Eric Ma to exit as CEO of New World Development after just two months in role

29th November 2024 – (Hong Kong) Newly appointed Chief Executive Officer of New World Development Co., Eric Ma is expected to resign, according to sources close to the situation. The Hong Kong-based property giant plans to formally announce Ma’s departure as early as Friday afternoon. This development marks another chapter in the ongoing leadership turmoil that has gripped the company.

The departure of Ma, a former government official who oversaw land development matters, adds a layer of uncertainty to New World’s future. Ma stepped into the role of CEO after Adrian Cheng, the eldest son of the Cheng family and a pivotal figure in the company, resigned in late September following a substantial financial downturn. Adrian Cheng’s departure came in the wake of the company’s first reported loss in twenty years, a staggering HK$19.7 billion for the financial year ending in June. This loss reflects broader challenges within the Chinese property market, which is currently experiencing one of its most severe slumps, compounded by an economic slowdown across the region.

Eric Ma was initially appointed as Chief Operating Officer in January, before quickly ascending to the CEO position, filling the void left by Adrian Cheng. His tenure was seen as a stabilizing effort aimed at navigating through the troubled waters brought about by the economic pressures on the property sector. However, with his impending exit, the question of leadership remains open, with no clear successor announced.

The company is also undergoing strategic shifts. New World is reportedly planning to sell its operations that manage K11 properties— a brand developed by Adrian Cheng that blends art with commercial spaces, including shopping malls and offices. The sale is expected to go to a company owned by Adrian Cheng himself, indicating a strategic realignment but also raising questions about the future direction of New World’s asset management.

In an interview last year, Henry Cheng, the patriarch of the Cheng family, expressed his ongoing search for a suitable successor to lead the family’s sprawling business empire. He mentioned the possibility of looking beyond the family to bring in outside talent, highlighting the strategic challenges faced by family-led conglomerates in maintaining leadership continuity. Henry has delegated significant responsibilities to his other children: Sonia, his daughter; Brian, his second son; and Christopher, his third son, in various capacities across the business group.