Cheung Kong (Holdings): Normal Profits in a Normal Market

Amidst the hype brought about by the encouraging response to the Leighton Hill luxury residential offering, and on speculation that last Thursday’s Government land auction would also see higher prices, Cheung Kong [1] coolly declared that it had applied to the Government for the auction/tender of two prime sites from the land reserve list. The message seemed quite clear: there is an abundant supply of land for all developers and there is no need to bid up prices. After all, nobody, in…