Hong Kong developer New World appoints another CEO after only two months
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The company’s stock was suspended from trading on Nov 29 after its shares fell as much as 6.9 per cent following the Bloomberg report.
PHOTO: REUTERS
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HONG KONG – New World Development has replaced its chief executive officer in another dramatic development for the Hong Kong property company mired in leadership woes.
The company named Ms Echo Huang Shaomei as CEO, replacing Mr Eric Ma who was in the job for only two months, New World said in a filing to the Hong Kong stock exchange, confirming an earlier Bloomberg report.
The company’s stock was suspended from trading on Nov 29 after its shares fell as much as 6.9 per cent following Bloomberg’s report.
Some of New World’s US dollar bonds are set for their worst daily drop in 14 months, after the news of the leadership change.
Its 5.25 per cent perpetual note was down 4.7 cents to 71 cents, the biggest fall since Sept 11, 2023, Bloomberg-compiled prices show. Its 6.25 per cent note fell more than three cents to 45.2 cents, set for the lowest level since August 2023.
The CEO replacement adds to turmoil at the company, which reported its first loss in two decades. Mr Ma was meant to steady the ship after Mr Adrian Cheng, the eldest son of family patriarch Henry Cheng, resigned as New World’s CEO.
Ms Huang has been the CEO of New World China Land, the company’s property arm in mainland China, since 2020. She is a member of Guangdong Provincial Committee of the Chinese People’s Political Consultative Conference, according to her profile on New World’s website.
Her appointment came after the company reviewed its development direction and decided that the CEO’s role had to be adjusted, Mr Henry Cheng said in a press release, adding: “I am very pleased to have found a more suitable candidate.”
Ms Huang will be responsible for operations in Hong Kong and mainland China, while reporting to Mr Henry Cheng. The group has also appointed Mr Gilbert Ho and Mr Lau Fu-Keung as executive directors.
Mr Ma is a former senior government official who oversaw land development matters. He left the post in 2017 and joined New World’s sister company NWS Holdings a year later as its chief operating officer, and became the firm’s CEO in 2019.
He resigned from the company in January 2024, when he was named New World’s chief operating officer, before taking over Mr Adrian Cheng’s role.
Morningstar analyst Jeff Zhang does not expect Mr Ma’s departure will have significant impact on New World’s operations. “The company will continue to promote residential sales and asset divestment in the future to accelerate deleveraging,” he said, adding that it will take a long time to see a substantial decrease in the company’s net-debt ratio.
New World became the centre of the Cheng family’s succession saga after the elder Mr Cheng said he was still looking for a successor for the family’s business empire and would not rule out bringing in external talent in an interview in 2023.
The comment overturned expectations that Mr Adrian Cheng was the strongest candidate to head the family business empire that spans real estate development, retail, infrastructure, jewellery and insurance.
The elder Mr Cheng has also assigned key parts of the business group to his other children.
Ms Sonia Cheng is co-vice chairman of the family group’s largest listed arm, Chow Tai Fook Jewellery Group. Mr Brian Cheng is co-CEO of NWS, while Mr Christopher Cheng is co-CEO of the family’s private investment vehicle.
Mr Henry Cheng remains in charge of the family office and chairman of all three listed companies. The firm will resume trading on Dec 2. BLOOMBERG
