Hong Kong Tycoons Face More Demands From Bond Investors

The tide is turning for Hong Kong’s tycoon families. All of a sudden, the younger generation has to work a lot harder to convince banks and investors that their money is safe, and their pet projects are savvy.

Among them, Adrian Cheng, a Harvard-educated third-generation heir, and Richard Li, “superman” Li Ka-shing’s second son, are the most audacious. At New World Development Co., Cheng has been building out his K11-branded commercial projects, betting that those in Hong Kong and wealthy parts of mainland China appreciate and will pay for artistic and innovative designs. Across the street, Li’s insurance business has been expanding into Southeast Asia, with the belief that consumers will want financial protection once they become middle class. Both endeavors have cost billions of dollars, and have been fueled with debt.