〈Asian Post, January 20, 2018〉Billionaire Li Ka-shing has retained his crown as the richest man in Hong Kong, even as Lee Shau-kee narrowed the gap by becoming one of the top wealth gainers last year, the 2018 Forbes Hong Kong Rich List revealed yesterday.

The 50 individuals on the list saw their combined wealth rise by 24 per cent in 2017 to US$307 billion, up US$60 billion, reflecting the biggest one-year wealth change ever recorded for a Forbes Asia 50 Rich List. Their combined wealth nearly matches the size of Hong Kong's economy, with a gross domestic product of US$319.7 billion in 2016.

The gains were driven by the rally in the stock market, as the Hang Seng Index rocketed 36 per cent last year, to rank as the world's best performing major market, while the local property market also rose to a record.

The rankings reflect the 20th consecutive year Li (pictured on left) 89, has topped the table as Hong Kong's richest man. His personal wealth increased by US$5.7 billion for the year, to more than US$36 billion.

Known in Hong Kong as "Superman Li" for his ability to build empires out of ordinary businesses, last year he sold The Center in Central for HK$40.2 billion to a consortium of investors in what could be the world's most expensive property transaction.

His other investments also performed well. Razer, a gaming hardware maker backed by Li, was one of the most sought after listings in Hong Kong in 2017. Its share price shot up 18 per cent in its trading debut in November.

But last year's biggest gainer was Lee (pictured on right), who ranked No 2 on the list with a fortune of US$32.9 billion. Lee's net worth increased US$9.3 billion over the past year, a 40 per jump cent from 2016.

Lee benefited from share-price gains in his flagship company Henderson Land Develop ment as well as holdings in Ping An Insurance and Country Garden, the biggest property developer on the mainland.

〈China Daily, January 19, 2018〉The sale this week of a residential site in Kowloon for a record price and a surge in the stock market are fanning the flames of Hong Kong's red-hot housing market, with developers and individual owners rushing to take advantage of positive sentiment in the sector.

Wheelock Properties released the price list yesterday for 84 flats at Grand Oasis Kai Tak, the second phase of its Oasis Kai Tak project on the site of Hong Kong's former airport, with prices at an average of HK$22,665 per square foot after factoring in a discount of as much as 16.5 per cent.

That is about 12 per cent higher than the HK$20,225 per square foot at the previous launch in September last year.

The cheapest flat at the Grand Oasis Kai Tak development, which is expected to be completed in June next year, is a 360 sq ft unit costing HK$7.6 million.

Almost at the same time, Sun Hung Kai Properties launched the Babington Hill development in Mid-Levels West at an average of HK$32,200 per square foot, after factoring a 12.5 per cent discount, setting a record in the area where flats, which are mostly more than 40 years old, are going for HK$16,000 to HK$18,000 per square foot.

CK Asset Holdings, meanwhile, has revised upwards its target price for the tender of nine villas at Stars By The Harbour in Hung Hom by HK$300 million, or 20 per cent, to HK$2.16 billion.

William Kwok, a director at Cheung Kong Real Estate, a wholly owned subsidiary of CK Asset, said the company was likely to sell the villas to a single buyer.

"It shows developers' optimism about the market outlook after the Kowloon land price set a record. Also buoyed by the wealth effect of a bull run in the stock market, developers is likely to speed up their marketing for new projects," said Sammy Po, the chief executive of Midland Realty's residential department.

〈The Standard, January 18, 2018〉While public attention is focused on the stock rally and property boom, it is important to bear in mind that Hong Kong’s economic well-being depends not so much on asset-value ups and downs as on the more mundane GDP components, including overseas trade and domestic expenditure.

Asset-market performance should reflect the state of the economic fundamentals. But as is well known by now, prices of stocks and properties have been grossly distorted by the inflow of overseas capital in the past several years.

