Zhao Guoxiong, the Executive Director of Cheung Kong, has expressed significant concerns regarding Hong Kong’s economy and its heavy reliance on the real estate sector. In a recent interview, he emphasized that the property prices in Hong Kong have already bottomed out, indicating a potential stabilization in the market. However, he cautioned that the economic recovery remains fragile, and the city cannot solely depend on real estate for its financial health.

Zhao highlighted the need for Hong Kong to diversify its economic portfolio beyond real estate. He pointed out that the traditional model, which heavily relies on land sales and property development, is no longer sustainable given the current economic challenges. The real estate sector has been struggling, and Zhao believes that exploring new development areas is crucial for fostering economic growth. He stated, “Hong Kong must not rely solely on real estate; it needs to develop new industries to ensure long-term economic stability”. This perspective aligns with broader calls for economic diversification in Hong Kong, as the city seeks to adapt to changing market conditions and reduce its vulnerability to fluctuations in the property market.

Moreover, Zhao’s insights reflect a growing consensus among economists and industry leaders that Hong Kong’s economic strategies must evolve. The city is facing challenges such as declining land sales and a sluggish property market, which threaten its funding model. Zhao’s views underscore the urgency for the government and businesses to innovate and invest in sectors that can drive sustainable growth, thereby reducing the over-reliance on real estate.