Latest news with #LiKa-shing
Mint
20-05-2025
- Business
- Mint
New World Development's Perpetual Dance With Its Bankers
(Bloomberg Opinion) -- If there's a task you're not obliged to do, but it's expected nonetheless, will there be consequences if you choose not to? This is the question Hong Kong real estate giant New World Development Co. has to deal with. Last Friday, the company did not issue a notice to call back a $345 million perpetual bond, the deadline if it wants to redeem on the first reset date. As a result, the coupon rate will be stepped up to more than 10% from 6.15%, going by the current Treasury yield. New World has about $4.5 billion in perpetuals outstanding, and investors are facing the possibility that they won't get paid anytime soon. In early June, the builder will have the option to defer interest payments on all its perpetuals, noted UBS Group AG. This is not an action of default. When times are good, a company is widely expected to redeem a perpetual on the first reset date, and it will resemble a plain-vanilla bond. But if business conditions get tough, the issuer can choose not to call, or even defer all coupon payments, making it look more like an equity. As a result, auditors tend to recognize these instruments as equity, not debt. Cash-strapped New World has done no wrong here. But perception matters. New World, controlled by the billionaire Cheng family whose business empire spans from jewelry retail to real estate, is in the process of securing mega bank loans to ease its liquidity strain. It has received around HK$20 billion ($2.6 billion) commitments for a HK$63.4 billion refinancing facility, Debtwire reported on May 16. It's seeking an additional loan of HK$15.6 billion, using crown jewel asset Victoria Dockside that houses Hong Kong's luxury mall K11 Musea as collateral. The company's decision not to call its perpetuals 'could potentially impact current refinancing negotiations with the banks,' said UBS in a May 19 note. But will it? There are few precedents in Hong Kong, and the results are mixed. In May 2022, insurer FWD Group Holdings Ltd., owned by 'Superman' Li Ka-shing's younger son, decided not to call a zero-coupon $750 million perpetual note issued by a subsidiary that operates in Southeast Asia, citing corporate reorganization and an impending initial public listing. Richard Li managed to get away with it, receiving a ratings upgrade later in the year and issuing more bonds since. On the other hand, Hong Kong-listed Road King Infrastructure Ltd. has yet to recover from deciding not to distribute its coupon on a 7.75% perpetual last November. With New World, how Chinese banks perceive the no-call might be the key. In March, authorities instructed Industrial and Commercial Bank of China Ltd., China Construction Bank Corp. and Bank of China Ltd. to examine New World's risk exposure and suggested they could replace foreign lenders if the latter cut their credit lines, Octus Intelligence reported. The developer will have a lot of explaining to do. On the mainland, most perpetuals are issued by creditworthy state-owned companies, such as big banks and industrials, which habitually redeem at the first reset date. As a result, it will be a culture shock for mainland bankers to witness New World, which got investment-grade ratings from Japanese firms last October, not to conduct — to them — a routine operation. Whether a perpetual is an equity or debt has been long debated by bond traders. Now it is loan bankers' turn. Who knows? Just like the Li family's FWD, New World might face few consequences. After all, it is a flagship brand from one of Hong Kong's most prominent billionaire families. More From Bloomberg Opinion: This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. A former investment banker, she was a markets reporter for Barron's. She is a CFA charterholder. More stories like this are available on
Business Times
14-05-2025
- Politics
- Business Times
Hong Kong rushes to beef up security law, cementing China's grip
[HONG KONG] Hong Kong fast-tracked new national security rules that further consolidate Beijing's control over the financial hub, with the changes taking effect immediately. The government on Tuesday (May 13) gazetted measures to facilitate the work of Beijing's national security office in the city, including new penalties for failing to comply with investigations. Premises used by the body – known as the Office for Safeguarding National Security (OSNS) – will be designated 'prohibited places,' according to an official statement. The swift roll-out underscores the government's urgency in reinforcing security controls as geopolitical frictions grow. Beijing's reaction to Hong Kong billionaire Li Ka-shing's sale of port assets – including two in Panama – amid the US-China trade war has already prompted some wealthy investors to reassess their exposure to the former British colony. The legislation was made just a day after the authorities disclosed the proposals for it, using a so-called negative vetting process that allows the law to take effect before being reviewed by lawmakers. A spokesperson for the Hong Kong government said the measures fulfil a constitutional duty to counter 'increasingly turbulent global geopolitical' risks, without naming any country. 'The new regulations bring us a step closer to normalising the mainland office as a law enforcement body in Hong Kong with suitable protections under the law,' said Simon Young, a legal professor at the University of Hong Kong. The rules include provisions requiring public servants to assist the OSNS and granting immunity from civil liability to anyone who complies with the office's orders. Disclosing an investigation by the OSNS or failing to follow its directives can result in up to seven years in prison. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Beijing is effectively carving up ''extra-territorial' pockets for China's criminal system within Hong Kong,' according to Victoria Hui, a political science professor at the University of Notre Dame. Hong Kong maintains a separate and independent judicial system from mainland China. Hui said allowing Beijing to handle national security cases in the city helps minimise potential backlash to what she called repression. 'Extraditing political prisoners across the border still looks bad,' she said, referring to Hong Kong's controversial 2019 attempt to pass legislation to allow fugitive transfers to the mainland. Prohibited sites The government marked six sites as prohibited areas, including a hotel in the Causeway Bay neighbourhood that was turned into the OSNS's temporary office and two locations in Kowloon being built into permanent sites for the agency. Entering such places without a permit is punishable by up to two years in prison and a fine. The new rules were gazetted as subsidiary legislation under the Safeguarding National Security Ordinance – a local law passed last year to complement the Beijing-imposed national security law enacted in 2020. That earlier law, introduced after widespread pro-democracy protests triggered by the since-withdrawn 2019 extradition bill, permits the OSNS to assume jurisdiction in cases deemed complex due to the involvement of a foreign country or posing major and imminent threats to national security. Authorities maintain the laws have restored stability and argue they do not affect the general public or normal business operations. BLOOMBERG
Yahoo
14-05-2025
- Business
- Yahoo
Hong Kong Rushes to Beef Up Security Law, Cementing China's Grip
(Bloomberg) -- Hong Kong fast-tracked new national security rules that further consolidate Beijing's control over the financial hub, with the changes taking effect immediately. As Coastline Erodes, One California City Considers 'Retreat Now' A New Central Park Amenity, Tailored to Its East Harlem Neighbors What's Behind the Rise in Serious Injuries on New York City's Streets? Lawsuit Challenges Trump Administration Policy on Migrant Children The government on Tuesday gazetted measures to facilitate the work of Beijing's national security office in the city, including new penalties for failing to comply with investigations. Premises used by the body — known as the Office for Safeguarding National Security — will be designated 'prohibited places,' according to an official statement. The swift roll-out underscores the government's urgency in reinforcing security controls as geopolitical frictions grow. Beijing's reaction to Hong Kong billionaire Li Ka-shing's sale of port assets — including two in Panama — amid the US-China trade war has already prompted some wealthy investors to reassess their exposure to the former British colony. The legislation was made just a day after the authorities disclosed the proposals for it, using a so-called negative vetting process that allows the law to take effect before being reviewed by lawmakers. A spokesperson for the Hong Kong government said the measures fulfill a constitutional duty to counter 'increasingly turbulent global geopolitical' risks, without naming any country. 'The new regulations bring us a step closer to normalizing the mainland office as a law enforcement body in Hong Kong with suitable protections under the law,' said Simon Young, a legal professor at the University of Hong Kong. The rules include provisions requiring public servants to assist the OSNS and granting immunity from civil liability to anyone who complies with the office's orders. Disclosing an investigation by the OSNS or failing to follow its directives can result in up to seven years in prison. Beijing is effectively carving up ''extra-territorial' pockets for China's criminal system within Hong Kong,' according to Victoria Hui, a political science professor at the University of Notre Dame. Hong Kong maintains a separate and independent judicial system from mainland China. Hui said allowing Beijing to handle national security cases in the city helps minimize potential backlash to what she called repression. 'Extraditing political prisoners across the border still looks bad,' she said, referring to Hong Kong's controversial 2019 attempt to pass legislation to allow fugitive transfers to the mainland. Prohibited Sites The government marked six sites as prohibited areas, including a hotel in the Causeway Bay neighborhood that was turned into the OSNS's temporary office and two locations in Kowloon being built into permanent sites for the agency. Entering such places without a permit is punishable by up to two years in prison and a fine. The new rules were gazetted as subsidiary legislation under the Safeguarding National Security Ordinance — a local law passed last year to complement the Beijing-imposed national security law enacted in 2020. That earlier law, introduced after widespread pro-democracy protests triggered by the since-withdrawn 2019 extradition bill, permits the OSNS to assume jurisdiction in cases deemed complex due to the involvement of a foreign country or posing major and imminent threats to national security. Authorities maintain the laws have restored stability and argue they do not affect the general public or normal business operations. (Updates with comments, more details throughout.) Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Trump Has Already Ruined Christmas The Recession Chatter Is Getting Louder. Watch These Metrics Why Obesity Drugs Are Getting Cheaper — and Also More Expensive ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Hong Kong Rushes to Beef Up Security Law, Cementing China's Grip
