Adriel Chan called up to take Hang Lung helm

Themis Qi

Hang Lung Properties and Hang Lung Group have appointed Adriel Chan Wenbwo to succeed his father, Ronnie Chan Chi-chung, as chairman of both companies.

The junior Chan has promised to stick to the existing strategies, but the shares fell eight percent yesterday.

Ronnie Chan, who will step down in April, said the group's search has lasted for over a decade and the selected successor performed "as expected, so it was time to have more personal time.

"Just leave the young people to do what they can do," said Hang Lung's chairman and executive director, though he will still offer help when needed as "honorary chair."

Adriel Chan, 41, currently the vice chair and executive director, said he is grateful for his "father's stewardship over many years."

The incoming leader of Hang Lung also vowed there will not be significant changes to the direction of the company, as they "are right."

Now 74, the senior Chan has held the reins of Hang Lung for around 33 years as chairman after taking over the company founded by his father, Chan Tseng-hsi.

In the second year of Ronnie Chan chairing the company, Hang Lung stepped into the mainland market and started with a project in Shanghai, which has become the Grand Gateway 66.

Established in 1960, Hang Lung has become one of the major developers in Hong Kong and the mainland. Most of its development projects and commercial properties are located in nine mainland cities, including Hangzhou, Tianjin and Wuhan.

Referring to the succession, Ronnie Chan admitted he and the board once considered handing over the group to professional managers in the family before 2014. But Adriel Chan's performance was satisfactory and he was allowed to join the board in 2016 and was then appointed vice chair in 2020.

One more suggestion for the successor, Ronnie Chan said yesterday, was to resist being aggressive with investments ahead of what is expected to be a tough year.

Adriel Chan also has confidence that a handover during challenging times will be a learning experience.

Ronnie Chan, who also founded and chaired many non-profit organizations like The Better Hong Kong Foundation and the China Heritage Fund, added that his life "will still be full" after his retirement as he has many hobbies.

The senior Chan is also often quoted for remarks on politics and the economy.

On Article 23, Ronnie Chan noted: "No matter if it is Article 23, 24 or 25, the cornerstone of Hong Kong's prosperity is stability."

When it comes to the US presidential election, Chan said the re-election of Donald Trump will certainly not bring a worse impact. He thinks the Biden administration is "horrible" enough since the existing US crackdown against China is "comprehensive."

Shares of Hang Lung Properties dived 8.4 percent to HK$9.05 apiece yesterday. Citi thinks the rental income from the mainland missed the estimates.

With no direct response to the drop, Ronnie Chan joked it would be better to seek comments from the investment banks.