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112-476: New World Development Company Limited (NWD), is a Hong Kong–based company focused on property , hotels, infrastructure and services and department stores . It was established on 29 May 1970 by Cheng Yu-tung . The company is publicly listed on the Stock Exchange of Hong Kong Limited (SEHK: 17) since 23 November 1972 and is a constituent stock of Hong Kong Hang Seng Index . Over the last four decades,

224-504: A 15 percent fall in the company's share price, and a downgrading of the company's outlook. In December 2014, the jury convicted Thomas Kwok and Rafael Hui of the HK$ 8,500,000 bribery, and Hui was convicted of four more charges relating to misconduct in public office. The jury acquitted Raymond Kwok from all changes. In line with free market principles, the government has largely relied on industry self-regulation , which has been problematic:

336-645: A 40% stake in the aforementioned Kut Cheong Mansion to New World Development for HK$ 1.779 billion in January 2015. In 2010, the Chinese translation of a book, Land and the Ruling Class in Hong Kong , popularized the term 地產霸權 ; 'real estate hegemony' to describe Hong Kong's real estate tycoon families. The combined Chow Tai Fook–New World Development group was one of the families described in

448-599: A 50-50 joint venture with HIP Company Limited, a subsidiary of The Abu Dhabi Investment Authority, to acquire the Grand Hyatt Hong Kong, Renaissance Harbour View, and Hyatt Regency TST with a deal valued at HK$ 18.5 billion, resulted in NWD receiving approximately HK$ 10 billion. NWD then launched its new healthcare brand, Humansa, and acquired FTLife in November and December 2018, respectively. In October 2020,

560-501: A KLUB 11 member and linking to the K Dollar Program account, members can earn K Dollars, which can be used as instant cash at a wide range of participating merchants. A minimum spending amount of 10 K Dollars is required for redemption. The K Dollar conversion rate varies by KLUB 11 tier: The program features over 1,000 merchants throughout Hong Kong, including locations within K11 Art Mall and Victoria Dockside . In March 2024,

672-526: A billionaire businessman from Chongqing ; transport to Hong Kong from Macau aboard a $ 19 million yacht owned by Thomas Lau . Rafael Hui, Chief Secretary appointed by Tsang, also came under investigation by the ICAC , and was convicted in late 2014 along with several principals in the property industry in a landmark corruption case . This event led some to suspect that Tsang intentionally repressed longer-term strategic development policies for fear of upsetting

784-535: A building of the same name ( Manning House  [ zh ] , in Chinese : 萬年大廈 ) in Central. Manning House became one of the rental properties of the jeweller's sister company New World Development 's portfolio in the 1970s. In 1971, Chow Tai Fook Jewellery introduced ornaments made of vitreous enamel . It was credited as a new industry of Hong Kong at that time. In 1989, Chow Tai Fook Jewellery broke

896-500: A feature was introduced allowing members to link their Visa cards to the K11 HK app, enabling automatic earning of K Dollars without the need to queue up at the concierge, upload receipts, or scan the QR codes. This integration is part of a multi-year partnership between New World Development (NWD) and Visa to deepen customer engagement and stimulate local spend. Upon linking their Visa cards to

1008-506: A high-end development in West Kowloon which was introduced in 2007, the developer was still holding 60 of the most luxurious units in the project's two towers more than a decade later, for revenue maximisation in a perpetually rising market. In mid-June 2018, developers had unsold stock of more than 9,000 new flats according to government data, some of which had been held for more than a decade. As property prices continued to rise, and

1120-538: A hotel management unit, Rosewood Hotel Group , that was privately owned by Chow Tai Fook Enterprises. On top of using its own resources, New World Development also partnered with parent company Chow Tai Fook group on a number of redevelopment projects, such as the acquisition of a 90% stake in Kut Cheong Mansion ( 吉祥大廈 ) in North Point in the 2010s. Chow Tai Fook Enterprises, via Sunbig Limited, sold

1232-464: A joint venture with French company Suez Lyonnaise des Eaux as of 1987. The stake of the intermediate parent company of Macao Water was transferred to listed subsidiary New World Infrastructure in 1997. The same French company had attempted to acquire Companhia de Electricidade de Macau (CEM) from Sociedade de Turismo e Diversões de Macau in 1987, by forming a joint venture with a company owned by Cheng Yu-tung [ sic ]. The stake of

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1344-517: A mall founded by New World Development. Property developer in Hong Kong Development in Hong Kong has historically been dominated by a cartel of five families, who now count themselves among the richest in the former colony. The developers share similar cost structures and advantages, and settle competition at land auctions by collusive bidding. Similarly, in residential sales, project metrics are equally predictable because

1456-483: A net of 142 POS during the 2Q of FY2025. *"shop-in-shop"/"counter-in-shop” excluded Chow Tai Fook Jewellery has fallen victim to major crime a number of times. In 1966, diamonds worth HK$ 1.23 million at that time, were stolen during transport from South Africa. In 1974, diamonds worth HK$ 250,000 were stolen from the staff of Chow Tai Fook Jewellery in Manning House, Central, Hong Kong . In 1980 and 1981,

1568-482: A new lease and pay the difference in market value between the two uses in the form of a "land premium". The government therefore had an interest in maintaining high land price to keep taxes low. Land premiums amounted to HK$ 65.5 billion ($ 8.4 billion) in the 2010–2011 financial year, making up 17.4 percent of receipts; stamp duty from property sales made up another 6.5 percent, meaning 24 percent of government income came from property deals. The capital-intensive nature of

