Li Ka-shing denies HK withdrawal

Li Ka-shing, Asia's richest man, refuted talks that his Cheung Kong (Holdings) Ltd and Hutchison Whampoa Ltd conglomerates are pulling out from Hong Kong, regarding the "redomiciling scheme" talks as nonsense, the Shanghai-based Oriental Morning Post reported on Sunday.

The tycoon made the remark at a press conference on Saturday. One day earlier, Li's Cheung Kong, a property developer, posted an annual net profit rise of 10 percent in 2013, outperforming market expectations.

The market has been speculating that Li would transfer his business operations and assets from Hong Kong to overseas, especially the United Kingdom, after he considered the sale of Hong Kong supermarket chain ParknShop in July 2013.

After Li's Cheung Kong had sold the Kingswood Ginza shopping mall in Hong Kong's New Territories in October 2013, media reports believed that Li's action signaled the tipping point of the local property market.

Li emphasized that his Cheung Kong and Hutchison Whampoa conglomerates are investing in 52 countries and regions, and will continue their investment in Hong Kong so long as the political and economic conditions in Hong Kong are aligned with the interests of company shareholders.

The world is not as safe as it seems and there are hidden problems both politically and economically, Li was quoted as saying.

The 85-year-old said that Hutchison Whampoa alone generated an operating revenue of HK$400 billion ($51.5 billion) last year, while the proceeds from the spinoff of his electricity assets stood at over HK$40 billion.

Hong Kong Electric Investments Ltd, a spinoff unit from Li's utilities company Power Assets, made its initial public offering (IPO) in Hong Kong on January 29.

It shows the "withdrawal" rumors are just nonsense, Li said.

Li also said the high construction costs and land purchase fees mean home prices in Hong Kong would not drop significantly.

The billionaire plans to split and float A.S. Watson Co, the health and beauty retail arm of the Hutchison Whampoa conglomerate.

Li said on February 28 that he expects the Watson IPO to take place within the year.

Because Watson's headquarters is not in London, it is difficult to be listed there, Li said.

Li said Watson will have a dual listing and one of the listing places will be Hong Kong while he is mulling the second location.