Victory in bitter family feud for control of Great Eagle, one of Hong Kong’s richest property empires, is bittersweet for chairman Lo Ka-shui as global recession looms
- The trade war between the US and China has dampened sentiment, putting pressure on Great Eagle’s international expansion plans, Lo says
- Court recently ruled against Lo’s mother, Lo To Lee-kwan, in her bid to stop her son gaining full control of the family business
For Lo Ka-shui, his tentative victory in a high-profile family feud over a HK$24 billion (US$3 billion) property inheritance has proved to be something of a mixed blessing.
Having seen off an attempt by his mother to win back control of Great Eagle Holdings, one of Hong Kong’s wealthiest property dynasties, he faces the daunting prospect of trying to keep the company’s international hotel empire growing.
The protracted trade war between the world’s two largest economies has dampened sentiment around the globe enough for Great Eagle to slow its international expansion plans.
“Our hotels businesses across the world have shown signs of softening this year, after continuous growth in the past few years,” said Lo, the company’s chairman, in an interview with South China Morning Post.
“The trade war does not only affect the US and China. The negative impact is taking a toll on the economies across the world. I am worried about a global [economic] correction.
“China is seeing its economy slowing. Government debt sold by countries like Germany are seeing negative yields, and Japan is also slowing down. Those are the signs.”
China’s gross domestic product grew at 6.2 per cent in the quarter that ended in June, the slowest quarterly growth rate since 1992, according to government figures released last week.