1680-598: A percentage of all common areas; in other words, buyers pay for 30–35 percent of uninhabitable floor space. Hong Kong property buyers thus commonly accept that the usable space of a residential unit is only 65–70 percent of its gross floor area - this is known as the Efficiency Ratio. This ratio stood at 93 percent thirty years previously. On April 29, 2013, the Residential Properties (First-hand Sales) Ordinance practice came into effect, banning

1792-474: A product of Chow Tai Fook Jewellery, which became a standard for industry peers in Hong Kong. In 1964, Chow Tai Fook Jewellery acquired a license for purchasing diamonds from De Beers , the monopoly supplier at that time. It was reported that 30% of diamond imports into Hong Kong in the 1970s were purchased by Chow Tai Fook. In 1960s, Chow Tai Fook established another brand ( Chinese : 萬年珠寶公司 ; lit. 'Ten thousand year jewellery company') in

1904-654: A reference". Housing Secretary Eva Cheng said "Having a unified definition to calculate the area of a unit is the basis for the legislation ... But it is ridiculous to have some parts of the price list as references, while the real information is stated already." In op-ed in the South China Morning Post , Alex Lo welcomed the measures and criticised the REDA's arrogance, saying "People who enjoy too much power and privilege rarely know when to stop." Chow Tai Fook Jewellery Group Chow Tai Fook group

2016-527: A residential building at 265–275 Tai Nan Street, Sham Shui Po , Kowloon. The building was also named after Tai Fook ( 大福唐樓 ). The real estate division became the listed company New World Development in 1972; the group, via Chow Tai Fook Enterprises, also made private investments in real estate and hotels. One of the main holding companies of the group, Chow Tai Fook Enterprises Limited, was incorporated on 10 August 1966 in British Hong Kong , while

2128-548: A separate deal, Goshawk Aviation ordered 20 Boeing 737 MAXs . The combined price of the two deals was estimated at US$ 4.5 billion. Brian Cheng, son of Henry Cheng and grandson of Cheng Yu-tung, is the chairman of Goshawk Aviation. On top of New World Development 's investments in hotel properties and hotel management, Chow Tai Fook Enterprises (CTFE) also made direct investments in these areas. In 1990, Chow Tai Fook Enterprises partnered with associate company New World Development to privatize New World Hotels (Holdings) ,

2240-480: A sub-holding listed company of New World Development in the hotel business. Chow Tai Fook Enterprises owned a 36% stake (indirectly, via Beames Holdings) in New World Hotels (Holdings) after the deal, while New World Development owned the remaining 64% indirectly. In July 1997, some of the hotels from the former New World Hotels (Holdings) portfolio were sold by New World Development to CTF Holdings, which

2352-650: A website was launched in July 2011. According to an opinion poll published in August 2011 by the Chinese University of Hong Kong , two-thirds of those interviewed thought developers cared only about making money and nothing about social responsibility. Although Chief Secretary Henry Tang claimed in May 2011 that there was no such thing as "property hegemony" – the alleged dominance of developers over local politics and

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2464-414: A year. Flats are deemed finished one year after the developer obtains an occupation permit, from which time the proposed tax would be levied equivalent to two years of ratable value. Property sales are usually quoted on prices of built property based on "gross floor area". However, there is no uniform definition of this term in sales documents, nor is there any statute governing such measures. According to

2576-402: Is a Hong Kong–based, privately-owned conglomerate with holdings in the jewellery, property development , hotel, department store , transportation, energy, telecommunications , port, casino , and other businesses. Despite the holding companies of the group, namely Chow Tai Fook Capital Limited , Chow Tai Fook (Holding) Limited , Chow Tai Fook Enterprises Limited , etc. being privately owned,

2688-461: Is a constituent of the Hong Kong blue-chip Hang Seng Index . Chow Tai Fook Jewellery Group, as of 13 October 2016, was the world's second-largest jeweller by [total] market capitalization . Chow Tai Fook Jewellery is a jewellery store and gold shop ( Chinese : 珠寶金行 金行 ; 'gold shop') founded by Chow Chi-yuen in 1929 in Guangzhou , China. His son-in-law Cheng Yu-tung took over

2800-453: Is described as a journey that expands imagination beyond mere aesthetics, focusing on the creation of a modern living culture rooted in originality and bespoke craftsmanship. It encourages its staff to think creatively and develop unique ideas that enhance customer experiences. The five core elements are: These elements collectively aim to foster a culture that values human creativity, sustainability, and social responsibility. This position

2912-407: Is one of the Hong Kong companies who have a large landbank . As at 31 December 2014, the group had a landbank of around 9.25 million sq ft, of which around 5.3 million sq ft was residential property . The group had a total of approximately 18.3 million sq ft of attributable agricultural land reserve pending for conversion. The Group's brand personality is defined by “The Artisanal Movement”, which

3024-444: Is the largest real estate company in Hong Kong by market capitalisation. According to 2012 estimates by Barclays Capital, Sun Hung Kai, Cheung Kong and Henderson Land Development together provide an estimated 54 percent of the 20,398 private housing units to be launched in Hong Kong as at 2012. Hong Kong-based consolidated turnover figures and reference periods in parentheses. ('Interim' indicates 6 months' figures) The leaders of

3136-830: Is the parent company of listed companies NWS Holdings ( SEHK :  659 , listed since 1997), New World Department Store China ( SEHK :  825 , listed since 2007) and former listed companies New World Hotels (Holdings) (acquired in 1976, privatized in 1990), and New World China Land (listed in 1999, privatized in 2016). New World Development also owned former listed companies NW China Investment (listed in Ireland, privatized), New World Infrastructure (listed in 1995, privatized as New World TMT ), and Renaissance Hotel Group (listed in 1995, sold in 1997). As of 1986, Chow Tai Fook Enterprises (CTFE) owned 466,927,948 shares in New World Development, or about 43% of

