‘King of Liquidation’ Warns of More Hong Kong Restructurings in 2026

Hong Kong is likely to see more restructurings and liquidations in 2026 across sectors including real estate, restaurants and retail as a weak economy and shifting consumer habits continue to squeeze firms, veteran liquidator Derek Lai said.

Known as the “King of Liquidation”, Lai recently left Deloitte after 36 years to join EY as senior partner and Asia-Pacific turnaround and restructuring leader, with plans to expand EY’s team to 130 from 80 next year.

Companies Registry data show dissolutions rose to 116,073 in 2024 from 94,002 in 2023 and 88,232 in 2022, with 84,549 cases recorded in the first 10 months of 2025.

Lai cited a property downturn, work-from-home trends, online shopping and Hongkongers dining across the border, though a stock rally has eased refinancing pressure for some companies.