2019-08-26 Bloomberg Businessweek

◼ ECONOMICS Bloomberg Businessweek August 26, 2019

27

HongKong’srichestmanbrokehissilenceon

Aug.16.LiKa-shing,thenonagenarianfounderof

CKHutchisonHoldingsLtd.,thecity’smostimport-

antconglomerate,publishedstatementsinChinese-

andEnglish-languagenewspapersurginga haltto

theunrestwrackingtheterritory.

Liwasthemostprominentofa groupoflocal

propertytycoonsthrowingtheirweightbehind

HongKong ChiefExecutiveCarrieLam’scalls

forcalm.Amongthosealsomakingstatements

werePeterWoo,retiredchairmanofWheelock&

Co.,oneofthecity’slargestlandlords,andHenry

Cheng,headofa property-to-jewelryempirethat’s

buildinga HK$20billion($2.6billion)shopping-

and-entertainmentcomplexatthecity’sairport.

Meanwhile,AdamKwok,executivedirectorofSun

HungKaiPropertiesLtd.,thecity’slargestdevel-

oper,joineda pro-governmentrallyonAug.17.

HongKong’sbillionaireshavegoodreasontodis-

couragethedemonstrators.Thetumultis hitting

● Policiestocurbthepowerofthebigconglomerates

mayhelpappeaseprotesters

Sydney Vancouver Hong Kong

12 16 20

economythatremainedoverwhelminglydependent

onrevenuefrombankingandproperty,anditsport

nowhastocompetewithmainlandrivals.

WhileLamhasspokenoftheeconomicdis-

location,shehasyettocomeupwitha planfor

dealingwithit,andshehasn’tshownmuchempa-

thy.“Theyhavenostakeinthesocietywhichso

manypeoplehavehelpedtobuild,”shesaidat

anAug.9 pressconference,“andthat’swhythey

resorttoallthisviolenceandobstructionscaus-

inghugedamagetotheeconomyandtothedaily

lifeofthepeople.”

OnAug.20,Lamofferedanolivebranchto

many of their businesses as tourists cancel their trips

and stores along protest routes shut their doors. The

economy will contract 0.3% this year, and prop-

erty prices could decline up to 10% in the next 9-12

months, according to a Morgan Stanley forecast.

There’s also the possibility that, once the unrest sub-

sides, the government will take aim at policies that

have helped property developers accumulate huge

fortunes in a city where homeownership is out of

reach for millions of ordinary people.

Besides demanding universal suffrage and other

political reforms, many of the protesters are frus-

trated with Lam’s inability to make the city more

affordable. Addressing those concerns means chal-

lenging the property barons, according to Regina Ip,

a pro-Beijing lawmaker who calls the current crisis

“a turning point for Hong Kong.”

The outsize role of a few family-owned conglom-

erates is a legacy of colonial rule. Under the British,

land couldn’t be bought outright but had to be

... Could Put Billionaires

In a Bind

protesters,pledgingtoimmediatelyengagein

dialogue and investigate complaints against the

police. Protesters rejected her offer because it fell

short of their demands, raising questions about

whether the two sides can reach a compromise

even as they seek to reduce tensions. Analysts

say the next six weeks before the 70th anniver-

sary celebration of the founding of the People’s

Republic of China will be particularly sensitive.

�KariLindberg,ShawnaKwan,andEndaCurran

*CITIES WITH AT LEAST 1 MILLION PEOPLE IN AUSTRALIA, CANADA, IRELAND, NEW ZEALAND, SINGAPORE, U.K., AND THE U.S., AS WELL AS HONG KONG; DATA: DEMOGRAPHIA. HONG KONG GDP DATA: BLOOMBERG ECONOMICS

THE BOTTOM LINE While politics sparked the protests, sky-high

living costs and diminishing career opportunities have fired up

young Hong Kongers.