Billionaire Hong Kong builders raise cash for real estate purchases

Billionaires including Li Ka-shing and Robert Ng have cut debt at their Hong Kong developers to near-record lows in preparation to buy land as prices fall, a signal the city's real estate gains may be coming to an end.

Cheung Kong Holdings Ltd brought its net debt-to-equity ratio down to 1.3 percent as of June 30, the lowest since at least 1991, while Henderson Land Development Co's is at the lowest since 2007, according to data compiled by Bloomberg. Sino Land Co has HK$29.7 billion ($3.8 billion) available for land acquisitions after boosting its net cash position, according to BNP Paribas SA.

Developers, whose debt levels are now at their lowest in two decades, are on track to sell a record HK$150 billion of new homes this year, reducing inventories and boosting cash reserves to help replenish land holdings after average prices fell 34 percent from last year. Prices may extend declines as Hong Kong's government, which controls supply, releases more sites for sale to ease a housing shortage, according to CLSA Ltd.