London Daily

Focus on the big picture.
Monday, Jun 22, 2026

Social Justice: China presses Hong Kong magnates to share the wealth

Social Justice: China presses Hong Kong magnates to share the wealth

Beijing pushes super-rich to help solve city's chronic housing shortage
Hong Kong's real estate tycoons are belatedly learning the merits of inclusive capitalism -- but only with a prod from Beijing.

When Chinese state media accused Hong Kong's billionaires last month of land hoarding, sowing the seeds of the housing shortage now fueling the biggest protests in the city's history, three of the "big four" developers worth a combined $120 billion took heed.

"In the past, companies only talked about [creating] shareholder value," Adrian Cheng, designated heir to the New World Development property empire told reporters last month. "In the future, I think we need to think more about stakeholder value."

Vowing to donate a sixth of his family's vast agricultural land holdings, or three million square feet valued at HK$3.4 billion ($434 million), Cheng outlined a plan to build homes for the underprivileged.

While calls for democratic inclusion and investigations into police brutality have ranked high on the protest movement's list of demands, authorities were more concerned by the large-scale displays of violence being deployed by protesters acting as if they had nothing to lose.

Best summed up by a line of graffiti painted on a city wall during this long, hot summer of unrest -- "7K for a house like a cell and you really think we out here are afraid of jail?" -- that sentiment is to a large extent true.

With HK$7,000 being the monthly rent one can expect to pay for flat the size of a prison cell, more than half the monthly salary of HK$12,000 for most university graduates.

The extraordinary influx of capital into the former British colony over the last 50 years has created such a yawning wealth gap that not even the city's professional middle classes can today afford to enter the property market.

All of which has started to unnerve Hong Kong's overseers in Beijing.

In a rare move, several Communist Party mouthpieces last month singled out the housing shortage as a key reason for the turmoil that one official has described as the worst crisis since the semi-autonomous enclave was returned to China in 1997.

"To solve the problems of people's livelihood, it's time for property developers to show their utmost goodwill instead of just minding their own business, hoarding lands and earning the last penny," thundered one People's Daily editorial.

Following Adrian Cheng's promise to make farm land available for housing, the Lee family, which controls Henderson Land Development, the property conglomerate valued at more than HK$180 billion, quickly followed suit.

The group announced that it was considering lending about 100,000 square feet of farmland to the government to build " transitional housing", as well as donating land to various charities.

Not to be outdone, a spokesman for the Kwok family's Sun Hung Kai Properties said that while accusations that the family had engaged in land hoarding land were "unfair" and "untrue," the group was nevertheless "keen" to support the government's attempt to increase the supply of affordable housing.

Sun Hung Kai Properties' self-sacrifice nevertheless came with layers of get-out clauses: The land could only used for public housing and could not be put to public tender in future.

The spokesman also stressed that Hong Kong's Lands Resumption Ordinance used to to seize private owners' land should not cover land earmarked for private housing or commercial development purposes, as such land enjoys "private property rights enshrined in the Basic Law," the city's mini-constitution.

"They hope to let the society know that they have done something for alleviating the problems," said Victor Zheng, assistant director of the Hong Kong Institute of Asia-Pacific Studies.

Zheng added that Hong Kong's powerful families had "to a very large extent contributed to the current inherent social problems" after benefiting from decades-long monopolies property and key utilities.

According to the latest Gini coefficient, a widely used index to measure income disparity, Hong Kong had reached an all-time high at 0.539 in 2016, well above passed 0.4 level that the United Nations has defined as "alarming."

Another Hong Kong government study indicated that the richest 10% of households earned on average 44 times more than the poorest 10%.

"It is time to let the property tycoons know that the rising Gini coefficient and worsening social problems may require them to ultimately pay the price," Zheng said. "They need to do more instead of less."

While making outsized donations goes against a cut-throat business philosophy of making biggest gains, many believe Hong Kong's real estate tycoons now have little choice but to accommodate Beijing's wishes.

For major developers who have accumulated extensive mainland portfolios over the years in order to ride the growth wave of the world's second largest economy, the consequences of not satisfying Beijing can be enormous.

In the six months to June 30, mainland China contributed 32.45% of New World Development's revenue, 21.33% for Henderson Land and 7.83% for SHKP. And that proportion is only expected to get bigger with so many projects in the pipeline.

"The donation will be viewed favorably by the central government as such gestures are conducive to easing the social tensions," said Phillip Zhong, an analyst at Morningstar Investment Management. "And the political value is important," he said, adding that in return, they could expect the government to accommodate other, more commercially valuable projects.

Conspicuous by his indifference to Beijing's foot-stamping was Li Ka-shing, Hong Kong's richest man and the founder of the multinational conglomerate CK Hutchison Holdings.

Stressing other donations Li has made toward education and supporting small businesses, a spokeswoman for Li's property vehicle CK Assets Holdings told Nikkei Asian Review that "building houses on farmland is a time-consuming project and it will take long time to benefit the people in need."

After Li sold a string of mainland properties over the past few years, bringing down the mainland contribution to CK Assets' bottom line from 48% in 2016 to just 13% in the first half of this year, Li's decision not to follow Beijing's lead becomes more understandable.

Despite the People's Daily blasting him as "ungrateful" and questioning his patriotism, Li has brushed off the criticism as "ridiculous and illogical". And given the political and policy uncertainties across the border thanks to the trade war with the U.S., Li's sell down of his mainland assets looks even more prescient.

