Tough measures no worry for Hopewell

Hong Kong:  Hopewell Holdings Ltd., the Hong Kong-based property company controlled by Gordon Wu, said it is "little affected" by China's tightening measures to curb gains in the real estate market.

"We only have a small exposure to the Chinese property market," said Thomas Wu, co-managing director of the company and the son of Gordon. "Hopewell mainly invests in infrastructure projects in China and it is a development area encouraged by the Chinese government over the years."

China's property market rebounded and the economy expanded 10.7 per cent in the fourth quarter as the government injected 4 trillion yuan ($585.9 billion, Dh2.15 trillion) to stimulate growth last year.

The government last month raised the amount of money banks are required to keep as reserves and raised the sales tax on homes to crack down on speculation in the housing market.

Hopewell Highway Infrastructure Ltd., 70.3 per cent owned by Hopewell Holdings, operates the Guangzhou-Shenzhen superhighway and toll roads in China.

Hopewell Holding is developing its first Chinese residential and commercial project in the city of Guangzhou, in Guangdong province neighbouring Hong Kong. The project will be completed by June 2011 and could generate sales of about 6 billion to 9 billion yuan, Thomas Wu told reporters in Hong Kong yesterday.

Hopewell Holdings earlier yesterday said its net income in the six months ended December 31 jumped to HK$2.52 billion (Dh1.19 billion) from HK$931 million a year earlier.