Kadoorie Is Hong Kong’s Latest Billionaire to Back Security Law

(Bloomberg) -- Michael Kadoorie, who sits atop one of Hong Kong's oldest fortunes, joined a growing chorus of tycoons voicing support for a controversial national security law drafted by China's central government for the city.

“We are confident that through the enactment of the appropriate legislation in Hong Kong and with the resilience of the Hong Kong people, the city will continue to grow and prosper for many more decades to come,” Kadoorie said in an emailed statement. “During this period of uncertainty, it is crucial for the government to explain to the public the importance of safeguarding national security and gain support of the proposed legislation.”

Kadoorie's group is lining up behind legislation that has provoked street protests by pro-democracy supporters, who say the law gives Beijing too much power. Business leaders including the city's richest tycoon, Li Ka-shing, have defended Beijing's move, while HSBC Holdings Plc backed the law after coming under criticism from the city's former chief executive, Leung Chun-ying, for initially remaining silent. Critics of the law including media mogul Jimmy Lai have called out the tycoons for kowtowing to Beijing.

The majority of Kadoorie's $10 billion fortune is derived from a stake in CLP Holdings Ltd., the biggest electricity producer in Hong Kong. He also owns a stake in Hongkong and Shanghai Hotels Ltd., which operates Peninsula Hotels in Asia, Europe and the U.S.

Li Ka-shing, founder of retail, telecommunications and ports conglomerate CK Hutchison Holdings Ltd., last month sent statements to pro-Beijing papers in which he defended China's right to address its national security concerns. His son Victor Li, who took over his business empire in 2018, also issued a statement expressing hope that the new law can help the city stabilize and recover.

Swire Pacific Ltd., the parent company of Hong Kong-based airline Cathay Pacific Airways Ltd., and Sun Hung Kai Properties Ltd., the city's largest developer, are also among top companies that have voiced support for the law.

“My family first came to this wonderful city 140 years ago and it has been disheartening to see the lack of harmony that has affected the entire community,” said Kadoorie, the son of industrialist Lawrence Kadoorie, who was named to the British House of Lords. “The rule of law as well as peace and order are critical for maintaining Hong Kong's status as an international financial hub and a tourism and logistics centre.”

Kadoorie added that all countries have a sovereign right and obligation to ensure their national security and that only a “stable social and political environment” can continue to make the city an attractive place for investment and business.

“Through the years, Hong Kong has seen many challenges but I have a strong belief in our future,” Kadoorie said. “My father once said to me that Hong Kong is like a rubber ball: the further it drops the higher it bounces back -- a testimony to the resilience, fortitude and ‘can do spirit' of the people of Hong Kong.”