The Cheng family stands as one of Hong Kong’s most influential and affluent clans, with a vast property portfolio and a thriving jewelry enterprise that has become a household name across Asia. Their net worth, as estimated by Bloomberg, reached $22.7 billion in March before declining to $17.7 billion by September. The family’s company, New World Development, oversees an impressive 41.5 million square feet of property in Hong Kong, surpassing the size of Central Park in New York City.
The family’s wealth originated with Cheng Yu-Tung, who began as an apprentice at a Macau gold shop called Chow Tai Fook during World War II. After marrying the shop owner’s daughter, he expanded the business to Hong Kong, capitalizing on the city’s growing prosperity. In the 1970s, Cheng invested heavily in real estate, establishing New World Development, which now encompasses department stores, hotels, and infrastructure across Hong Kong, mainland China, and the United States.
Following Cheng Yu-Tung’s passing in 2016, his elder son Henry assumed control of the family’s jewelry and real estate empire. Now, at 77, Henry is contemplating succession, bringing his two eldest children, Adrian and Sonia, into the spotlight as potential heirs to the family fortune.
Sonia Cheng, 43, heads the Rosewood Hotel Group, which has expanded from 19 properties to 51 hotels and resorts under her leadership, with plans for 24 more. The group’s portfolio includes the iconic Carlyle Hotel in New York City, a favorite among celebrities attending the Met Gala. Sonia’s approach focuses on attracting younger travelers by offering tailored experiences that reflect local cultures.
Adrian Cheng, 44, spearheads K11, a brand of shopping malls and office buildings that uniquely integrate art and design. His flagship project, K11 Musea, is a $2.6 billion mall in Hong Kong featuring numerous art installations. Adrian has also made significant investments in various sectors through his fund, C Ventures, which reported assets exceeding $700 million in July.
Despite the siblings’ successes, their father Henry recently stirred speculation about succession plans with cryptic remarks in a television interview. He suggested that identifying a suitable successor was challenging and even hinted at the possibility of hiring from outside the family. This statement has cast doubt on what was long presumed to be a straightforward transition of power to Adrian.
Adding to the uncertainty, Henry recently appointed his younger son, Brian, to a top role in the company’s construction and infrastructure division. This move has positioned all three siblings to lead distinct sectors of the Cheng empire, with the fourth child, Christopher, holding an executive directorship.
Amidst succession rumors, the Cheng family faces significant challenges in Hong Kong’s struggling property market. The city has experienced a downturn due to political unrest, a weakened post-COVID economy, and decreased demand from mainland Chinese buyers. New World Development reported an expected loss of up to $2.6 billion for the 2023 financial year, its first in two decades, reflecting the pressures on one of Hong Kong’s most indebted property developers.
Despite these challenges, Adrian Cheng remains optimistic about Hong Kong’s future as a financial hub. He has launched initiatives to promote the city to wealthy individuals and expressed confidence in its potential to become a leading center for family office wealth management.
As the Cheng family navigates these complex dynamics of succession and market challenges, their story continues to captivate Hong Kong’s business world, with observers keenly watching for signs of the empire’s future direction.