Hong Kong leader John Lee shrugs off concerns over slump in property stocks, says security clauses in land sales documents not an issue
- Chief Executive John Lee says government has been selling land as usual since the clauses were put in place in November
- He says representatives of the property sector have indicated they support the legal provisions
Hong Kong’s leader has shrugged off concerns over a slump in property stocks on Monday, dismissing assertions the introduction of national security clauses in land sale agreements had sparked the fall.
The legal provisions warn potential buyers they may be disqualified if they engage in activities that endanger national safety or affect public order.
“This factor is a natural factor which I think has no relevance at all to any decision or by any businesses who are interested in bidding on land,” Lee said at his weekly press briefing, adding they “will basically consider it from their business angle”.
Stressing it was “an obvious thing” that the government should safeguard national security, he added: “I note that the representatives of the property sectors have indicated that they are in support of discharging that responsibility.”
The stock prices of all big property groups in the city, including CK Asset, New World Development, Sun Hung Kai Properties, and Henderson Land, fell on Monday when the new clauses were widely reported in the media.
On Tuesday, Lee said that market sentiment, international development, the world economy and the economic situation in Hong Kong would be taken into consideration by investors and people interested in bidding on land.
The bulk of the Hong Kong administration’s revenue comes from auctioning land to the highest bidders. Land premium and stamp duties account for a third of the exchequer’s total income.
