Faced with uncertain global economic prospects, Changhe (0001) and Cheung Kong (1113) Chairman Li Zeju said in his interim report that the global economic growth is slowing down and the Hong Kong economy is inevitably affected
I believe that The economic cooperation of the Belt and Road Initiative, in line with the development of the Greater Bay Area, is expected to create more business opportunities for Hong Kong. At the same time, the local property market is still stable despite the changes in international political and economic changes and other unpredictable factors. However, changes in the global market and government-related housing policies will continue to dominate the market.
The global slowdown in Hong Kong is hard to escape
Li Zeju said in the interim performance report of Changshi that the Sino-US trade talks have been set, but the terms and conditions have yet to be discussed and confirmed. However, whether the UK can complete the Brexit process in order still has variables. The global political and economic situation is expected to be complicated and changeable. The global economic growth is slowing down and the Hong Kong economy is inevitably affected. It must be handled with caution.
The volatile situation of the foreign trade environment has had an impact on the growth of mainland exports. Even under various pressures, the economy recorded a real growth of 6.3% in the first half of the year. The Mainland continues to promote high-quality economic development, strengthen supply-side structural reforms, and persist in striving for stability. The economic cooperation of the “Belt and Road” and the development of the Greater Bay Area are expected to create more business opportunities for Hong Kong.
Local property market Even in the face of international political and economic changes and other unpredictable factors, the real estate market is still stable, and global market changes and government-related housing policies will continue to dominate the market. The Group’s different property projects are being planned and carried out, which will bring revenue contribution and will continue to seek suitable opportunities to invest in different forms and strengthen the property development portfolio. He said that the cash flow of the Cheung Kong Group was strong and the debt ratio at the interim settlement date was approximately 0.5%. Standard & Poor’s and Moody’s maintain a credit rating of “A/Stable” and “A2 Stable” for the Group.
He reiterated that in the implementation of the basic policy of “Developing the development, not forgetting the development”, in addition to the consistent and prudent investment strategy, the Group’s future development direction will continue to expand its business scope based on the principle of improving the quality of earnings and fixed income and enhancing the value of assets. And geographically, and through the planning and development of property and diversification projects, the Group will bring more revenue contribution. Cautiously optimistic about the future prospects of the group.
Cautiously optimistic about the future
He also said in the long-term and interim results report that the economy is still uncertain around the rest of the year. More loose monetary and fiscal policies may be a buffer, but the risks remain severe. Operational resilience, business diversification, stable cash flow and deep financial foundation continue to be the Group’s main strengths. Therefore, we are cautiously optimistic about the Group’s business prospects.