In Hong Kong, Chau expects that falling interest rates will help stocks as a whole, especially such blue-chip property developers as Cheung Kong and SunHungKai Properties, both Chau holdings, since lower borrowing costs should stimulate demand for property. (Fair disclosure: Through cef Holdings, Cheung Kong is an investor in Chau's employer, TAL CEF Global Asset Management).
The tycoons' case will be weakened by the surprise arrest on March 29th, for alleged graft, of two major property developers, reported to be Raymond and Thomas Kwok of SunHungKai Properties, as well as a former high government official, reported to be Rafael Hui.