(Bloomberg) -- Hong Kong fast-tracked new national security rules that further consolidate Beijing's control over the financial hub, with the changes taking effect immediately. As Coastline Erodes, One California City Considers 'Retreat Now' A New Central Park Amenity, Tailored to Its East Harlem Neighbors What's Behind the Rise in Serious Injuries on New York City's Streets? Lawsuit Challenges Trump Administration Policy on Migrant Children The government on Tuesday gazetted measures to facilitate the work of Beijing's national security office in the city, including new penalties for failing to comply with investigations. Premises used by the body — known as the Office for Safeguarding National Security — will be designated 'prohibited places,' according to an official statement. The swift roll-out underscores the government's urgency in reinforcing security controls as geopolitical frictions grow. Beijing's reaction to Hong Kong billionaire Li Ka-shing's sale of port assets — including two in Panama — amid the US-China trade war has already prompted some wealthy investors to reassess their exposure to the former British colony. The legislation was made just a day after the authorities disclosed the proposals for it, using a so-called negative vetting process that allows the law to take effect before being reviewed by lawmakers. A spokesperson for the Hong Kong government said the measures fulfill a constitutional duty to counter 'increasingly turbulent global geopolitical' risks, without naming any country. 'The new regulations bring us a step closer to normalizing the mainland office as a law enforcement body in Hong Kong with suitable protections under the law,' said Simon Young, a legal professor at the University of Hong Kong. The rules include provisions requiring public servants to assist the OSNS and granting immunity from civil liability to anyone who complies with the office's orders. Disclosing an investigation by the OSNS or failing to follow its directives can result in up to seven years in prison. Beijing is effectively carving up ''extra-territorial' pockets for China's criminal system within Hong Kong,' according to Victoria Hui, a political science professor at the University of Notre Dame. Hong Kong maintains a separate and independent judicial system from mainland China. Hui said allowing Beijing to handle national security cases in the city helps minimize potential backlash to what she called repression. 'Extraditing political prisoners across the border still looks bad,' she said, referring to Hong Kong's controversial 2019 attempt to pass legislation to allow fugitive transfers to the mainland. Prohibited Sites The government marked six sites as prohibited areas, including a hotel in the Causeway Bay neighborhood that was turned into the OSNS's temporary office and two locations in Kowloon being built into permanent sites for the agency. Entering such places without a permit is punishable by up to two years in prison and a fine. The new rules were gazetted as subsidiary legislation under the Safeguarding National Security Ordinance — a local law passed last year to complement the Beijing-imposed national security law enacted in 2020. That earlier law, introduced after widespread pro-democracy protests triggered by the since-withdrawn 2019 extradition bill, permits the OSNS to assume jurisdiction in cases deemed complex due to the involvement of a foreign country or posing major and imminent threats to national security. Authorities maintain the laws have restored stability and argue they do not affect the general public or normal business operations. (Updates with comments, more details throughout.) Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Trump Has Already Ruined Christmas The Recession Chatter Is Getting Louder. Watch These Metrics Why Obesity Drugs Are Getting Cheaper — and Also More Expensive ©2025 Bloomberg L.P. Sign in to access your portfolio
Business Times
13-05-2025
- Business
- Business Times
Hong Kong rushes security law changes, cementing Beijing's grip
[HONG KONG] Hong Kong fast-tracked changes to its national security laws that further consolidate Beijing's control over the financial hub, with the new regulations taking effect immediately. The government on Tuesday (May 13) gazetted measures to facilitate the work of Beijing's national security office in the city, such as investigating cases that it exercises jurisdiction over. Premises used by the body – known as the Office for Safeguarding National Security (OSNS) – will be designated 'prohibited places', according to an official statement. The swift rollout underscores the government's urgency in reinforcing security controls as geopolitical frictions grow. Beijing's reaction to Hong Kong billionaire Li Ka-shing's sale of port assets – including two in Panama – amid the US-China trade war has already prompted some wealthy investors to reassess their exposure to the former British colony. The legislation is made under a so-called negative vetting process that allows the law to take effect before being reviewed by lawmakers. A spokesperson for the Hong Kong government said the measures fulfil a constitutional duty to counter 'increasingly turbulent global geopolitical' risks, without naming any country. The rules include provisions requiring public servants to assist the OSNS, granting immunity from civil liability to anyone who complies with the office's orders, and imposing penalties for obstruction. Disclosing an investigation by the OSNS or failing to follow its directives can result in up to seven years in prison. The new rules were gazetted as subsidiary legislation under the Safeguarding National Security Ordinance – a local law passed last year to complement the Beijing-imposed national security law enacted in 2020. That earlier law, introduced after widespread pro-democracy protests, permits the OSNS to assume jurisdiction in cases deemed complex due to the involvement of a foreign country or posing major and imminent threats to national security. Authorities maintain the laws have restored stability and argue they do not affect the general public or normal business operations. BLOOMBERG
