Hong Kong’s wealth lies in the finely manicured hands of a few tycoons who made their fortunes overwhelmingly in the property market, writes Henny Sender. They remain the beneficiaries of a system whereby the local government makes most of its money by selling land development rights at auctions in which only a few have the resources to bid. With supply tightly controlled, prices remain high and both sides prosper.
It was not always like this. Hong Kong is a city of refugees. After mainland China fell to the communists in 1949, the most successful of the refugees who ended up there were initially the industrialists of Shanghai, many of whom had made their fortunes in textiles. Recreating their manufacturing empires in their new home under the British flag, many turned to Standard Chartered for finance, helping that institution to become the colony’s pre-eminent bank.
Over time the more flexible business refugees – such as the families that controlled the Nan Fung and Wing Tai groups – transformed themselves into property developers.