The "Succession Battle" in Hong Kong's Real Estate Industry: Can the Third Generation Take Over?

On March 16, 2018, at 4 PM, the then 90-year-old Li Ka-shing appeared at a press conference in a black suit, slicked-back hair, and solemnly announced his retirement. As the head of the influential "Cheung Kong Group," his decision marked the beginning of the second-generation leadership for the Li family, with the third generation stepping onto the historical stage. Six years later, in September 2024, a major power struggle unfolded within Hong Kong's "Big Four" real estate families.

Adrian Cheng, the eldest grandson of New World Development founder Cheng Yu-tung, unexpectedly resigned as CEO, fully withdrawing from the power center.

The battle for succession among Hong Kong’s real estate giants continues to intensify.

As one of the pillars of Hong Kong’s economy, the major real estate conglomerates contribute significantly to the city’s financial structure, holding a dominant share of the property market. With Hong Kong’s economy at a historic low, these family-run conglomerates face a crucial turning point: Should they continue with second-generation leadership for stability, transition power to the third generation for transformation, or seek external professional managers to steer their vast enterprises? The time for decisive choices has arrived.

How Far Has the Power Transition Progressed Among Hong Kong’s Real Estate Giants?

The Hong Kong real estate industry has long been dominated by the "Big Four" families: the Li Ka-shing family (Cheung Kong Holdings), the Cheng Yu-tung family (New World Development), the Kwok Tak-seng family (Sun Hung Kai Properties), and the Lee Shau-kee family (Henderson Land Development). Outside of these four, the Pao Yue-kong family (Wharf Holdings) and the Robert Kuok family (Kerry Group) also wield considerable influence in the industry. The Pao family controls retail and commercial assets such as Wharf, Wheelock, and Lane Crawford, while the Kuok family, despite its Malaysian roots, has a major presence in Hong Kong through Kerry Group. Another rising force in retail real estate is the Hang Lung Group, founded by self-made entrepreneur Chan Tseng-hsi.

As Hong Kong's richest man, Li Ka-shing's succession plans are closely watched. Currently, the key leadership positions remain in the hands of his second-generation successor, Victor Li, his eldest son, who is now 60 years old and has three daughters and one son. Victor Li serves as Chairman and Managing Director of CK Asset Holdings and CK Hutchison Holdings, with a personal net worth that already reached HK$290 billion in 2012 when the family assets were divided. For now, Victor remains firmly in charge, but his daughter, Scarlett Li, has begun to take part in the family business—though it remains uncertain whether she will rise to power.

New World Development, expected to be among the first to complete its third-generation transition, made a shocking announcement in September 2024 when Adrian Cheng, grandson of founder Cheng Yu-tung, stepped down as CEO. Adrian had joined the company in 2007 as Executive Director, later holding roles such as Joint General Manager, Executive Vice Chairman, and General Manager. After his grandfather’s passing in 2016, second-generation leader Henry Cheng gradually withdrew from operations, leading many to believe the third-generation succession was set. In May 2020, Adrian Cheng officially became Executive Vice Chairman and CEO, while his father, Henry Cheng, remained Chairman. However, with Adrian’s unexpected departure, the Cheng family’s succession battle enters a new phase.

The Kwok family’s succession at Sun Hung Kai Properties has been particularly tumultuous. When second-generation leadership transitioned, the three Kwok brothers engaged in fierce internal conflict, leading to dramatically different fates. The eldest son, Walter Kwok, was ousted by his younger brothers, later founded his own company, suffered from illness, and eventually passed away. The second son, Thomas Kwok, was convicted in a corruption case and served five years in prison, making him ineligible to serve as a company director. The youngest son, Raymond Kwok, ultimately secured control, serving as Chairman and Managing Director. The third-generation succession will likely fall among four candidates: Geoffrey Kwok, Edward Kwok, Adam Kwok, and Christopher Kwok. Geoffrey and Christopher are Raymond’s sons, Adam is Thomas’s son, and Edward is Walter’s eldest son.

The Lee Shau-kee family at Henderson Land Development was among the slowest to prepare for succession. Lee Shau-kee was one of Hong Kong’s last business titans to step down, officially retiring only in 2019. His assets were divided between his two sons, Peter Lee and Martin Lee, who now serve as Co-Chairmen and Managing Directors. The third-generation transition for the Lee family remains distant.

The Kerry Group, controlled by the Kuok family, remains under second-generation leadership. Kuok Khoon-hua serves as Chairman and CEO of Kerry Properties and Kerry Holdings, while his sister, Kuok Hui-kwong, holds the Chairman role at Shangri-La Hotels. Notably, both are children of Kuok’s second wife, Ho Pui-lan.

Among these real estate families, the Pao and Chan families have already transitioned to the third generation. Wu Zhongquan, the grandson of Pao Yue-kong’s second daughter, Pao Pei-yung, and Pao Suwen, the grandson of his eldest daughter, Pao Pei-ching, now manage the family’s interests. Meanwhile, Chan Man-pok, the grandson of Hang Lung Group founder Chan Tseng-hsi, is positioned as a key successor within the company.

What Retail Businesses Do Hong Kong’s Real Estate Giants Own? ?????

Hong Kong’s major real estate families have extensive retail portfolios, especially the Cheng, Kwok, and Pao families, which own flagship commercial projects. Notable brands include New World Development's K11, Sun Hung Kai Properties’ IFC, and Wharf Holdings’ IFS and Times Square.

?? Li Ka-shing’s CK Asset focuses on residential and office spaces but owns 1881 Heritage and Whampoa in Hong Kong, with mainland retail assets like Shanghai Metropolis and Shenzhen Century Place.

?? Cheng Yu-tung’s New World Development leverages the K11 brand, with K11 Musea and K11 Art Mall in Hong Kong, plus projects in Shanghai, Guangzhou, and Shenzhen. ?? Kwok Tak-seng’s Sun Hung Kai Properties dominates with malls like IFC, New Town Plaza, MOKO, and apm in Hong Kong, while its IFC and apm brands expand across Shanghai, Beijing, and Guangzhou.