3248-399: Is wholly owned by New World Development. The company also owned former listed company New World Hotels (Holdings) . Rosewood Hotel Group , an hotel management company, is a former subsidiary of NWD group. New World Development and sister listed company Chow Tai Fook Jewellery Group are both majority owned by privately owned Chow Tai Fook (Holding) . New World Development Company Limited

3360-442: The 1997 Asian financial crisis . This policy has been criticised by economist Andy Xie , who believes that land supply should be adjusted according to development needs of the local economy, and not to achieve target prices for the land. He further states that the policy, backed by loose money from the banking sector, has caused the economy to restructure around the government-mandated land price. Hong Kong, which has been ranked by

3472-632: The Grand Hyatt Hong Kong and Renaissance Harbour View, changed ownership from Beames Holdings to New World Development (via Beames Holdings) and Abu Dhabi Investment Authority in a 50–50 split in April 2015. In July 2015, New World China Land , another second-tier listed subsidiary of Chow Tai Fook Enterprises, sold the hotel management unit Rosewood Hotel Group to Chow Tai Fook Enterprises. Rosewood Hotel Group owned three brands: penta, New World, and Rosewood . The pentahotels unit

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3584-567: The Hong Kong stock exchange since 23 November 1972. The initial public offering price was HK$ 2, issuing about 96.75 million of new shares. The shares were initially traded in 3 out of the 4 exchanges of Hong Kong, namely the Hong Kong Stock Exchange , Far East Exchange  [ zh ] and Kam Ngan Stock Exchange , the predecessors of the current Stock Exchange of Hong Kong . As of 2018, New World Development

3696-779: The Loy Yang B power station , which were acquired in 2017. Chow Tai Fook Capital is owned by the descendants of the late Chow Tai Fook Jewellery founder Chow Chi-yuen ( Chinese : 周至元 ) and his son-in-law, the late Cheng Yu-tung , which includes the current Chow Tai Fook Jewellery Group chairman, Chow Tai Fook (Holding) director Henry Cheng . The Chow Tai Fook group began with the Chow Tai Fook jewellery store , founded by Chow Chi-yuen in 1929 in Guangzhou, China. The store shifted its business to Portuguese Macau in 1940 (some say 1931 ) and then to British Hong Kong after

3808-583: The 1,200-member committee that selects the Chief executive . Through interests other than property, they have influence on many more seats, such as transportation. Developers' interests are represented in LegCo in a functional constituency seat for the real estate and construction sub-sector. Abraham Razack has occupied the seat since his first election in 2000; he has since been elected unopposed four times. Historically, there has been public perception that

3920-504: The 1973–74 financial year. The company also formed joint ventures with fellow developer Sun Hung Kai Properties (SHK) and non-profit organisation Tung Wah Group of Hospitals . Kwok Tak-seng , patriarch of SHK, also served as a director of New World Development from the 1970s until his death in 1990. One of the initial rental holdings of NWD, Manning House, was in fact developed by Kin Kiu Enterprises ( 建僑企業 ) in 1965. It

4032-755: The British Virgin Islands) and Chow Tai Fook Enterprises Limited (incorporated in Hong Kong), owned two listed companies as the significant shareholder: Chow Tai Fook Jewellery Group Limited ( 周大福珠寶集團有限公司 , incorporated in the Cayman Islands; 89.3%) and New World Development Company Limited ( 新世界發展有限公司 ; 44.39%). New World Development also owned a few listed second-tier subsidiaries (with regard to Chow Tai Fook Enterprises), such as New World Department Store China , NWS Holdings , etc. New World China Land , another second-tier subsidiary,

4144-429: The Chow Tai Fook group, in the past. If counting underlying shares, as of 2018, Chow Tai Fook Capital, via Chow Tai Fook Nominee, owned 173.30% of issued shares of Mongolia Energy Corporation, as the denominator did not count underlying shares. Chow Tai Fook Nominee, as of 31 December 2017, owned 11.65% of the H shares of Shengjing Bank, equivalent to 3.10% of total share capital. Chow Tai Fook Nominee also formed

4256-588: The Civil Service Denise Yue Chung-yee , signed off on the approval for him to take up the job within three years of leaving, failing to take into account the appearance of conflict of interest resulting from the Hung Hom Peninsula affair. New World argued that they hired Leung in good faith, after the government had given clearance. New World announced in the early hours of 16 August that the parties had agreed to rescind

4368-534: The Gemological Institute of America (GIA) partnered with Chow Tai Fook on a pilot program that will use blockchain to deliver digital diamond-grading reports. On 17 January 2020, Chow Tai Fook Jewellery Group acquired the natural-coloured gem specialist ENZO. As at 30 September 2024, the group had 7,346 points of sale in total, including 7,191 POS in mainland China and 155 combined in Hong Kong & Macau of China and other markets. The Group closed

4480-510: The Hong Kong Institute of Surveyors, there has been a wide variation of prices from one project to another. The general lack of comparability of sales prices for buyers and end-users due to developers being free to include all sorts of different common areas into price calculation. Unlike measures in other jurisdictions, such as British Columbia, the "gross floor area" is based on a floor area that includes balconies and verandas and

4592-402: The K11 HK app, customers who spend with Visa can earn K Dollars automatically. The Hung Hom Peninsula was sold for a below-market land premium of HK$ 864 million to New World Development, who subsequently sold off half share to Sun Hung Kai Properties . In 2004, the consortium announced the demolition of these buildings to make way for luxury apartments, to be faced with huge popular outcry about

