Prospects Not So Bright for Hong Kong Jewelry Mogul’s Successors
In an interview with Nikkei Asian Review, Simon Lee commented on Cheng Yu-tung’s successors saying that “his eldest son Henry Cheng Kar-shun is just incomparable with his father when it comes to political calculation, and it gives the impression that the next generation of
When the powerful and wealthy flocked to the Hong Kong Funeral Home on 12 and 13 October 2016 to pay respect to Cheng Yu-tung, who had died aged 91, they were marking the loss of the first of a generation of rags-to-riches businessmen whose acumen and diplomatic savviness is almost unrivalled by their successors.
As the founder of Chow Tai Fook Jewellery, the world’s largest jeweler by market capitalisation with the exception of Tiffany & Co., Cheng earned a reputation for tact in forging ties with heavyweights in Hong Kong and beyond.
The tycoon was also praised for his insight into succession. While most of his ageing peers retained a firm grip on their businesses, Cheng decided that he would let his eldest son Henry Cheng Kar-shun try his hand as managing director at New World Development from 1989. He officially handed control to his son months before he suffered a stroke in 2012 and withdrew from public appearance.
Nonetheless, it is far from a bright new world for Cheng’s successors, who face growing skepticism over their ability to navigate the rising economic and political complexities in Hong Kong and mainland China.
Commenting on Cheng’s successor, Simon Lee, Assistant Dean (Undergraduate Studies) and Senior Lecturer of School of Accountancy at The Chinese University of Hong Kong Business School said in an interview with Nikkei Asian Review: “Henry is just incomparable with his father when it comes to political calculation. He is too shaky in his bets … it gives the impression that the next generation of leadership is still finding its way.”
In 2015, Henry Cheng’s oldest son, Adrian Cheng Chi-kong, took the job of executive vice-chairman at New World Development. The apparent heir hopes to carve a niche with his fledging K11 art malls, which combine artistic exhibits with retail space.
Adrian’s younger brother Brian Cheng Chi-ming oversees the family’s listed infrastructure arm NWS Holding, while his sister Sonia Cheng Chi-man is tasked with growing the hotel business. She led an US$800 million deal in 2011 to take over U.S.-based Rosewood Hotels, which owns 19 properties, including the Carlyle in New York.
“The younger Chengs have tried to prove themselves, but whether they are able to make epoch-making decisions like their grandfather remains to be seen,” said Lee. “K11 is far from mainstream … and Rosewood hardly competes with major global hotel chains.”… Read More (PDF)
Source: Nikkei Asian Review
Date published: 16 October, 2016
Photo: SCMP