asset value of the Cheung Kong and the UK may have evaporated by HK$15.7 billion (US$2 billion) since June 30.
Changjiang Industrial Group has also made several moves in recent days. First, according to the latest news, Cheung Kong Industrial Group will sell Hong Kong real estate projects to Sino-Suisse, Singapore
financial institution for HK$21 billion; Second, Cheung Kong Group issued an announcement that the company spent approximately HK$62.9432 million to repurchase 1.2725 million shares on September 27, 2022, with a repurchase price of HK$49 to HK$49.8 per share.Li Ka-shing's value shrank by 16.1 billion yuan this year
Bloomberg Billionaire real-time index shows that Li Ka-shing's value on September 28 was US$27 billion, ranking 43rd in the world. Li Ka-shing's assets have shrunk by 7.6% since the beginning of the year, with losses of US$2.23 billion (over 16.1 billion yuan).
The above index showed on September 25 that Li Ka-shing's net worth was still US$28.1 billion. By September 26, his net worth fell to US$26.7 billion.It is equivalent to the evaporation of 9.935 billion yuan in its wealth in one day. As the pound recovers, based on the US$27 billion worth on the 28th, Li Ka-shing's wealth also fell by 7.959 billion yuan in the three days.
Regarding the reasons for Li Ka-shing's decline in value, Chen Fengzhu analyzed to a reporter from the China Times that the shrinking assets of the "Chenghehe Group" are due to the decline in pound sterling. Because part of the income is pound sterling, it will constitute a loss of exchange , and the impact depends on the proportion of UK business income; secondly, if there are UK property assets, impairment losses may occur; in addition, if the UK economy declines, local business income may also decline.
Why pounds fell sharply
Last week, the new British Chancellor Kwasi Kwarteng announced a tax cut worth 45 billion pounds, including the cancellation of the plan to raise corporate tax to 25%, the cancellation of the maximum tax rate of 45%, and a significant reduction in stamp duty. The move has caused continued concerns among investors. Subsequently, the British stock and bond market "killed three times". The pound exchange rate against the US dollar fell to 1.0327, the lowest level since 1985. On September 28, the pound pound was still hovering around the low of 1.06.
The British "Economist" article on September 26 said that in 2022, the pound depreciated by about 20% against the US dollar, the euro depreciated by 15% against the US dollar, and the depreciation of the yen is close to that of the pound. But over the past week, the pound has plummeted against most currencies, including the US dollar.
Huijin Tianlu senior financial researcher Zhang Jing told the reporter of the China Times that the UK is currently in an unfavorable situation of high inflation, high interest rates and economic recession. The new tax cut plan is difficult to change the weak investment trend since Brexit, so the plan has caused increased pressure on the depreciation of the pound.
Zhang Jing analyzed that overall, the current economic growth of the UK is weak, coupled with the energy crisis and high inflation, the cost of living has risen, and consumer confidence has declined. The British economy is already in a recession.
Editor: Yan Hui Editor-in-chief: Xia Shencha
