Cathay Pa­cific owner Swire faces exit from Hang Seng

The Daily Telegraph - Business - - Business - By Louis Ash­worth

ONE of Hong Kong’s most fa­mous trad­ing houses is fac­ing rel­e­ga­tion from the Hang Seng in­dex af­ter half a cen­tury as Chi­nese tech firms mus­cle in.

Swire Pa­cific’s share price has fallen 42pc this year and it is­sued a profit warn­ing in June af­ter be­ing bat­tered by the pan­demic.

The firm – which has a range of re­tail and real es­tate in­vest­ments and is the big­gest share­holder in air­line Cathay Pa­cific – was a found­ing mem­ber of the blue-chip Hang Seng, but is likely to be ejected dur­ing a reshuf­fle af­ter to­day’s close. The firm is the quoted arm of the fam­ily-owned Swire con­glom­er­ate, which has its ori­gins in a Liver­pool­based im­port-ex­port com­pany founded by John Swire in 1816.

Mer­lin Swire – the com­pany’s chair­man and great-great-great grand­son of John – re­mained res­o­lute de­spite un­veil­ing a HK$7.7bn (£750m) first-half net loss prompted by Cathay Pa­cific’s strug­gles and a slew of im­pair­ment charges as it slashed the value of as­sets.

“Whether we’re in the in­dex or not, we’re in Hong Kong. We’re not go­ing any­where,” he said. Only HSBC has per­formed worse on the in­dex this year. But the lender re­mains among the largest Hang Seng mem­bers.

Swire has a range of real es­tate in­vest­ments and is the top share­holder in Cathay Pa­cific

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.