Hong Kong’s Richest Man Sees a Bright Economic Outlook in the Chinese Mainland
The richest man in Hong Kong stated that the economic outlook in the Chinese mainland is bright during the long term which cast a vote of confidence in the economy which witnessed a slow growth in the past quarters. As China continues ti have a trade surplus, the services industry is generating a lot of income and foreign money is flowing in. according to billionaire Li Ka-shing that investors are now focusing on the country’s rising debt levels are missing out on a larger picture.
Hong Kong’s richest man said the Chinese mainland’s economic outlook is bright in the long term, casting a vote of confidence in the economy that has witnessed slower growth in the past quarters. Li said that the long term outlook in the mainland is good as people only see debt in the State owned enterprises and in households but they need to see that China is one of the biggest exporter. These export receipts which is a positive note for China, helped in the trade surplus which went up to 3.7 trillion yuan last year which provided a buffer as a weak yuan spurred capital outflows. Li’s confidence the China’s economy comes even with signs of stabilization due to government stimulus measures.
Li was born in the southeastern city of Chaozhou, which has as much stake in the mainland. His business Chueng Kong Property Holdings accounts about half of its revenue and has dozens of properties in the mainland. Another of his flagship company CK Hutchison is generating 14 percent of hie earnings before interest and taxes from the mainland as he operates around 2,500 Watsons and ParknShop Stores.
During an interview Li also expressed his calls for Britain to vote in favor of staying in the European Union as the world is waiting for the voting outcome this week. If Britain exits, it detrimental for United Kingdom and will have a negative impact in the whole of Europe. As one of the biggest investors in UK, Li has much in stake and his concerns echos those voiced by business and market leaders worldwide as they prepare themselves for a possible fallout.