Some are even questioning whether the sudden generosity of property tycoons can actually help ease the housing shortage.

"Developers are likely to select farmland with minimal commercial value, either due to zoning or lack of infrastructure.. and the farmland conversion has generally been a long and difficult process," said Morningstar Investment Management's Zhong. He expects little impact to companies' profitability in the near term.

Still, with the current political winds shifting against them, trying to bargain with Beijing with might not help the tycoons get what they want either.

"What Beijing needs them to do now is to make a sacrifice to balance the interests of society," said Joseph P.H. Fan, professor of finance at the Chinese University of Hong Kong. With the central government now more aware of the outsized influence exerted by Hong Kong's elite, Beijing can be expected to pay much closer attention.

"Those families' interest is deeply intertwined with China and Hong Kong," Fan said "Whether [the successors] like it or not, how willing they are to accommodate Beijing's requests will determine the fate of their families."
Newsletter

Related Articles

0:00
0:00
Close
UK Expands Alcohol Ban Enforcement Using Tagging Technology Ahead of World Cup
UK Invests £50 Million in Critical Minerals Supply Chain Security
UK Appoints Special Envoy on Preventing Sexual Violence in Conflict
UK Introduces Fines for Landlords of Unsafe Rental Properties
Reform UK Leads Opinion Polls as Immigration Debate Reshapes UK Politics
Police Investigate Edinburgh Attacks as Potential Hate Crimes
King Charles to Publish Personal Tax and Royal Household Financial Records
Nottingham University Hospitals Maternity Inquiry Report Set for Publication
Heat-Health Alerts Issued Across London and Southern England Amid Rising Temperatures
UK Economy Shows Pressure From Middle East Conflict Despite Modest Growth
Brexit Anniversary Reignites Debate Over UK Economic and Political Direction
UK Parliament Continues Legislative Work Amid Leadership Transition
Financial Markets Hold Steady After UK Leadership Shake-Up
Andy Burnham Enters Labour Leadership Race With Strong Parliamentary Backing
Keir Starmer Resigns as UK Prime Minister After Two Years in Office
Reform UK MP Lee Anderson to Raise Pension Concerns Over British Coal Staff Superannuation Scheme
UK Parliament to Debate Newborn Screening for Spinal Muscular Atrophy Following Public Petition
Met Office Warns of Water Safety Risks During Heatwave as Temperatures Peak in England
Treasury Increases Mileage Allowance Payments for 2026–27 Tax Year to 55 Pence Per Mile
UK Government Raises Electricity Generator Levy to 55 Percent in New Revenue Measure
House of Lords Moves Financial Services and Markets Bill to Committee Stage Amid Regulatory Scrutiny
Westminster Hall to Debate Petition on Pro-Israel Influence in UK Politics
UK Parliament Prepares for Estimates Days Debates as Backbench Business Schedule Approved
Armed Forces Bill Nears Final Stages in UK House of Commons With Military Justice Reforms
Donald Trump Comments on UK Political Situation, Citing Immigration and Energy Policy Concerns
Andy Burnham By-Election Victory Fuels Speculation Over Potential Labour Leadership Contest
UK Economy Shows Resilience but Faces Headwinds from Middle East Tensions, UK Finance Says
UK Parliament Opens Week of Debates on Net Zero, Security and Armed Forces Reform
Met Office Issues Amber Extreme Heat Warning as Temperatures Expected to Reach 35C Across England and Wales
Prime Minister Keir Starmer Faces Mounting Leadership Pressure After Makerfield By-Election Defeat
London Hotel Wins World’s Best Afternoon Tea Award at International Hospitality Guide La Liste
Court of Appeal Rules in Favour of Competition and Markets Authority in Phenytoin Drug Case
Chichester Waste Site Suspended After Environment Agency Finds Serious Fire and Pollution Risks
UK Appoints Chris Elmore as Special Envoy on Preventing Sexual Violence in Conflict
Environment Agency Fines Yorkshire Firms Nearly £470,000 for Environmental Permit Breaches
British Chambers of Commerce Says Post-Brexit Trade Deals Have Limited Economic Impact
Resident Doctors to Vote on Government Pay Offer in Ongoing NHS Dispute
UK Public Borrowing Reaches £46.3 Billion in Early Fiscal Year, Driven by Debt Interest Costs
UK Government Unveils £100 Million Package to Strengthen Fire and Rescue Response Capacity
Bank of England Holds Interest Rates at 3.75 Percent Despite Easing Inflation
Met Office Extends Amber Heat Warning as Temperatures Forecast to Reach 38C Across Southern England
Prime Minister Keir Starmer Expected to Resign Amid Mounting Labour Party Pressure
UK Government Tightens Procurement Rules to Prioritise National Security and Supply Chain Resilience
National Drought Group Reviews Water Supply Risks After Dry Spring and Ongoing Heatwave
Andy Burnham Faces Leadership Speculation After Weak Local Election Results for Labour
Charity Commission Appoints Interim Managers to Barnabas Aid Amid Financial Investigation
Government Awards £27 Million Leonardo UK Contract to Maintain Military Aircraft Fleet
Environment Agency Suspends Chichester Waste Site Permit Over Fire and Pollution Risks
Border Force Seizes Record Cannabis Shipment in Major UK Criminal Network Disruption
Lloyds Banking Group to Hire 300 Artificial Intelligence Specialists in Digital Expansion Push
×