Li Ka-shing's Magic Trick: Unlocking Billions From Undervalued Assets

There has been much speculation about the reasons behind Hong Kong tycoon Li Ka-shing’s reorganization of the two pillars of his family business empire, Cheung Kong (Holdings) Ltd. and Hutchison Whampoa Ltd. Media have shared many juicy conspiracy theories. No matter what rumors suggest, from an academic perspective these moves make sense and indicate a very rational decision by a shrewd, experienced businessman.