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4704-537: The Kowloon City branch was hit twice by armed robberies. The thieves also injured a staff member of the jewellery store and a student walking nearby in the second robbery. In 1985, in front of the Kowloon City branch, a gunfight broke out between the Royal Hong Kong Police and the robbers, in which a policeman was injured. On the same day, a man with a gunshot wound arrived at the hospital, who

4816-801: The New Territories. Developers' returns have been reinvested into other business sectors such as utilities, which had the benefit of being stable and highly cash-generative, and often had significant real estate of their own. Leading conglomerate Cheung Kong Holdings , controlled by Li Ka-shing , is the foremost port operator, and also has significant retail presence within the territory in form of hotels, telecommunications, retail stores – supermarkets ( ParknShop ), home appliances (Fortress) and cosmetics chains ( Watsons ). In recent years, Private equity real estate firms such as Gaw Capital and Phoenix Property Investors have also been increasing their holdings in Hong Kong real estate. Sun Hung Kai

4928-648: The SKYCITY complex at the Hong Kong International Airport "11 SKIES". NWD established Share for Good, Hong Kong's first large-scale crowd-donation platform in March 2022, to meet the immediate needs of the impoverished in the fifth wave of COVID-19. In collaboration with Rafa Nadal Academy, Hong Kong Golf & Tennis Academy welcomed Asia's first Rafa Nadal Tennis Center in July 2022. NWD collaborated with 4 corporations in July 2023 to establish

5040-527: The Stock Exchange of Hong Kong Limited (SEHK) (SEHK: 17) in 1972. To bring together infrastructure projects in Hong Kong and Mainland China, New World Infrastructure Limited (NWI) was created and listed on SEHK (SEHK: 301) in October 1995. New World Services Limited (NWS) was then formed in April 1997 to integrate the group's service-related businesses. By July 1999, New World China Land Limited (NWCL)

5152-496: The Tsang administration decided to break the impasse. The government announced in October 2010 that it would set up a 14-member committee to consider direct legislation to regulate property transactions in the primary market, and to make recommendations within a year. In March 2012, following a two-month public consultation during which a clear consensus emerged for legislation as soon as possible to deal with deceptive sales practices,

5264-608: The US conservative Heritage Foundation as 'World's Freest Economy' in their Index of Economic Freedom for 15 consecutive years, has a strong consumer culture but a weak culture of consumer protection . Even the Consumer Council, the only body whose role is to protect consumers, has no investigative or disciplinary authority; furthermore, it has never reported on developers and property sales. According to corporate governance activist David Webb , "the fact that we keep winning

5376-626: The aforementioned water and electricity joint venture, Sino-French Holdings (Hong Kong), held by Chow Tai Fook Enterpriese (CTFE), was sold to the listed second-tier subsidiary of CTFE, New World Infrastructure, in 1997 for HK$ 1 billion The stake in Sino-French Holdings (Hong Kong) was then transferred to another listed subsidiary NWS Holdings . The indirect stake in CEM was sold in 2014. As of 2018, New World Development owned 16 hotels, but most of them have been closely associated with

5488-613: The benefit of any sales brochure or price list. This tactic was exploited to help hype sales by creating false impressions of a development project's popularity and prices. In the aftermath of complaints, the government, the Consumer Council, the Real Estate Developers’ Association and the Estate Agents’ Authority (EAA) negotiated a closed-door agreement where the EAA issued set of revised sales guidelines, while

5600-570: The book. The owners of the Chow Tai Fook–New World Development group, the Cheng Yu-tung family, has been sometimes considered one of the four big tycoon families of Hong Kong . NWS Holdings , via NWS Transport Services, owned Citybus and New World First Bus , two of the franchised bus service providers in Hong Kong. The two companies operate as a monopoly on the bus routes of Hong Kong Island, as well as some of

5712-557: The breakout of the Second Sino-Japanese War in the 1930s and the establishment of the People's Republic of China in 1949. The group returned to mainland China after the market reforms of the 1980s, notably as New World Department Store China and former listed company New World China Land . Cheng Yu-tung took over the business empire from his father-in-law Chow Chi-yuen in 1956. Other sons of Chow emigrated after

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5824-537: The business in 1956 and their descendants continue to own the business today. Chow Tai Fook Jewellery Company Limited ( 周大福珠寶金行有限公司 ) was the core company of the store chain. It was incorporated in British Hong Kong in 1961. The brand is popular in the Chinese-speaking world, according to a research by CLSA . The store has retail outlets in several countries, including over 6,800 retail outlets in mainland China. Cheng invented gold with 99.99% purity as

5936-425: The chairman of the company. As of 1973, Young and his son Albert Yeung Bing-ching ( 楊秉正 ) were the directors of NWD, of which Young also served as one of the two vice-chairmen. As of 1986, Albert Yeung and his brother Howard Yeung Ping-leung ( 楊秉樑 ) still served as members of the board of NWD. Albert also owned a small personal stake in NWD in 1986. New World Hotels (Holdings), formerly Kai Tak Land Investment ,

6048-581: The contract. The company has managed the Avenue of Stars for 11 years, and its contract is due to expire. It was announced that the Leisure and Cultural Services Department of the Hong Kong government would redevelop and expand the avenue jointly with the company. The Hong Kong government declared that the enhancement project would contain limited commercial appeal, and no luxury shops or high-end restaurants would be added. The walkway, very popular with tourists,

6160-455: The cross- harbour routes. In the past, Citybus was owned by British company Stagecoach Group . In 2003 Chow Tai Fook Enterprises, via wholly-owned subsidiary Delta Pearl Limited, acquired the bus company for HK$ 1,646 million, plus the refurbishment of Citybus' debt to third parties which amounted to HK$ 554 million. In 2004, ownership was transferred to NWS Transport Services, a joint venture between listed portion ( NWS Holdings ) and

