New World Development Shares Soar by 23% After Adrian Cheng Steps Down as CEO
Shares of New World Development, one of Hong Kong’s major property companies, surged by 23% on Friday after the unexpected resignation of Adrian Cheng, a member of the company’s founding family. The company had temporarily halted trading on Thursday, later announcing that Cheng would be stepping down to focus on “public services and personal commitments.”
Following his departure, Chief Operating Officer Eric Ma Siu-Cheung has been appointed as the new CEO, a rare instance of an outsider taking the helm of a family-controlled business in Hong Kong. This leadership shift comes at a critical time for the company, which is grappling with significant challenges.
New World Development recently reported an expected loss of between $2.4 billion and $2.6 billion for the financial year ending in June, driven by falling sales, investment losses, and impairment charges. The company is also burdened by high levels of debt, a problem that has been exacerbated by the broader property market struggles in Hong Kong and mainland China.
Market analysts view the change in leadership as a positive move, signaling improved corporate governance. Alicia Garcia-Herrero, Chief Economist for Asia Pacific at Natixis, noted that this development reflects the importance of having strong management in difficult times.
The sharp rise in New World Development’s stock is also being fueled by recent stimulus measures announced by China. The Chinese central bank has introduced policies aimed at stabilizing the economy, including steps to support the struggling real estate sector. On Thursday, China’s top leaders underscored the need for enhanced fiscal and monetary measures to prevent further declines in the real estate market, addressing broader concerns such as employment and an aging population.
Have you read?
Fastest tanks ever built by Russia.
Impact of Titles on Your Executive Career – Negotiating Job Titles and more!
3 Ways Technology Empowers the Hybrid Work Revolution.
5 Effective Strategies to Reduce Criticism and Captivate Your Essay Readers.
CerebrumIQ Reviews the Average IQ for Managers and Executives.
Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact: info@ceoworld.biz