The family’s empire stretches across sectors, including jewelry, real estate, energy, transport, and casinos, and has immense influence in the city’s business scene.

Their property flagship, New World Development, manages more than 41 million square feet (3.8 million square meters) of real estate in Hong Kong, according to Business Insider. They also own Chow Tai Fook, a widely recognized jewelry brand in Asia.

Forbes named them Hong Kong’s third-richest family in February.

How the empire was built

The family’s business began with Cheng Yu Tung, who started as an apprentice at a gold shop in Macau called Chow Tai Fook around the time of the World War II.

After marrying the shop owner’s daughter in 1943, he moved to Hong Kong and opened the brand’s first branch. His business, known for its 24-karat gold jewelry, expanded along with the city’s rise as a financial hub after the war.

Cheng expanded into real estate in the 1970s and founded New World Development, which would go on to become one of Hong Kong’s four largest developers.

When he passed away in 2016 with a net worth of about $14.6 billion, his eldest son Henry Cheng inherited the family’s businesses.

The third-generation heirs

Now approaching 80, Henry has gradually handed over the reins of the family’s key businesses to his children, marking a transition to the third generation, as reported by Bloomberg.

His daughter, Sonia Cheng, serves as co-vice chairman of Chow Tai Fook Jewellery Group and CEO of Rosewood Hotel Group, the family’s hotel business. Under her leadership, Rosewood has grown into a global name in luxury hospitality, encompassing four brands: Rosewood Hotels & Resorts, New World Hotels & Resorts, wellness concept Asaya, and private club Carlyle & Co.

His younger sons, Brian and Christopher Cheng, are co-CEOs at infrastructure arm NWS Holdings and private investment vehicle Chow Tai Fook Enterprises, respectively.

Then there is the eldest son, Adrian Cheng, who up until recently had been seen as the heir apparent to the family’s fortune.

Regarded as “bright” and “ambitious,” he was reportedly “a favourite” of his late grandfather, as per the Financial Times. He earned a bachelor of arts from Harvard and worked at UBS and Goldman Sachs before joining the family business in 2007.

The following year, he launched K11, his brand of malls and office towers in Hong Kong and China that integrates art and culture into the retail experience.

He was appointed CEO of the family’s flagship New World Development in 2020 when the company’s market capitalization exceeded HK$90 billion (US$11.5 billion) and was buoyed by China’s economic boom.

The succession saga

Henry Cheng Kar-shun (right), chairman of New World Development, NWS Holdings and Taifook Securities, and his son Adrian Cheng Chi-kong attend a press conference for the 2014 Annual Results Announcement for New World Group in Hong Kong, China, Feb. 27, 2015. Photo by Reuters

Adrian pushed for rapid expansion, investing heavily in residential and commercial projects across Hong Kong and mainland China. Among his most high-profile ventures was K11 Musea—a sprawling US$2.6 billion complex on Victoria Harbour that blends luxury retail, art, and hospitality in a single landmark destination.

His ambition, however, soon ran into headwinds. As Hong Kong’s real estate market slumped, New World’s shares declined and investor confidence faltered. Home prices in the city have dropped 28% from their 2021 peak and remain near the lowest levels since 2016.

The slump has been exacerbated by years of strict Covid-19 restrictions that triggered a population outflow, and by surging U.S. interest rates that pushed up borrowing costs in the city due to its currency’s peg to the dollar.

As the developer’s fortunes turned, some within the Cheng family began to question whether Adrian was focusing too much on cultural pursuits, and his approach drew scrutiny as the company’s debt climbed amid rising interest rates.

Then, in a rare television interview in late 2023, Henry made a shocking revelation that he was still searching for a suitable successor though Adrian had been heading New World for several years by that point.

“Finding a successor isn’t easy. I’d be overjoyed if we manage to find one,” he said in Cantonese, as quoted by Bloomberg.

He also suggested he might even look for one beyond the family, according to the South China Morning Post.

Less than a year later, Adrian stepped down as CEO in September 2024, shortly after New World posted a record loss of HK$19.7 billion for the fiscal year ending in June. It was the developer’s first annual loss since 2004 when the Sars epidemic briefly derailed the property market.

The move fueled speculation about a family feud over succession. However, Conroy Cheng, a top executive of Chow Tai Fook and Henry’s nephew, denied such rumors and Adrian himself maintained that the decision was entirely his own.

Following his departure, chief operating officer Eric Ma briefly took the helm, only to be succeeded two months later by Echo Huang, who had previously served as the CEO of New World’s mainland subsidiary.

But the developer remains embattled. It was removed from the benchmark Hang Seng Index last December and, by January, its stock had sunk to the lowest level since its 1972 debut.

The rout took a heavy toll on the Chengs’ fortune, which plunged by $2.6 billion in 2024, the biggest drop in dollar terms among those featured in Forbes’ 2025 Hong Kong rich list.

“Evidently the influence of a younger hip third-generation tycoon-scion is not the panacea for New World and the ongoing issues in the Hong Kong and China property space,” remarked David Blennerhassett, an analyst at Quiddity Advisors.

Burdened with HK$124 billion in debt, the developer’s financial position has become increasingly fragile. Its net gearing ratio hit 55% as of last June, far higher than the other big four developers. The ratio was 22% for Henderson Land, controlled by the late Lee Shau Kee’s family, and 18% for Sun Hung Kai Properties, run by the Kwok family.

New World said in January that it had refinanced HK$17.8 billion in loans since July and dismissed reports about a debt restructuring, insisting that it “continues to carry out its businesses as usual.”

Adrian’s fall underscores the struggles faced by many third-generation heirs and the challenges of succession in family-run conglomerates.

Marleen Dieleman, professor of family business at IMD Business School in Singapore, noted: “Third-generation successors of large family empires are typically under tremendous pressure.

“In particular, if they face economic headwinds, high expectations from family members and significant visibility in the business community.”