Collective Wealth Edges Down Amid Hopes Of An Economic Recovery

This story is part of Forbes’ coverage of Hong Kong’s Richest 2023. See the full list here.

Hong Kong’s economy contracted by 3.5% in 2022, as export disruptions and weaker domestic demand took their toll. But the outlook for a recovery turned positive as pandemic curbs were eased late last year and quarantine-free travel resumed in January after a three-year hiatus. While the benchmark Hang Seng index declined 12% since we last measured fortunes a year ago, the collective wealth of Hong Kong’s 50 richest by comparison, dipped only slightly to $324 billion from $328 billion.

The pecking order at the top was unchanged. Li Ka-shing remained at No. 1 with $39 billion, up $3 billion from last year, thanks partly to new information on his assets. While shares of his flagship infrastructure conglomerate CK Hutchison Holdings were down on softer earnings, that was partially offset by a boost from his stake in energy drink maker Celsius Holdings, which saw its shares nearly doubling after PepsiCo announced a $550 million investment in the company.

Real estate tycoon Lee Shau Kee retained the No. 2 spot though his net worth fell 11% to $30.3 billion in a weak property market. Looking to the future, Lee’s Henderson Land is proceeding apace with its plans to construct a $14.6 billion commercial landmark on the Central harborfront. At No. 3 since 2020 is Henry Cheng, son of the late magnate Cheng Yu-tung. His fortune, which he shares with his family, was up $2.5 billion to $28.9 billion, as rising demand for gold jewelry lifted shares of his Chow Tai Fook Jewellery Group by nearly 20%.

The biggest gainer in percentage terms was Jean Salata, whose fortune doubled to $5.9 billion after he sold his Baring Private Equity Asia in October to Stockholm-based private equity giant EQT. Another big gainer was shipping tycoon Helmut Sohmen, whose BW Group benefited from a strong freight market and boosted his estimated net worth by 53% to $5.5 billion.

The sole new face is property developer Hip Shing Hong Group’s co-chairman David Fong, who takes the spot of his late father Fong Yun Wah. Brothers Victor and William Fung, whose supply chain giant Li & Fung’s subsidiary was acquired last August by Danish shipping juggernaut A.P. Moller-Maersk for an enterprise value of $3.6 billion, return to the ranks after a four-year interval.

Nearly half of the listees saw their wealth decrease and none more so than Yeung Kin-man and Lam Wai-ying, the couple behind smartphone glass cover maker Biel Crystal. Their fortune halved to $4.4 billion as the company postponed its IPO amid declining global demand for smartphones. The net worth of college professor Tang Xiao’ou, cofounder of AI firm SenseTime who had debuted last year, plunged almost 60% to $2.5 billion alongside the company’s continued losses.

As the cutoff this year rose slightly to $965 million, two dropped off, including Roy Chi Ping Chung, cofounder of power tools maker Techtronic Industries, which suffered from investor concerns over softer demand from the U.S., its main market.

Full Coverage of Hong Kong’s Richest 2023:

Editing assistance and reporting by Anuradha Raghunathan. Additional reporting by Sonya Angraini, Jonathan Burgos, Jayde Cheung, Gloria Haraito, John Kang, Zinnia Lee, Robert Olsen, Kyunghee Park, Phisanu Phromchanya, Jessica Tan and Yue Wang.

Methodology:

The list was compiled using information from individuals, analysts, government agencies, stock exchanges, databases and other sources. Net worths were based on stock prices and exchange rates as of the close of markets on Feb. 3 and real-time net worths on Forbes.com may reflect different valuations. The ranking lists both individual and family fortunes, including those shared among relatives. Private companies were valued by using financial ratios and other comparisons with similar companies that are publicly traded. The list can also include foreign citizens with business, residential or other ties to the city, or citizens who don’t reside in the city but have significant business or other ties to the city. The editors reserve the right to amend any information or remove any listees in light of new information.

Acknowledgement:

Special thanks to JLL research team, VesselsValue and the other experts who helped us with our reporting and valuations, including Marina Bracciani, JLL; Ray Chan Y. L., Century 21 HK; Hok Yean Chee, HVS; Will Chu, CGS-CIMB Securities (Hong Kong); Robert Hecker, Horwath HTL Asia Pacific; Lucia Leung, Knight Frank; Stephen Lin, CBRE Hong Kong; Rachael Rothman, CBRE; Govinda Singh, Colliers; Daniel Stocker, JLL Switzerland; Daniel Voellm, AP Hospitality Advisors; Martin Wong, Knight Frank; Yan Yuejin, E-House China R&D Institute.