By Li Hongmei

The recent decision by Asia's richest man, Li Ka-shing, to spin off his Hong Kong electricity business has added to the rumor that the tycoon is pulling out assets from Hong Kong and the mainland.

Li, the 85-year-old chairman of Cheung Kong Holdings and Hutchison Whampoa, announced that Power Assets Holdings - which he controls - will spin-off subsidiary Hongkong Electric Company in a joint listing of shared staple units valued at an estimated 30.5 billion yuan (US$5 billion). Power Assets will hold less than 50% but more than 30% of HK Electric's shares following the deal.

HK Electric, which started operations in 1890, provides electricity to about 568,000 customers on Hong Kong and Lamma islands.

Li declared as recently as Sept 17 that he loves Hong Kong and would never leave the territory.

A spokesperson for Li also said that the decision to spin-off HK Electric was a pure commercial decision and should not be seen as Li withdrawing capital from Hong Kong.