Hong Kong’s Property Tycoons Drop $2.3 Billion in Wealth
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The six richest property developers in Hong Kong lost a combined $2.3 billion in net worth today as shares in their companies dived after the government imposed a property tax on overseas buyers.
The wealthiest man in Asia, Li Ka-shing, saw his net worth decline $417 million to $26.6 billion from Friday, as shares in Cheung Kong Holdings Ltd. (1) slid 5.2 percent at the noon trading break in Hong Kong, according to the Bloomberg Billionaires Index. Henderson Land Development Co. Chairman Lee Shau-kee dropped $804 million to $22.4 billion. New World Development Co. founder Cheng Yu-tung slid $144 million to $17.5 billion.
The city ordered its third set of property curbs in two months after home prices almost doubled over three years to become the world’s most expensive. Hong Kong Chief Executive Leung Chun-ying, who vowed to halt a housing bubble when he ran for office this year, imposed the first property tax aimed at overseas investors, a 15 percent duty upon purchase, on Oct. 26. A resale tax was raised by about 5 percentage points.
