End of an era: Hong Kong steps down as the face of Chinese capitalism

Peter Guy says the exit of a generation of major business figures in Hong Kong – its original property tycoons – coincides with the arrival of China’s model of state capitalism on the global stage. The archetypal Hong Kong tycoon may never return

Reading Time:3 minutes

Li Ka-shing leaves his home in Deep Water Bay. The tycoon officially retired last year and relinquished managerial control of CK Hutchison, a conglomerate that had its roots in plastic flowers 50 years ago. Photo: Edward Wong

Published: 2:30pm, 9 Jan 2019Updated: 3:29pm, 9 Jan 2019

Sooner or later, everybody’s kingdom must end. And Hong Kong witnessed that in 2018 with the passing of a generation of major business and cultural figures. At their peak, they made Hong Kong the centre of Chinese capitalism – until mainland China emerged. Their passing and what they’ve left behind will determine Hong Kong’s future.

The passing of Walter Kwok Ping-sheung, former chairman of Sun Hung Kai Properties, marked the end of an era for Hong Kong’s original property tycoons. It started with Cheng Yu-tung, who founded New World Development in 1970, and died in 2016 as Hong Kong’s third-richest tycoon. And last year, Li Ka-shing officially retired and relinquished managerial control of CK Hutchison, a conglomerate that had its roots in plastic flowers 50 years ago.

This generation of tycoons practised predatory capitalism over communitarian capitalism, and it is evident in the city’s distorted property market, where the government allows developers to sell private flats the size of parking spaces. The property tycoon class has evolved into a threat to the city’s stability.

The government is only becoming aware that the consequences of laissez-faire policies mean that property is not treated as a strategic public resource for social and economic development, but raw material for private profit.

But, that generation was also represented by international media and cultural entrepreneurs. Louis Cha Leung-yung, aka Jin Yong, the world’s most popular Chinese writer, was widely regarded as the most influential Chinese martial arts novelist of the 20th century.