To be sure, the economic fundamentals and corporate earnings have improved since the beginning of last year. What’s more, exceptionally low bank interest rates and the availability of easy credit have contributed to the asset market boom. But the major economic sectors that employ the majority of workers have not grown fast enough to generate the strong demand that can push up wages.

As a result, average workers’ wages have remained static for years despite a persistent low unemployment rate of about 3 percent. This may change this year, which points to a decisive turnaround of the global economy that has endured years of anemic growth since the Great Recession of 2008.

Global economic growth is widely tipped to exceed 3.5 percent while those of the major economies, including the United States, Europe and the Chinese mainland, are expected to show even stronger gains. Some economists predict that increased economic activity will lead to strong demand for commodities, goods and services, helping push inflation up to the targeted 2 percent or more.

That level of inflation is seen as desirable because it can stimulate consumer spending, which, in turn, would encourage greater corporate spending on plant and machinery and employment of more workers to rev up production to meet the projected rise in demand for their goods. In the US, the world’s largest economy, that process has received a further boost by a substantial cut in corporate profit tax as part of the tax overhaul.

A more robust global economy is expected to help revitalize international trade in commodities, manufacturing materials and finished products. An increase in intra-regional trade between the mainland and other Asian economies has already benefited Hong Kong, the region’s most well-established trade services hub.

〈The Standard, January 18, 2018〉Hong Kong's seasonally adjusted unemployment rate fell to 2.9 percent in October to December last year - its lowest in 20 years - as overall unemployment remained at 1.1 percent for the sixth consecutive period.

The key contributing factors include the continuous growth of the economy and external demand staying vibrant with the support of the broadly benign global economic conditions, said Secretary for Labour and Welfare Law Chi-kwong.

"At the same time domestic demand attained solid growth," he added. In comparison with the same period last year, the drop in the unemployment rate was mainly observed in the real estate sector and the foundation and superstructure works of the construction sector.

"On a year-on-year comparison to net out seasonal fluctuations, the improvement in the unemployment situation was particularly visible in the retail, financing, and professional and business services [excluding cleaning and similar activities] sectors, thanks to the revival in related business activities over the past year," Law said.

The labor market is likely to remain tight in the near future, he added. Meanwhile, half of the working population can maintain their standard of living for no more than six months if they are suddenly unable to work for two months or more, according to a survey by the University of Hong Kong public opinion programme.

The poll found that about 80 percent of the respondents have only one source of income to sustain a living, reflecting the insufficient financial well-being of the workforce once they are hit by unexpected life-impacting events.

〈Asian Post, January 17, 2018〉Average new home prices in December rose in most mainland cities since June, mirroring a rally in property stocks this year driven by brighter sales prospects.

New home prices last month rose in 57 of the 70 cities tracked by the government, up from 50 in November and a six-month high, while prices fell in seven cities, down from 10 in November, according to data from the National Bureau of Statistics.

The average cost of new property in the 70 cities increased by 0.4 per cent year in December from the previous month, according to a Reuters calculation.

The month-on-month price increases varied in the top cities of Beijing, Shanghai and Shenzhen. It rose 0.3 per cent in Shanghai, fell 0.2 per cent in Shenzhen while remaining flat in Beijing.

Prices in smaller cities snapped their deceleration of the past months. Kunming in the southwest posted the strongest month-on-month growth of 2.6 per cent, while Haikou in the south saw a rise of 2.2 per cent.

The Hang Seng Mainland Properties Index has risen by 11.4 per cent this year, while the Shanghai Stock Exchange Property Index surged 15.5 per cent, driven mainly by relaxed policies in select cities, and strong results outlook for 2017 and sales in 2018. China Vanke, a top developer in China, saw its Hong Kong-traded shares rise 27.6 per cent this year.

About 10 cities, mostly in the western and central areas, including Lanzhou, Hefei and Chengdu, have tentatively relaxed housing registration policies.

Observers believe this indicates that the overall tightening in place since last year is changing direction and fuelling the rally in mainland property stocks.