Property boss sells all his shares to siblings

Chinese Estates chairman Lau Ming-wai has sold all his shares worth an estimated HK$2.4 billion in the company to three of his siblings, sparking speculation that public office is in his future.

The siblings - Josephine Lau Sau-wah, 11, Joseph Lau Chung-hok, seven, and Josie Lau Sau-yee, two - are his father Joseph Lau Luen-hung's children with Kimbee Chan Hoi-wan.

Lau Ming-wai, who some say is preparing to do more public service, held around 476 million shares, or 24.97 percent, in the company, while Chan held 50.02 percent as of the end of 2019, according to an annual report of Chinese Estates.

Lau, 40, vice chairman of the Youth Development Commission and deputy chairman of Ocean Park Hong Kong, will remain chairman of the company.

The shareholding change was a part of an allocation adjustment of his personal portfolio, according to market sources.

Lau as deputy chairman of Ocean Park has done a lot of lobbying for funds for the cash-strapped park.

Chinese Estates shares closed at HK$4.95 yesterday, up 3.77 percent from the day before and almost doubling last Friday's price.

Kenny Wen Kit, a strategist at Everbright Sun Hung Kai Securities, said the stock surged because the market received early news about Lau's move.

Stanley Chik Yiu-fai, head of research at Bright Smart Securities & Commodities, said Chinese Estates' volatile share performance last Friday was not unusual because it had surged rapidly previously due to assets being sold or special dividends being issued.

Chik predicted the market may expect the company to sell assets or declare a special dividend.

The net asset value of the company was high - worth HK$33.569 billion - as of the end of 2019, meaning the market may have a positive view of real estate shares, he added.

Political scholar Ivan Choy Chi-keung from Chinese University said Lau's move yesterday led to rumors he is paving the way for his entry into politics.

Choy surmised that Lau selling his shares was the first step for him joining the government, as the public may question and challenge his business interests due to his family background.

There are still other commercial conflicts of interest, Choy added.

Lau was the deputy secretary of Henry Tang Ying-yen's campaign office in the 2012 chief executive election. He was chairman of the Youth Development Commission from 2015 to 2018, after which he was reassigned as vice chairman of the commission.

He was also appointed as a member of the Commission on Poverty, Health and Medical Development Advisory Committee, Steering Committee on Community Care Fund and as a part-time member of the Central Policy Unit.

winnie.lee@singtaonewscorp.com