Hong Kong’s ‘Superman’ Li Ka-shing makes a comeback to investing in China as Cheung Kong sets up US$360 million Jilin power plant venture
- CKI has signed an agreement to set up a venture with Shenzhen-listed Jilin Power, a unit of State Power Investment Corporation, CKI said in a statement
- The Hong Kong company will own 40 per cent of a 2.5 billion yuan (US$360 million) integrated energy project in north-eastern China’s Jilin province, which will supply electricity, heating and cooling to Tonghua city
Li Ka-shing’s Cheung Kong Infrastructure (CKI) has struck its first significant non-cement investment in mainland China in over a decade, in a rare move by the tycoon – known affectionately as Hong Kong’s ‘Superman’ for his deal making prowess – who in recent years was forced to rebut accusations his family was bailing out from the motherland.
CKI, now chaired by Li’s eldest son Victor Li Tzar-kuoi, has signed an agreement to set up a venture with Shenzhen-listed Jilin Power, a unit of State Power Investment Corporation, CKI said in a statement.
The Hong Kong company will own 40 per cent of a 2.5 billion yuan (US$360 million) integrated energy project in north-eastern China’s Jilin province, which will supply electricity, heating and cooling solutions in a “smart” energy project in Tonghua city.
“CKI … is one of the largest investors on the mainland among many Hong Kong companies,” said CKI group managing director Kam Hing-lam in a statement on Tuesday. “Through this heat-and-power cogeneration infrastructure project, we will once again be helping the nation with the development of a key industry. The Cheung Kong group of companies will continue to seek investment opportunities in China, and promote the nation’s economic development according to state policies.”
The project’s 1.5 billion yuan phase-one development is expected to be completed in 18 months, Jilin Power said in a separate statement. The pair will also study feasibility of replacing coal with cleaner-burning natural gas. The venture would be the second between CKI and Jilin since a heat and power project in 1997.