Case Title Hopewell Holdings Limited
Case Author(s) Rudy Law John Luk Geoffrey Lieu Richard L. Priem Scott Scarborough
University Hong Kong Polytechnic University & the University of Texas at Arlington
Abstract HHL was listed on Hong Kong Stock Exchange in 1972. During the first twelve years, chairperson and managing director Sir Gordon Wu focused on property development in the local market. In the early 1980s, Wu saw great potential in the infrastructure development markets of the Asia-Pacific region's developing economies. He left the highly profitable property development market in Hong Kong and, over the next twelve years, led HHL to undertake highway and electricity-generation projects throughout the Asia-Pacific region. HHL undertook these projects on a Build-Operate-Transfer (BOT) basis. Many impatient shareholders and financial analysts were critical of the HHL's declining economic condition. In October 1997, Wu was forced to make provisions for the potential loss of HK$5.133 billion resulting from HHL's investment in Bangkok Elevated Road and Train System, a project that started in late 1990. There were threats from the Thai authorities to terminate the project and new negotiations would have to be conducted with the new, untested cabinet that was formed after the former Prime Minister was toppled because of the currency crisis. The case deals with the difficulties in undertaking infrastructure development projects in developing countries and in maintaining corporate-government relationships. This case was awarded the First Prize in the 1999 East Asian Case Competition sponsored by the Center for Asian Business at Loyola Marymount University. *Abstract reprinted with the permission of the World Scientific Publishing Company*
Available In Asian Case Research Journal, Volume 5, Issue 1, June 2001
Publisher World Scientific Publishing Co. Pte. Ltd.
Publisher Case No.
Distributor(s) World Scientific Publishing Co. Pte. Ltd. National University of Singapore
Pub/Rev Date 2001
ISBN
Case Length 26 pgs
Teaching Note No
Pub TN Ref No.
Pages (TN)
Issues Economics, international business, strategy
Organisation(s) Hopewell Holdings Limited (HHL)
Countries Hong Kong
Industry Construction - Building Materials & Equipment
Period Covered 1980s-1990s
Level Undergraduate/Postgraduate
Links of Interest Hopewell Holdings Limited's website















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