BEIJING, Dec 8 (TMTPost) -- Chau Hoi Shuen, the founder of Horizons Venture and the partner of Hong Kong billionaire business magnate Li Ka-shing, has revealed that Li had warned her multiple times about an imminent economic downturn back in January 2021.

Chau made the comments after attending the inaugural FII Asia Summit. She said that Li had advised companies in their investment portfolio to raise money by the end of 2021, adding that the billioinaire is still actively monitoring the stock market but hasn't forecast when an economic upturn may occur.  

Since his retirement in 2018, Li, also the founder of Cheung Kong  Group, has rarely appeared in public, but his viewpoints are still valued by investors.  

Chau recalled that many seasoned colleagues were unaware of the risks, but Li repeatedly emphasized that "the storm is coming."  Thus Horizons Ventures began to asked all portfolio companies to raise new rounds of financing to expand reserve funds. About 80% of the companies heeded the advice and have capital enough for spending in next 24 to 36 months, while other companies that did not do so now have to cut their valuations.

She said that it is necessary for both individuals and governments to remember to “be cautious not be trapped” in this ever-changing world. The most important thing is to have “a curious mind and counterfactual thinking.” Chau said she learned this from her partner and mentor, who grew up in a tough environment and learned to get ready for adversity while things are good.

The Hong Kong stock market is bearish, and the Hang Seng Index is at the same level as that in 1997 when it returned to the Chinese mainland. It has been falling for four consecutive years. Chau revealed that Li did not forecast when an economic upturn will come.

 As the founder of Horizons Ventures, Chau is focusing on synthetic biology and new materials. She said at the FII summit that synthetic biotechnology and new materials will become a new driving force for the manufacturing industry. "Now people in the manufacturing industry need to think about how to put new materials into use, because it is easier for developing countries to grasp the opportunities brought by scientific and technological change, so that they will be more competitive,” she noted.