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In a rare move, Goldin said in an exchange
filing on Tuesday its board had decided to exit the tendering
process for land use rights for a parcel in the Kai Tak area of
Hong Kong due to "recent social contradiction and economic
instability".
The firm, with interest in financial and property markets, did
not explain what it meant by social contradiction. Company
representatives could not immediately be reached by Reuters
after regular business hours.
Hong Kong's economy expanded at its slowest pace in nearly 10
years in the first quarter due to weaker exports and as the
former British colony was buffeted by the U.S.-China trade war,
along with cooling property prices and volatile stock markets.
The government has maintained its forecast for Hong Kong's
full-year 2019 growth at 2-3%, compared with 3% growth in 2018.
Despite economic weakness, home prices in one of the world's
most expensive property markets rose for the fourth straight
month in April, government data showed last month.
But analysts have said the rising price trend may not be
sustainable, especially as trade tensions between China and the
United States intensify again, leading to a plunge in
transaction volume.
The trade tensions and its impact on the economy of Hong Kong
could hit the rental business of the planned Kai Tak project,
making the return period longer, said Thomas Lam, executive
director of property consultancy Knight Frank.
(Reporting by Sumeet Chatterjee and Clare Jim; Editing by Edmund
Blair)
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