Asia's richest tycoons profit from China's rise

Asia's richest tycoons are profiting mightily from China's economic rise, with Hong Kong real estate and ports magnate Li Ka-shing (李嘉誠) once again in the lead, Forbes magazine said yesterday.

Li was among many billionaires who reaped big profits from their ties to the mainland China market, as his fortune rose to an estimated US$22 billion from US$18.8 billion a year before, the magazine said in announcing its annual list of the wealthiest in Hong Kong and Taiwan.

Li, 78, has long been at or near the top of various rich lists compiled by financial magazines and researchers. His empire includes the Hutchison Whampoa Ltd (和記黃埔) and Cheung Kong (長江實業)conglomerates.

Forbes compiles a separate list for mainland tycoons. The most recent version of that list was topped by Wong Kwong-yu (黃光裕), a 37-year-old appliance retailer whose wealth totaled US$2.3 billion.

Hong Kong and Taiwanese businesses are getting richer through investments, operating businesses or simply "feeling the halo effect from proximity to the mainland," Forbes said in a press release.

Several of the tycoons topping the list added billions in wealth through share listings. That included Hong Kong's Lee Shau Kee (李兆基), No. 2 with wealth estimated at US$16.5 billion.

Lee, founder of property firm Henderson Land Development Co (恆基地產), received a windfall from his investment in a Hong Kong initial public offering by Nine Dragons Paper Co (玖龍紙業), a mainland-based container board and recycling company headed by Zhang Yin (張茵), China's wealthiest businesswoman.

Zhang was No. 5 on Forbes' China list, with US$1.5 billion in assets.

Forbes said the combined net worth of the 40 richest Hong Kong and Taiwan citizens rose by US$28 billion from a year earlier to US$154 billion. Twenty-eight added to their fortunes, with only four from last year's list losing wealth, Forbes said.

Third on the list were the three Kwok brothers, Raymond, Thomas and Walter, who run Sun Hung Kai Properties Ltd (新鴻基地產), one of Hong Kong's biggest property owners, and have combined wealth estimated at US$14 billion.

Michael Kadoorie, whose family had extensive business interests in Shanghai before the 1949 Communist revolution, is fourth with a fortune of US$9 billion, with a big stake in Hongkong & Shanghai Hotels and CLP Holdings, a Hong Kong electric utility.

The wealthiest Taiwan-based businessman, according to the list, was Tsai Hong-tu (蔡宏圖), whose US$7.1 billion in assets were mainly inherited from his father Tsai Wan-lin (蔡萬霖), an insurance and real estate mogul.

Taiwan's second wealthiest was Terry Gou (郭台銘), whose Hon Hai Precision Industry Co (鴻海精密), flagship of his computer manufacturing empire, has units making iPods and phones for Apple Inc in China. Gou's wealth was estimated at US$5.5 billion.

Wang Yung-ching (王永慶), founder of Formosa Plastics Group (台塑集團), was Taiwan's third wealthiest with US$4.9 billion worth of assets.