6272-454: The developers escaped sanction. In 2009 the developers' numbering plan for floor levels of 39 Conduit Road , where 42 intermediate floor numbers were dropped, and the 46th floor penthouse was boldly renumbered "88th floor", stirred controversy. The Consumer Council recognised the accepted common practice of skipping the 13th and 14th floors, but suggested that developers' "imaginary heights [be] brought back to earth." New World Development

6384-461: The developers' cartel. During the 2019–20 Hong Kong protests , Chinese state-run press agency Xinhua attributed the social unrest to the unaffordability of housing, and blamed vested interests for "maximis[ing] gains by obstructing the government in its bid to boost land supply, or raising the price of the land they hoarded, or by changing the land use". A commentary in People's Daily urged: "For

6496-429: The economy — 78 percent of those polled agreed it existed in Hong Kong. Half of those questioned believed the government could still restrain the developers' power and influence through control of the supply of land and housing. Roughly one-third strongly agreed that developers had contributed to the city's economic prosperity, 30 per cent 'fairly agreed', and another 30 per cent disagreed; 44 per cent thought developers had

6608-728: The first "Smart Community" in a transitional housing complex. NWD signed Hong Kong's first "Project Cooperation Agreement regarding Northern Metropolis" in December 2023, to develop a commercial and residential project in the Northern Metropolis with CR Land. The head office is in the New World Tower  [ zh ] in Central, Hong Kong . New World Development owns listed companies NWS Holdings and New World Department Store China . New World China Land Limited

6720-423: The first financial year after the initial public offering in November 1972, NWD had acquired 23 sites by paying HK$ 110 million in cash, and about 101 million new shares with a par value of HK$ 1 each. The issue of new shares and the acquisitions of the holding companies of properties such as Kowloon Town Development Company Limited (not to be confused with Kowloon Development Company ) were completed in

6832-577: The flagship listed company New World Development Company Limited was incorporated in 1970 in British Hong Kong. The jewellery store chain was incorporated as Chow Tai Fook Jewellery Company Limited in 1961 in British Hong Kong, and a new holding company for the jewellery division was incorporated in the Cayman Islands and listed in the Hong Kong S.A.R., now part of China, as Chow Tai Fook Jewellery Group Limited in 2011. As of 2018,

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6944-916: The freest economy in the world is only because there aren't measures of the freedom of the domestic economy." Over the years, there have been a number of controversies involving regulatory lapses and conflicts of interest in the sector. The New York Times noted that Hong Kong has had many controversies over whether developers have overstated the square footage of apartments and the value per square foot of property transactions, for example, how to count terraces, common areas and other features. Developers have been long criticised for hoarding flats and otherwise deliberately withholding completed flats for later sale. Hang Lung Properties, having completed The Long Beach estate in Tai Kok Tsui in 2005, still had unsold units on hand 2018; similarly, in The Cullinan ,

7056-409: The government has rarely exercised its powers to protect consumers. Citizens disapprove of developers. Many are convinced that some government policies are excessively favourable to them. That is why the generality of citizens have the impression that the government colludes with businesses." In addition to various misleading and opaque sales practices, the widening wealth gap and housing prices beyond

7168-411: The government maintains a high land price policy in order to economically benefit from it. In a study commissioned by REDA in 2010, some 90 percent of property-buyers had an average, negative or very negative impression of the property tycoons. Those surveyed were unable to identify what the association did best, and their main criticisms were a lack of transparency coupled with a perceived closeness to

7280-439: The government tabled the Residential Properties (First-hand Sales) Bill that includes a raft of measures aimed at increasing transparency of property transactions, covering show flats, promotional brochures, how flat sizes are defined, and the required timing of the release of data about prices and transactions. The proposed legislation would oblige property developers to cite prices for new properties to use "saleable floor area" as

7392-543: The government's role as the main supplier of building land in the territory has brought with it accusations of collusion and conflicts of interest. In 1995, following three years of deliberation, the Law Reform Commission (LRC) published a report with its recommendations on how developers must describe flats for sale, and adopt standardised methods for calculating living space, but it was not until 2010 when, after protracted discussions with REDA and developers,

7504-587: The government. Scholars note the drastic change in land use policies of the government since the early years of Tung Chee-hwa 's administration: namely, a scaled back provision of public housing and an increase in land supply to the private sector. These measures had the effect of creating shortage and in driving up housing prices significantly since the SARS crisis in 2003. An editorial in Ming Pao said: "Though developers have used controversial marketing gimmicks,

7616-486: The group also consists of two more parent companies in the group structure, namely Chow Tai Fook Capital Limited and its subsidiary Chow Tai Fook (Holding) Limited. They were incorporated in the British Virgin Islands. Chow Tai Fook (Holding) is the parent company of Chow Tai Fook Enterprises and Chow Tai Fook Jewellery Group. The Chow Tai Fook group, via Chow Tai Fook (Holding) Limited (incorporated in

7728-664: The group has also actively participated in various businesses in Mainland China and established itself as one of the largest foreign direct investors in the country. The group's existing investments in Mainland China has exceeded US$ 16.5 billion, spreading across four municipalities and over 19 provinces. New World Development was founded on May 29, 1970, with Dr. Ho Sin Hang as chairman and Cheng Yu-tung as Director and General Manager. The group went public on

7840-434: The group has been partially listed on the stock market via associate company New World Development ( SEHK :  17 , listed since 1972) and subsidiary Chow Tai Fook Jewellery Group Limited ( SEHK :  1929 , listed since 2011). As of 31 December 2018, New World Development was ranked as the 47th-largest company by market capitalization on the Stock Exchange of Hong Kong, which was HK$ 105.68061  billion . However,

