The Tycoon Left Out in the Cold

Among the magnates who have dominated Hong Kong’s economy for decades, Li Ka-shing is first among equals. Like other tycoons in the city, he’s made a fortune investing in Hong Kong and China real estate. Li’s also branched out to infrastructure, retail, telecommunications, and port businesses worldwide, without forgetting his roots: He founded a university near his hometown in Guangdong province. The billionaire’s role in China’s development earned him the gratitude of former Presidents Jiang Zemin and Hu Jintao. “He is almost sacrosanct and untouchable,” says Audrey Eu, chairman of Hong Kong’s pro-democracy Civic Party.

Under President Xi Jinping, though, even Li—who’s worth $32.6 billion—is vulnerable. China’s state-controlled media put him in the spotlight last month, following reports that companies he controls were selling properties in Shanghai and focusing more overseas. Outlets including the People’s Daily, the newspaper of the Communist Party, questioned Li’s loyalty. On Sept. 29 he responded, with his office issuing a three-page statement that said suggestions he was ditching China were “completely untrue.” Li’s office said his foundation has put HK$14.8 billion ($1.9 billion) into Greater China. His group of companies, led by flagship CK Hutchison Holdings, has opened 1,000 retail stores on the mainland over the past two years and has more than 215 million square feet of projects under development in the country. Moreover, he expressed his respect for Xi’s leadership.