Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Hong Kong’s Richest Man Warns Against Brexit as Vote Looms

ElectionOracle / EU_Referendum Jun 21, 2016 - 03:01 PM GMT

By: Bloomberg


As one of the U.K.’s largest investors, Li has much at stake

U.K. accounts for 37 percent of profit at Li’s main company

Hong Kong’s richest man stepped up his calls for Britons to vote in favor of staying in the European Union as the world braces for the outcome of this week’s vote.

"If Brexit happens, it will be detrimental to the U.K. and it will have a negative impact to the whole of Europe," CK Hutchison Holding Ltd. Chairman Li Ka-shing told Bloomberg Television’s Angie Lau in a wide-ranging interview, his first with international media since 2012. "Of course I hope that the U.K. doesn’t leave the EU."

As one of the U.K.’s biggest investors, Li has much at stake in the June 23 referendum and his concerns echo those voiced by business and market leaders worldwide as they prepare for the possible fallout from Britain leaving the 28-nation bloc. Executives at Toyota Motor Corp. to General Electric Co. have warned that future spending in the country could be undermined if voters choose to leave the EU.

Li said three months ago he would scale back investments in the U.K. in the unlikely event that Britain were to vote to exit the EU. In Thursday’s interview, where he also talked up the long-term outlook of China’s economy, the 87-year-old billionaire stressed that his businesses in the U.K. and Europe would continue regardless of the results as polls indicate the outcome is too close to call.

Though various surveys last week indicated the Brexit camp would win, polls from Survation taken June 17-18 for the Mail on Sunday newspaper gave the “Remain” camp a three percentage point lead over those preferring to leave, reversing positions from Survation’s previous survey.

Li has amassed a fortune of $28.6 billion, third largest in Asia after Alibaba Group Holding Ltd.’s Jack Ma and Dalian Wanda Group Co.’s Wang Jianlin on the Bloomberg Billionaires Index. Yet he’s often been atop of the list, ranking as the region’s wealthiest tycoon as recently as three months ago.

Though he’s known by local media as "Superman" for his business acumen, Li has been facing some setbacks lately, most recently in the U.K.

European regulators last month blocked Li, the man behind the Three phone service, from creating the U.K.’s largest wireless carrier after vetoing his plans to buy O2 for as much as $15 billion on concerns it would hinder competition and inflate prices. European authorities are also examining whether to approve a proposed merger of his telecom business in Italy with VimpelCom Ltd.’s Wind Telecomunicazioni.


Days after the O2 decision, which came about six months after minority shareholders rejected a $12.4 billion buyout offer for one of his units in Hong Kong, the tycoon’s eldest son and heir said at CK Hutchison’s annual general meeting that the O2 setback may not be a bad thing in light of the growing possibility of Brexit and that the company would consider its next move after the referendum.

Li missed that shareholder’s meeting -- his first absence in years -- because of a stomach bug. Though the ailment caused Li to lose weight, he said his health is fine.

With the referendum days away, Li’s attention is back on the U.K., where he operates Superdrug and Savers stores, ports, the Three phone service, as well as gas and electricity distribution. His Hong Kong-based flagship CK Hutchison generated 37 percent of its total earnings -- before interest and taxes -- from the country last year.

That means a weaker pound, which is the world’s worst performer among Group of 10 currencies this year, is bad for CK Hutchison’s profits. Every time the pound moves by 1 percent, the company’s recurring earnings would swing 0.5 percent in the same direction, according to Benjamin Lo, an analyst at Nomura Holdings in Hong Kong.

In addition, if Brexit causes the U.K. economy to slow down -- Bank of England Governor Mark Carney has warned it could lead to a recession -- CK Hutchison’s port and retail operations in the country would be particularly vulnerable, Lo said. S&P Global Ratings said on Monday that although a U.K. exit could impact CK Hutchison and some of its affiliates, it’s unlikely to affect their credit ratings.

Regardless of the outcome, the Hong Kong tycoon pointed out that his business will go on.

"It’s not the end of the world if Brexit happens," said Li.

Copyright © 2016 Bloomberg - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Bloomberg Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in