HONG KONG: Hong Kong billionaire Michael Kadoorie has approached investors to raise at least US$50 million (HK$389 million) to fund efforts to boost the city’s image, according to people familiar with the matter.
The chairman of CLP Holdings Ltd, the city’s top electricity provider, has in recent months pitched several high-profile business leaders on a project that aims to lift the city’s tourism sector, said the people, asking not to be identified discussing private conversations. Kadoorie has said he would commit $5 million, one person added.
He has tapped tycoons including Peter Lee of Henderson Land Development Co. and Raymond Kwok of Sun Hung Kai Properties Ltd, one of the people said. Alibaba Group Holding Ltd. chairman Joseph Tsai was also asked to chip in, another person said.
"I’ve met with the Kadoorie family to hear the plan. It’s early days, we are considering it,” said Oliver Weisberg, chief executive officer of Blue Pool Capital, which is Tsai’s family office.
"Hong Kong is a great place to do business.”
The Kadoorie family declined to comment through a CLP spokeswoman. Sun Hung Kai said it supports any measures that benefit Hong Kong, adding it’s still reviewing this proposal and hasn’t made a decision yet. Henderson didn’t immediately respond to a request for comment.
Chief Executive John Lee last year implored the city’s business sector to step up efforts to bolster growth, reminding executives they are "not bystanders” in the city’s future after meeting with Xia Baolong, Beijing’s top official overseeing Hong Kong and Macao affairs.
Kadoorie, who met with Xia in 2023, later said "Beijing is looking for us to stand on our own feet,” in an interview with the South China Morning Post.
"They will do everything they can to help us and support us. But they also expect us - all of us - to do our share,” he added.
It’s unclear exactly how much money has been raised, or how it will be managed and spent. The project could include buying advertisements to boost Hong Kong’s appeal, two people said. Another person said the efforts could start in spring.
Lee’s office said in an emailed response that the government is "committed to leading and uniting all sectors of the community and the market to contribute to the future development of the country and Hong Kong.” It didn’t comment on any specific interactions it had with Kadoorie or other business leaders.
The city’s reputation as an open and reliable business centre has been shaken by mass street protests in 2019 and a Beijing-ordered national security law that has been used to target pro-democracy lawmakers and journalists. Covid curbs that shut the city’s borders for years also worsened an exodus of talent.
Authorities paid a public relations firm $5.7 million to help the city "reconnect with global audiences” after the unrest. Consulum - which has also worked for Saudi Arabia - concluded the protests hurt Hong Kong’s image as a "stable” and "free” city, but highlighted "exciting” and "innovative” as characteristics the Asian metropolis could still leverage.
Tourism in Hong Kong has yet to recover to its pre-pandemic peak, while bars and shopping malls have been left empty on major holidays as a record number of residents seek bargains across the border.
Official efforts to reverse the trend have struggled: Taylor Swift skipped the hub on her Eras Tour and performed in rival Singapore instead. A government-sponsored soccer game aimed at capitalising on "Messi mania” backfired after the Argentinian footballer stayed on the bench disappointing fans.
Lee sacked his tourism chief in December, saying he needed ministers who are "able to deliver what I have in mind.” Hong Kong is set to this year open a 50,000-seat stadium that will initially host the Hong Kong Sevens rugby tournament, as well as Coldplay.
Kadoorie is ranked the ninth richest person in Hong Kong with a net worth of $10.2 billion, according to the Bloomberg Billionaires Index. The family is a major shareholder of CLP Holdings, which is the largest foreign investor in mainland China’s energy sector, and holds stakes in companies including Hongkong & Shanghai Hotels, which runs the Peninsula Hotels chain and owns properties in Shanghai and Beijing. - Bloomberg
