Why did Li Ka Shing “run” away?

A couple of days before, an article called Don't let Li Ka Shing run away aroused intense debate in the society.

Li Ka Shing sold a lot of commercial real estate on mainland, acquired telecommunications in the UK, Italy and other European assets not long ago; in the beginning of the year, Li changed the registration address of his company to Cayman Islands and listed it in market on Hong Kong. When Power Assets Holdings Ltd., the only corporation in Li’s commercial empire registered within Chinese territory has been merged into Cheung Kong Infrastructure Holdings (CKI), the registration addresses of Li’s CK Hutchison have all been transferred out of China.

For Li Ka Shing who has been keeping splitting and selling assets in Hong Kong and mainland for the last two years, escaping from Hong Kong and mainland may become a definite fact. And yet, this series of actions aroused a lot of surprises-- Li Ka Shing disinvested and ran away from China.

Firstly, the reasons for taking these actions are reasonable in the term of commercial consideration since domestic asset price is higher, meanwhile the economic growth slows down; but relatively, European assets are cheap. This global asset structure adjustment is a rational choice in regard to risk and benefit.

However, it is never easy to split commerce with politics, especially for people like Li Ka Shing, commerce and politics are more meaningful since they are always regarded as the strength to stabilize Hong Kong.

In 1990’s, an immigration wave occurred in Hong Kong due to Hong Kong people’s prospection for the future. Mainland chose the H.K. groups with Li Ka Shing as the representative as the stable foundation to break such a prospection as well as maintain economic stabilization in Hong Kong, which is a tacit as well.

With this “tacit”, people like Li benefited more than ever such as being more valued by the local government, getting land more easily and implement more free operation as the laws permitted. With this “tacit”, people like Li got more fortunes while economy in China develops rapidly.

As for the surprise for “Li Ka Shing ran away from China”, it just bases on this invisible contract to a great extent, or the so-called “tacit”, to be more precisely. Therefore, in some degree, this surprise is not totally out of nowhere. Considered by most people, Li failed to obey this “tacit” so he should be judged and condemned. Should this “tacit” be respected on the morality? Before answering to this question, why not look at the nature of this “tacit” first?

This “tacit” is actually a small tacit after the mainland and Hong Kong have signed a series of accurate contracts. In the view of the actual political operation, contracts signed between mainland and Hong Kong represents a series of systems based on the basic laws. If illustrated in a more simple way, it is the words spoken by Deng Xiaoping: unchangeable in fifty years. This contract shall be respected as it should have been.

Of course, the reasons that the surprise for “Li Ka Shing ran away from China” could arouse so many intense debates are not limited to the bold title, simple question and value conflict. What’s more important is that it involves more real considerations.

Immigration intent of people with high net worth in China is an undoubted fact. On one hand, the immigration intent appears in Korea and other country of which economy develops rapidly is normal and complies with rules. Immigration is a legal freedom and right of citizens in accordance with the modern national concept. On the other hand, Deng Xiaoping said at the beginning of the reform and opening up that give an opportunity for some people to be rich in prior to the others, and then let them drive the other ones to be rich later. Therefore, there is an invisible contract for rich people in China, but here is the fact that after this part of people is rich, they choose to transfer assets overseas and change ID as a foreigner as well. When the personal right becomes intent of the group, it illustrates the group’s prospection for the social reality anyway.

There is nothing new under the sun. Like the big immigration wave in 1990s in Hong Kong, regardless of “Li Ka Shing ran away from China” or rich people ran away, they are all a repeat indication of one same problem. Whether they should run away or the tacit should be respected or not, the history will give us an answer.