7952-593: The group revealed plans to conserve Hong Kong’s 68-year-old State Theatre, a Grade I historic site, partnering with local and international designers and artisans. In that month, the group began selling THE PAVILIA FARM I, attracting 22,700 registrations in the first round, the highest for any residential property in Hong Kong since 1997. The group also committed over HKD 10 billion to create a large-scale cultural and retail complex in Prince Bay, Shenzhen. In November 2020, NWD named its mixed-use development project within

8064-541: The group's service flagship, overseeing operations in services, infrastructure, and ports across Hong Kong, Macau, and Mainland China. All group shares were consolidated under NWS Holdings Limited, which then commenced trading on SEHK. New World Department Store China Limited (SEHK: 0825) went public on SEHK in July 2007. The Guangzhou Dongxin Expressway—in which NWS Holdings owned a 40.8% ownership stake—officially inaugurated in December 2010. In April 2015, NWD formed

8176-415: The housing situation became critical in the 2010s, the government came under pressure to act to increase housing supply. Pointing to data that the number of unsold units in completed projects had been on the rise, the government introduced measures to stop developers from hoarding flats. In 2018, the government proposed a vacancy tax that targets all newly completed flats remaining unoccupied for six months in

8288-413: The issued share capital. As of 2018, CTFE still owned 44.41% shares of NWD, or 4,535,634,444 shares. New World Development started its expansion in the 1970s with the acquisition of numerous properties and companies. The flagship property, New World Centre was built on the former site of Holt's Wharf , a former godown terminal that was owned by British companies Swire Group and Blue Funnel Line . In

8400-636: The largest tycoon families of Hong Kong] as the founders reach retirement age or pass away.". NWD also previously owned a minority stake in CSL New World Mobility . The stake was sold to the PCCW group in 2013. One-third of the share capital of Asia Television (ATV) was acquired in 1988, but the stake was sold in the 1990s. In the nearby enclave of Portuguese Macau , NWD [ sic ] once owned an 85% stake of Macao Water (also known as Sociedade de Abastecimento de Águas de Macau) via

8512-600: The legislation on the grounds that "contravened the protection of the right of private ownership and disposal of property stipulated in the Basic Law." They also argued banning the use of the GFA measure was denial their constitutional right to freedom of expression, and hinted at the possibility of a constitutional challenge. They also complained of the unfairness of allowing GFA for secondary home but not for selling first-hand properties. REDA argued to be allowed to include GFA "as

8624-603: The local district council had been favourable. In an apparent attempt to de-fuse the public furore at the apparent collusion between government and big business, the government promised a public consultation. Chubby Hearts HK$ 7.8 million was granted by the Hong Kong Mega Arts and Cultural Events Committee to host in February 2024 Chubby Hearts by British designer Anya Hindmarch , who has a shop in K11 Musea,

8736-427: The most control over property prices, with the government scoring 23 percent. REDA has consistently lobbied against government regulation in the property sector. Nevertheless, the political influence they wield has been the source of disharmony within Hong Kong society. Public discontent has escalated to hatred of the property tycoons. Markus, grand nephew of Run Run Shaw observed: "Until recently, crony capitalism

8848-452: The needless destruction of "perfectly good buildings" to satisfy "corporate greed". In an unprecedented about-turn, the developers withdrew the plan on 10 December 2004. In 2008, New World was the subject of controversy when it announced it had hired former Permanent Secretary for Housing, Planning and Lands Leung Chin-man as deputy managing director and executive director of its China subsidiary, New World China Land Ltd. The Secretary for

8960-410: The only requirement is to conform to rudimentary fire regulations. According to The Standard , developers use glass walls, deliberately undersized furniture, missing doors, and ceilings that are higher than specifications to falsely create the impression of spaciousness. REDA asserted its members' show flats are accurate representations, and denied there was need for regulation. Sun Hung Kai Properties

9072-447: The outbreak of Hong Kong 1967 leftist riots , such as Stephen Chow Shue-tong ( 周樹堂 ), an architect who emigrated to Canada. Stephen Chow also involved in the founding of the real estate division of Chow Tai Fook group in the 1960s. Cheng transformed the group into a diversified empire, with interests in jewellery retailing, real estate , hotels, transportation, public utilities, and other businesses. In 1961, Chow Tai Fook Jewellery built

9184-441: The period since 1997. For 5 continuous years since 2005, it held the no. 1 market share position in its industry segment. In 2010, Chow Tai Fook Jewellery purchased Cullinan Heritage, a 507-carat diamond, for US$ 35.3 million, setting a new record for the highest price paid for a rough diamond. On 15 December 2011, the jewellery division of Chow Tai Fook group, under new holding company Chow Tai Fook Jewellery Group Limited,

9296-477: The practice of land premiums means that the well-capitalised and established players in the industry are favoured. It has been speculated that civil servants from the Lands department have incentive to offer deals amenable to major developers, as many find ready employment and also professional afterlife with the major developers. Government sought to protect revenues by setting a minimum price at land auctions after

9408-502: The reach of everyday residents have become core livelihood issues. According to BusinessWeek, property prices in Hong Kong have tripled and median monthly household incomes have stagnated at around HK$ 20,000 (US$ 2,580) since 1997. The vicar-general of the Catholic diocese demonised Li Ka-shing for his policies, comparing him to the devil. Suffering criticisms of opacity, the association engaged Ogilvy Public Relations , at whose behest

9520-452: The record for the highest price paid for a rough diamond. The company paid US$ 10 million for a diamond weighing 255.61 carats. By September 2010, the company had 1,000 chain stores in mainland China, including franchisees and its own outlets; it also set an objective of opening 2,000 chain stores in mainland China by the year of 2020. Chow Tai Fook Jewellery has played a leading role in its market segment since it foundation, especially in

