According to an article published in the Wall Street Journal the issue is Mr Li-Ka Shing trying to cash-in his Hong Kong's utilities:
"Li-Ka Shing, Asia's richest man according to Forbes.His empire today stretches from ports to grocery stores. He's now taking his Hong Kong utilities business public—before the Federal Reserve starts winding down its bond purchases soon.
"Li-Ka Shing, Asia's richest man according to Forbes.His empire today stretches from ports to grocery stores. He's now taking his Hong Kong utilities business public—before the Federal Reserve starts winding down its bond purchases soon.
Mr. Li-controlled Power Assets Holdings, which runs electricity operations in Hong Kong, Europe and Australia, will spin off up to 49% of its Hong Kong unit. It may sell shares by the end of the year, though pricing and other details aren't out yet. The company says the listing is to gain "financial strength" so it can look for assets abroad.
Timing matters, though, and Mr. Li may be striking while the iron's still hot.
When interest rates are low, utilities stocks tend to do well thanks to their steady profits and high dividends. But if the Fed pushes rates upward, valuations could cool. Power Assets used to trade at 16.5 times forward earnings before Mr. Bernanke's whispers in late May. It's now at 14 times, but that's still rich compared with a 15-year average of 11.7, according to FactSet. Mr. Li has a history of cashing out of richly valued businesses and deploying the cash into bargain bets".
