New World CEO Huang has task cut out to set Hong Kong developer’s house in order
Company insider has a solid background, but will have to prove to investors that she is the right person for the job, analysts say
The “unexpected” appointment of Echo Huang Shaomei as the new CEO of New World Development (NWD) has raised concerns about whether she is the right person to lead one of Hong Kong’s most leveraged developers out of a tight spot.
Analysts have serious doubts about the situation NWD currently finds itself in, including Huang’s leadership track record, as well as NWD’s corporate governance, noncore divestments and lack of details about the latest management reshuffle.
“The latest change could trigger market concerns about corporate governance at NWD,” said Raymond Cheng, managing director at CGS International Securities Hong Kong. The upheaval could dampen its share price in the near term, he added.
Cheng said that while the leadership change could help NWD further strengthen its mainland China operations, Huang’s lack of track record in Hong Kong’s property business could prove to be a handicap.
Huang needs to demonstrate and convince the investment community that she is the right person to steer the company, he said.
