Property And Jewelry Tycoon Henry Cheng Puts Succession Plans Under Spotlight

This story is part of Forbes’ coverage of Hong Kong’s Richest 2024. See the full list here.

Hong Kong’s third-richest person Henry Cheng threw succession plans into question when he said in November that he might tap an outsider to lead his business empire, which includes property giant New World Development and Chow Tai Fook Jewellery Group.

Until this unexpected disclosure, his eldest son Adrian, executive vice chairman and CEO of New World, was tipped to take over from Cheng, who himself succeeded his late father, Cheng Yu-tung, over a decade ago. Shares of New World have tumbled 60% in the past 12 months, pulled down by China’s property crisis and a lackluster market at home.

In a move to bolster the debt-laden company, Cheng’s family office bought out its infrastructure subsidiary for HK$26.8 billion ($3.4 billion). The outlook for Chow Tai Fook Jewellery, where Cheng’s daughter Sonia is vice chairman, is also challenging with slowing consumption in China, its major market. (Sonia additionally oversees the family’s Rosewood Hotels & Resorts luxury chain.)

Cheng’s net worth, shared with his family, has fallen by nearly a fourth to $22.1 billion since last year.