HONG KONG—Hong Kong tycoon Li Ka-shing, the richest man in Asia, announced recently that he plans to merge his two main listed blue-chip companies, Cheung Kong Holdings Limited and Hutchison Whampoa Limited, and to set up two new companies in their place.
The new companies, CKH Holdings and CK Property Holdings, will change their base of incorporation from Hong Kong to the Cayman Islands. Some analysts believe the plan shows that Li has a bearish outlook on Hong Kong’s economy, which has raised concern that there will be more divestment in Hong Kong.
At a press conference in March last year, Li insisted that he would not take divestment action in Hong Kong. Less than one year later, he announced his decision to relocate.
There has been speculation that Li made the decision because of Hong Kong’s political situation. Li announced the plan shortly after the Hong Kong government issued a distorted report on public sentiment and a document that denied Hong Kong people the universal suffrage they have been protesting for.
