KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
New World Development Co., the Hong Kong property giant controlled by the billionaire Cheng family, is reportedly considering replacing Adrian Cheng as CEO after the company reported its first annual loss in two decades. Cheng, who took the helm in 2020, is poised to be replaced by Chief Operating Officer Ma Siu-Cheung, according to insiders. The company has been grappling with significant debt and a challenging property market.
This move would be highly unusual for Hong Kong’s property industry, where family-controlled firms typically handle succession meticulously. Adrian Cheng, grandson of company founder Cheng Yu-Tung, has been seen as the heir apparent. However, concerns over New World's debt levels, which are higher than its peers, have raised investor worries. The company's net debt-to-equity ratio stood at 82.7%, compared to 41.4% for Henderson Land Development Co. and 21.2% for Sun Hung Kai Properties Ltd.
Adrian Cheng oversaw ambitious projects like the K11 MUSEA shopping mall, which launched amid Hong Kong’s political unrest in 2019, and a HK$20 billion ($2.6 billion) entertainment complex near the airport. However, New World has faced financial strain, including defects in two residential towers that required demolition.
Cheng, known for his high-profile social media presence and ties to celebrities, remains a prominent figure in Hong Kong’s business world. However, his potential departure signals significant shifts within one of Asia’s wealthiest families, whose fortune is valued at $23.6 billion.
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