9632-465: The richest people in Hong Kong (with Raymond and Thomas Kwok of Sun Hung Kai counting as one) according to Forbes – Li Ka-shing (Cheung Kong), the Kwok brothers, Lee Shau-kee (Henderson Land Development), and Cheng Yu-tung (New World Development) – are vice chairmen. According to an analysis by the South China Morning Post , 12 major property conglomerates directly speak for at least 64 seats on

9744-497: The sake of public interest … it is time developers show their utmost sincerity instead of minding their own business, hoarding land for profit and earning the last penny". The government of Hong Kong has a monopoly on land supply, and it is heavily reliant on revenue derived from property. The government, under British colonial rule, created a system for land use based on grants of leases. Any redevelopment of properties under existing leases would be subject to negotiations to determine

9856-485: The same purchaser were allegedly given, but were excluded from the calculation. This allowed SHK to raise prices of the next batch of 500 units by 5–10 percent; SHKP has denied the allegations. Retail price lists are frequently not available, or appear after the event. At the pre-sale of two housing developments, ' Park Island ' and ' Le Point ', buyers were told by developers, Sun Hung Kai and Cheung Kong respectively, to make down-payment of HK$ 50,000 (US$ 6,430) without

9968-420: The size of the unlisted portion of the Chow Tai Fook business empire is unclear. The Financial Times quoted one banker of the Cheng Yu-tung family, who said, "You can't look at [Cheng] YT without looking at the private side of the business and his ability to spot early investment opportunities". Notable unlisted businesses of the group include Rosewood Hotel Group , as well as Australia-based Alinta Energy and

10080-704: The small circle of architects and banks means secrets are difficult to keep for long. They refrain from official price-cutting, although they may offer discounts, cash rebates or other inducements to the buying public. The orderly competition lowers operating risk and ensures lucrative returns. Property developers are major landlords of residential, retail and office space in the territory, engaged in all aspects of property development, construction, property investment and management. Most hold sizeable construction land banks , such as Henderson Land, Sun Hung Kai Properties, New World Development and Cheung Kong, which hold between them over 10 square kilometres (3.9 sq mi) in

10192-434: The sole measurement in quoting the size of a property and the price per square foot in all sales-related documents, including advertisements. The measure is backed by maximum penalty for breach of HK$ 5 million, and up to seven years' imprisonment. Under the proposed legislation, developers may be subject to a fine of up to HK$ 500,000 if where deposits are taken from flat buyers before price lists are published. REDA objected

10304-499: The term "gross floor area" in advertising flats in new developments; developers must henceforth specify the size of flats in terms of "saleable area" – the usable space within the flat – in sales brochures for new residential projects. In the absence of strict rules for building authorities to regulate the designs of show flats, developers have been accused of misleading buyers by creating deceptive units to market their products. These are often located off-site, inside shopping malls, and

10416-674: The unlisted portion of Chow Tai Fook Enterprises. NWS Transport Services also owned New World First Bus and New World First Ferry . In December 2016, NWS Holdings acquired the remaining 50% share of NWS Transport Services from parent company Chow Tai Fook Enterprises, floating the bus businesses indirectly on the stock exchange. The price was HK$ 1.38 billion. Goshawk Aviation was a 50–50 joint venture of Chow Tai Fook Enterprises and associate company NWS Holdings . In June 2018, Goshawk Aviation acquired Irish-based Sky Aviation Leasing International, an aviation leasing company. The company also ordered 20 A320neo from Airbus in July 2018. In

10528-418: The various development firms are public figures whose opinions are regularly solicited by the media. Real Estate Developers Association (REDA), the industry body representing the developers established in 1965, has had only 3 chairmen since its inception. It was headed by Stanley Ho for 25 years until he stepped down in 2011, to be replaced by former Swire Properties managing director, Keith Kerr. Four of

10640-408: Was Director of Housing, the government had sold Hung Hom Peninsula, an unused Private Sector Participation Scheme project, at less than half of the original asking price. There was widespread suspicion among members of the public that job offer was a quid pro quo for the favours he allegedly granted to its parent company, New World Development (NWD), in 2004. SHK Executive Director Thomas Chan

10752-402: Was a conspiracy theory ... Now with what's happened with Donald Tsang and his relationship with these businessmen, the conspiracy theory has been revealed to be true." During the final years his administration, Tsang became the focus of controversy over pecuniary benefits he allegedly received from property tycoons, such as a trip to Phuket on a private jet allegedly owned by Cheung Chung-kiu,

10864-417: Was a listed company until its privatization by New World Development in 2016. The privatization of listed second-tier subsidiary New World Department Store China by New World Development was not approved by the minority shareholders in 2017. Another second-tier listed subsidiary, New World Hotels (Holdings) , was privatized by New World Development and Chow Tai Fook Enterprises in 1990. New World Development

10976-468: Was acquired by Rosewood Hotel Group from aforementioned CTF Holdings in December 2013. Some of the hotels of New World Development, as of 2018, were still managed by Rosewood Hotel Group. In 2016, CTFE acquired Baha Mar Resort, a mega-resort project in Nassau, Bahamas . The 3 hotels of Baha Mar Resort were then managed by Rosewood, Grand Hyatt , and SLS Hotels , respectively. Rosewood Hotel Group

11088-573: Was arrested by the Independent Commission Against Corruption (ICAC) on 19 March 2013. Eight further people linked to the company were taken into police custody in the afternoon on 29 March 2012. Co-chairmen Thomas and Raymond Kwok and five others were arrested by the ICAC on allegations of corruption. Rafael Hui , former chief secretary, was also taken in for questioning and later released on bail. The probe caused

