The stock price of New World Development in Hong Kong increases by 23% following the resignation of its CEO.

• The stock price of New World Development in Hong Kong increased by up to 23% after trading resumed following the departure of Adrian Cheng, a member of the founding family.
• The company halted trading on Thursday following the departure of Cheng.

The departure of Adrian Cheng from New World Development led to a rise in the company's shares in Hong Kong.

On Friday, after trading resumed, the major development company's Hong Kong listed shares experienced a 23% increase in value.

The company paused trading on Thursday "in anticipation of announcements" after Cheng resigned to focus on "public duties and personal obligations."

The company announced that Eric Ma Siu-Cheung, who was previously the Chief Operating Officer, has been appointed as the new CEO, marking a rare move for an outsider to lead the family business in Hong Kong.

The developer reported that it anticipates recording a loss of HK $1 billion ($125 million) to HK $2 billion ($250 million) for the financial year ended in June, due to declining sales, investment losses, and impairment charges.

The ongoing property pains in Hong Kong and mainland China are causing problems for New World, as indicated by the developer's statements about their high debt levels.

Corporate governance is crucial, as seen by the fact that having preferred sons or daughters, mostly sons, among tycoons is not the best way to run companies, according to Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis.

She stated that tycoons in Asia, particularly those in Hong Kong, have come to understand that managing tough markets is challenging, and success can only be achieved with exceptional management.

The stimulus measures originating from China are also contributing to the surge in New World's shares, according to the economist.

The rally in Chinese equities is part of a broader rally in Hong Kong and follows the stimulus measures announced by China's central bank on Tuesday.

On Thursday, China's top leaders declared that authorities must take action to stop the decline in the real estate market. A statement from their meeting revealed that leaders called for increased fiscal and monetary policy support to address various topics, including employment and the ageing population.