economie

Meet the Hong Kong billionaires behind some of the world’s glitziest hotels — and the generation who could inherit the empire

September 24, 20240
Cheng Yu-Teng, pictured in the center, ran a property empire birthed from the profits of his jewelry business.

Jonathan Wong/South China Morning Post via Getty Image

The Chengs’ empire can be traced back to World War II, when their grandfather, Cheng Yu-Tung, started working as an apprentice at a gold shop in Macau called Chow Tai Fook.

In 1943, he married the daughter of the shop’s owner, moving shortly after to Hong Kong to open the store’s first branch. As the Asian financial hub’s affluence accelerated after the war, so did Cheng’s business, which specialized in 24-karat gold jewelry.

The jeweler invested his profits heavily in real estate during the 1970s, starting a company called New World Development. Now publicly listed, it owns department stores, hotels, and infrastructure across mainland China, Hong Kong, and the US.

Cheng died in 2016 at the age of 91, when he was worth about $14.6 billion. His elder son, Henry, took over the jewelry and real estate empire.

With the 77-year-old Henry now signaling that he may be looking for a successor, his two eldest children, Adrian and Sonia, have entered the spotlight.

Each has been running a key pillar of the family’s property business for over a decade, so they’re considered the de facto contenders for their father’s position.

Both oversaw meaningful expansions in their primary fields — hotels for Sonia and commercial real estate for Adrian — and have worked to transform their properties into cultural icons for younger generations.

Sonia runs the family’s hotel business, turning it into a sprawling collection of resorts and luxury locations.
Adrian Cheng, pictured in the center, launched K11’s art malls in 2008.

Keith Tsuji/Getty Images for K11

Adrian, 44, was long presumed to succeed his father as head of the family’s wealth.

The eldest of four siblings, he started his career as a banker at UBS and Goldman Sachs before diving into the family business in 2007.

A year later, Adrian launched K11, his brand of malls and office buildings in Hong Kong and China that came with a unique selling point — a focus on showcasing art and designer work.

Art has been core to his personal brand. A classical singer who trained on Broadway, he graduated from Harvard with a Bachelor’s in East Asian Studies.

He’s perhaps best known for K11 Musea, a $2.6 billion mall on Hong Kong’s Victoria Dockside that has some 40 art installations and hosted Asia’s first-ever Cannes Film Festival Week in 2019.

Adrian himself maintains a long list of personal art ventures, from organizing a Louis Vuitton menswear fashion show in November to paying to save an iconic 1,300-seat cinema that opened in 1952.

Often seen as the heir apparent to the Cheng business empire, he’s dominated the lion’s share of headlines about the family.

Like his sister, he led aggressive expansions for New World Development, pouring billions into residential and commercial buildings in Hong Kong and Chinese urban hubs.

His vision is to bring K11 to nine Chinese cities in total, and he’s now building a mall in Shenzhen that’s estimated to cost $1.4 billion.

A prolific investor, he’s put money into over 60 companies through his fund, C Ventures, including Shein, EV makers like XPeng, and COVID-19 detection tech startup Prenetics.

C Ventures declared assets of over $700 million when it merged with a Swiss investment firm in July.

Adrian is married to Jennifer Yu, who runs Chow Tai Fook Education, a collection of K-12 schools and play facilities, and Arch Education, a tutoring company.

Their father, Henry, hinted at a succession toss-up at a time when Adrian was expected to be heir.
The entrance of the K11 Art Mall in Hong Kong on September 2.

NurPhoto/Getty Images

Amid rumors of a succession feud, the Chengs have another storm to weather — Hong Kong’s ailing property market.

The city has suffered a rout among investors and residents after recent years of political turmoil, coupled with a weaker post-COVID economy and lower demand for property from mainland China’s wealthy buyers.

Rising taxes and interest rates in the city have also slowed the market, hemming in New World Development after it gobbled up loans and new properties.

The company’s stock has dropped about 82% in the last five years.

In late August, New World Development reported that it was expecting to post its first loss in 20 years — of up to $2.6 billion — for the 2023 financial year, which ended in June.

It was a sign of heavy pressure on the company, which is already considered one of Hong Kong’s most indebted property developers.

The Financial Times reported shortly after the announcement, citing several unnamed sources familiar with the company, that New World Development staff were growing worried about how quickly the Chengs were expanding.

“Today we face one of the most challenging combinations seen in decades — from high interest rates to uncertain market conditions,” Adrian said in a statement to the FT. “I believe this game of patience paired with consistency and dedication will eventually get us to our goals.”

He’s been attempting to shore up confidence in Hong Kong’s status as a financial hub, starting an institute in November 2023 to promote the city to the wealthy.

“I’m very confident we will be number one for family office wealth management in the future,” he told Bloomberg in August.

A representative for New World Development declined to comment for this story.