11200-467: Was closed off for three years while the expansion was undertaken. The decision to award the contract for the redevelopment to the company without putting it out to tender, on the justification that the project was non-profit, sparked controversy locally. Residents' groups and other development companies owning properties adjacent to the walk expressed discontent, whilst the LCSD claimed that consultations with

11312-596: Was criticised for its sales tactics at its The Arch development in West Kowloon in 2005. The company was accused of the practice of "internal sales" of uncompleted units, the absence of sale price-lists, and also for hyping sales for flats in The Arch by announcing inflated prices (per square metre) achieved. A buyer apparently paid HK$ 168 million, or HK$ 31,300 per square foot, for a 5,360-square-foot (498 m ) penthouse. Discounts on additional units bought by

11424-474: Was formerly known as Managing Director (until 2012) and General Manager (until 2020) The New World CLUB is a loyalty program operated by the New World Group that offers members benefit such as exclusive discounts and events. There are currently 3 membership tiers. The K Dollar Program is a loyalty initiative developed in collaboration between New World Development, K11, and Chow Tai Fook. By becoming

11536-458: Was headed by Sonia Cheng, daughter of Henry Cheng and granddaughter of the late Cheng Yu-tung , patriarchs of CTFE and NWD. Chow Tai Fook Capital owned shares of listed companies Giordano , Hsin Chong , Integrated Waste Solutions Group Holdings , Mongolia Energy Corporation , New Times Energy , and Shengjing Bank since 2015. These shares were personally owned by Cheng Yu-tung, patriarch of

11648-554: Was incorporated in 1957 and was acquired by New World Development in October 1976. Kai Tak Land Investment's Kai Tak Commercial Building was added to NWD's rental portfolio. In October 1976, NWD also acquired privately owned Timely Enterprises. Timely Enterprises was the company that owned the American International Tower ( 友邦行 ; named after AIA Group ), which was renamed New World Tower  [ zh ] (now New World Tower, tower 1) in 1980. It

11760-642: Was involved in controversy when allegedly sold 39 flats at The Masterpiece in Tsim Sha Tsui to business associates before the public sale in August 2010 to create an illusion of keen interest. This prompted the government to urge developers to establish a disclosure mechanism on sales of residential property to related parties. In August 2008, there was furore over the appointment of the former Permanent Secretary for Housing, Planning and Lands, Leung Chin-man , to deputy managing director and executive director of New World China Land Ltd. In 2004, while Leung

11872-468: Was launched to consolidate the group’s property projects in Mainland China and was listed on SEHK (SEHK: 917). In September 2001, NWS purchased all outstanding shares of Ngo Kee Construction Company Limited. A year later, Pacific Ports Company Limited (PPC) acquired NWI and took ownership of NWS from NWD. Reorganization of New World Group was finalized in January 2003. Following a name change from Pacific Ports Company Limited, NWS Holdings Limited emerged as

11984-553: Was listed on the Stock Exchange of Hong Kong at a price of HK$ 15 per share under the stock code ( ticker symbol ) 1929, the year of establishment of the chain. On 4 April 2017, according to Sotheby's , Chow Tai Fook (the press release claimed it was jeweller Chow Tai Fook but Financial Times , quoting Sotheby's tweet , reported it as Chow Tai Fook Enterprises) acquired the Pink Star diamond at an auction in Hong Kong for US$ 71.2 million (HK$ 553 million). On 23 May 2018,

12096-469: Was owned by Henry Cheng and his employee and brother-in-law William Doo Wai-hoi at that time. As of 2018, CTF Holdings is a wholly-owned subsidiary of Chow Tai Fook Enterprises. However, CTFE's 36% stake in Beames Holdings (and its subsidiaries such as New World Hotels (Holdings)) was sold back to New World Development in November 2015. Two hotels from the former New World Hotels (Holdings),

12208-565: Was reported that Cheng Yu-tung , patriarch of Chow Tai Fook Jewellery, was one of the directors of Kin Kiu Enterprises at that time. Both Kin Kiu Enterprises and Manning House were part of NWD's initial wholly-owned subsidiaries and portfolio in 1973. The 11th floor of Manning House also served as the headquarters of NWD. According to the news report, the known directors of Kin Kiu Enterprises were Young Chi-wan ( 楊志雲 ; notable for King Fook Jewellery and Hotel Miramar ), as well as K.W. Yue ( 余基溫 , notable for Hotel Miramar ), who also served as

12320-443: Was robbed by Kwai Ping-hung  [ zh ] . Kwai Ping-hung, who was also involved in other crime where he was deemed Hong Kong's most wanted man. In recent years, however, the company has seldom experienced armed robberies. Notorious robbers Yip Kai Foon and Kwai Ping-hung were arrested in 1996 and 2003, respectively. New World Development is one of the leading property developers based in Hong Kong. It has been listed on

12432-750: Was suspected to be one of the robbers. In 1989, armed robbers disguised as customers stole luxury watches from the Causeway Bay Plaza  [ zh ] branch. It was reported the watches had a worth of HK$ 5 million at that time. In 1991, the Kowloon City branch suffered another armed robbery, followed by the robbery of the China Building  [ zh ] branch in Central in September and again in October 1991. In 1998 another branch in Paterson Street , Causeway Bay

12544-480: Was the headquarters of New World Development and Chow Tai Fook Enterprises. Construction companies, such as Hip Hing Construction , Vibro (Hong Kong)  [ zh ] , and others were acquired by NWD circa 1973. In the past, NWD also owned New World Telecommunications , one of Hong Kong's major telecommunication companies. However, the sale of NWD to competitor HKBN in 2016 was described by Financial Times as part of "the process of succession planning [of

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