HONG KONG : Shares of Hong Kong’s New World Development are set to open 16 per cent higher on Friday after the resignation of Adrian Cheng, the third-generation scion of the firm’s founding family, who has been replaced by the company’s chief operating officer.

It is uncommon for an outsider to lead the business of a Hong Kong tycoon family, but analysts said changing corporate culture by bringing in professional management could be good for a firm that posted the first annual loss in two decades.

New World on Thursday reported a net loss of HK$19.7 billion ($2.53 billion) for the financial year ending June.

The major developer in the city has the highest debt among Hong Kong peers, and it vowed to keep capital expenditure below HK$15 billion in the 2025 financial year, and dispose of non-core assets worth HK$13 billion.

The company’s shares were suspended from trading on Thursday, pending the release of the management changes.

The stock was set to open at HK$9.5.