Li Ka-shing created a miracle in the Hong Kong real estate market, but quite a few years ago, he had already foreseen the weaknesses of the property bubble. In an exclusive interview with Yazhou Zhoukan, Li Ka-shing, pointed out that at present foreign investors account for less than 5% of the local real estate market, and that for Hong Kong to earn more foreign currency, it must diversify and develop high tech and other value-added industries. He said that as we enter the new millenium, Hong Kong must overcome its obsession with property.

Li believes that the financial crisis has sent Hong Kong a very clear signal -- the high land price policy has reached the end of the road, and that it is time for a re-think. He commented that some property developers only hope that profits from property would go on indefinitely, but that was very narrow minded and would only impede Hong Kong's future development. The Government's support for the Cyberport and other high tech projects means that it understands the need to diversify, and to create new opportunities for Hong Kong. Li said, "Pain is unavoidable as the economy undergoes transformation. But we must support the Government's policies and continue to develop businesses which we have the capability to handle and have established a good foundation on which to work."

After the Asian financial crisis, Hong Kong is faced with the task of reinventing itself. The Government is promoting projects such as the Cyberport, International Chinese Medicine Centre, and international cruise terminals for Hong Kong's future development. Li has no doubt that the Government's policies will benefit Hong Kong in the long run.

Long before the Asian financial crisis, Hong Kong's property business was booming and the prices were escalating at a very fast pace. The economy seemed to be going strong, but the situation was actually like a few brothers playing mahjong against each other -- winnings and losses were all kept within the family. Li took steps to diversify and globalize his business quite a long time ago. He now has investments in 24 countries, employing a total of over 80,000 people. Businesses that Li's group are involved in include hotels, container terminals, retailing and manufacturing, telecommunications, infrastructure and energy. Li believes that for Hong Kong's economy to restart after the financial crisis, it must look beyond property to create more value-added industries. He hopes that one day, Hong Kong can earn its foreign currency from industries such as technology, service and tourism.