Richard Li Sells PCCW Assets

In Aug 2000, Singapore Telecom wanted to buy HK Telecom from Cable & Wireless, however, China showed the great concern of the biggest telecommunications company in Hong Kong should not be owned by foreign investors. That was the reason why PCCW, as a Hong Kong based company, could finally acquire HK Telecom, even the assets of PCCW was not sufficient to swallow such a big company at that time. This acquisition caused PCCW to be debt-ridden and its stock price was down 96% from its 2000 peak value. Richard Li was admired by the Chinese authorities, but cursed by its stockholders.

Now, Richard Li wants to sell HK Telecom to foreign investors at a much higher price. For business point of view, to sell a product/service for a good price is out of questions. However, telecommunications business belongs to military strategic resource and China must eager to get control of this biggest telecommunications company. Even in the so-called democratic country like America, acquisition of big business such as IBM PC computer, harbours, logistic business would also be blocked, prevented by the partiament of the nation!

While Richard Li's action of selling the telecommunication business shows no responsibility to the society, just want to get rid of his notorious business, take the money out and run away. Chinese do business to those with trust and relationship. His action will definitely harm his future business with Chinese govenment and Chinese firms.