Real Estate
New World Turmoil Rocks One of Hong Kong’s Richest Families
- New World’s sale of K11 Art Mall has stalled, sources say
- The firm’s bonds plummeted due to a string of challenges
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For decades, Hong Kong’s “big four” property dynasties have been viewed as cash-rich bastions of stability. A crisis of confidence at New World Development Co. is now putting that notion to the test.
In the span of a week, New World proposed pledging $15 billion of prized properties for loans, fended off debt restructuring concerns and saw its bond prices go into freefall. The developer has changed its chief executive officer twice in two months, including the surprise sidelining of a family scion.