Property prices swell Hong Kong’s biggest fortunes

Property prices swell Hong Kong’s biggest fortunes

The real-estate boom in Hong Kong has boosted the fortunes of some of its wealthiest tycoons, according to the latest “rich list” released by Forbes magazine.

The property index on the Hong Kong Stock Exchange gained 38% last year against 20% for the Hang Seng Index

Forbes said that with real estate being among the territory’s favourite pursuits, nearly two-thirds of the list’s 50 members expanded much of their wealth because of property investment or development.

The top three on this year’s list are all involved in property and enjoyed last year’s 38% run-up in the property index on the Hong Kong Stock Exchange.

Perennial chart-topper Li Ka-shing accumulated the largest increase in wealth, US$8 billion, bringing his net worth to $30 billion. Besides property, Li’s diversified business empire also includes the British natural gas supplier Wales & West Utilities, which has 25% of the British market. His private technology investment company continues to buy assets in social media, including the TV platform Stevie.

Lee Shau Kee, ranked second added $3 billion to his wealth to reach $20 billion. The 84-year-old chairman of the developer Henderson Land bought shares in his own company last year, increasing his stake by 6.8 percentage points to 62.6%, and watched the stock price climb more than 40%.

Third was the Kwok family enjoyed a near $4-billion rise in wealth to $19.2 billion. Shares in the family’s flagship Sun Hung Kai Properties rose 28% last year on the bright real estate outlook.

One of the biggest jumps came in the wealth of Peter Woo, whose net worth more than doubled. He was seventh on the list, as rental offices at his landmark Hong Kong properties kept busy. Shoppers from the mainland and overseas also flocked to his signature retail malls, Harbour City in Tsim Sha Tsui and Times Square in Causeway Bay. That lifted the share price of his Hong Kong-listed flagship Wharf Holdings by 77% in 2012, giving his wealth a boost from $3.4 billion a year ago to $8 billion.

Li Ka-shing saw his net worth rise by $8 billion or 36% last year

Other gainers on the back of positive property trends included Fong Yun Wah (21), who saw his wealth more than double to $2.5 billion — the list’s biggest percentage gainer — and hotel magnate Law Kar Po (18), who shot up 18 places as his fortune rose to $2.6 billion.

Developers weren’t the only ones getting richer. The overall Hong Kong index increased 23% as spending from mainland visitors helped retailers and casino companies. Simon and Eleanor Kwok (33) of the cosmetics chain Sa Sa saw their wealth climb from $1.09 billion to $1.55 billion. Gaming tycoon Lui Che Woo (5) more than doubled his net worth from $4.6 billion to $9.5 billion.

Six newcomers made the list including developer Edwin Leong (No. 25, $2 billion), and Lee Man Tat and family (No. 41, $1.1 billion), of the 125-year-old sauce maker Lee Kum Kee. There are also four returnees, including Jim Thompson, the chairman of the global logistics company, Crown Worldwide.

The latest Forbes list has been expanded to at least 50 members from 40 in past years. Testifying to how great a year it was in Hong Kong, all of the 50 are US dollar billionaires or represent billionaire families. Last year, only 37 of the 40 managed to reach that distinction.

(The list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, analysts, private databases and other sources. Net worth figures are based on stock prices and exchange rates as of the close of markets on Dec 31, 2012. Private companies are valued by using financial ratios and other comparisons with similar publicly traded companies. Many of the fortunes here are shared among members of extended families and can’t be attributed entirely to the person listed.)

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