HKT's Li optimistic economy 'won't be too bad'

HKT Trust and HKT (6823) chairman Richard Li Tzar-kai says he is confident Hong Kong’s economy “won’t be too bad”  under the support of the SAR government and Beijing and expressed optimism in maintaining distribution payout.

At a shareholder meeting on Thursday, Li, the younger son of billionaire Li Ka-shing, said the city has weathered many storms over the past decade and there is no need for excessive concern.

He added that HKT is well-positioned to offer defensive returns amid the uncertainties surrounding the global economy.

The company is well-positioned to control costs while meeting growing demand from new customers, he noted.

Asked about the impact of global trade tensions on future distribution, Li said he does not foresee any negative effects on the payout unless a global economic recession lasts two to three years.

In the past decade, HKT’s total return, combining share price gains and distribution, has significantly outperformed the benchmark Hang Seng Index, he added.

“An investment of one Hong Kong dollar now turned into more than two Hong Kong dollars,” he said, adding the return rate is around 100 percent, compared to HSI’s 15 percent.

The group’s network and solution services can support Hong Kong’s users and enterprises, helping to strengthen the city’s role as a super connector, Li said.

STAFF REPORTER