By Mark Lee and Theresa Tang
May 21 (Bloomberg) -- Hong Kong billionaire Li Ka-shing, chairman and founder of the city’s second-largest property developer, warned investors to “be careful” when buying stocks owing to concerns about economic growth.
His comments, made to reporters after the annual shareholder meeting of his flagship real estate company Cheung Kong (Holdings) Ltd., contrast with a March 26 statement that investors with cash should consider buying equities and real estate. The Hang Seng Index surged 22 percent since then.
“Recovery in the stock market usually comes before the economy, but it’s not every time,” said Li, who is known as ‘Superman’ locally because of his investment acumen. “If you ask me if the stock market can go higher, it’s possible. But be careful, the economy still has some problems this year.”
The Hang Seng has climbed 52 percent from a four-month low on March 9 as investors speculated government stimulus efforts worldwide, including a 4 trillion yuan ($586 billion) package in China, will ease the global economic slump.
Signs of a recovery have been mixed. While Centaline Property Agency Ltd.’s home-price index has jumped 13.3 percent this year, the government said on May 15 that the economy shrank 4.3 percent in the first quarter, more than some economists expected. A May 19 report showed that Hong Kong’s jobless rate rose to the highest in three years.
Li was ranked No. 16 on Forbes magazine’s list of the world’s richest people with a fortune of $16.2 billion, the publication said in March. This makes him Asia’s second-richest man, behind India’s Mukesh Ambani, who has $19.5 billion.
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