Li Ka-shing, Asia's richest man, spent HK$289.7 million ($37 million) raising his stake in Cheung Kong (Holdings) Ltd, fueling the 9.3 percent gain in the property developer's stock over the past week.

Li, Cheung Kong's chairman and founder, bought 2.83 million shares on July 3 and July 4, at an average price of HK$102.24 per share, according to filings to Hong Kong's stock exchange. Li raised his stake to 39.88 percent from 39.76 percent.

Investors in Hong Kong and across Asia look to Li, referred to locally as "Superman," for a sense of where the Chinese city's economy is headed because his companies invest in businesses ranging from supermarkets to shopping malls and ports. Shares of Cheung Kong have gained 17 percent this year, beating the 14 percent gain in the benchmark Hang Seng Index.

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"There should be more upside to Cheung Kong, as well other local property developers, which have been undervalued," said Manfred Ho, an analyst at BNP Paribas SA. "Demand for housing should remain robust because of the strength of Hong Kong's economy, giving good support to housing prices." Ho has a "buy" rating and target price of HK$125 for Cheung Kong shares.

Li, with a fortune of $23 billion, according to Forbes magazine, has added to his Cheung Kong stake at least 21 times since March 22, when the property company announced a 29 percent jump in annual profit. Cheung Kong is Hong Kong's biggest developer by market value.

Cheung Kong's income from property sales "would remain high," Credit Suisse analysts including Clifford Lam wrote in a report last week, "even without any significant increase in prices." The Swiss bank raised its target price for the stock to HK$122 from HK$116.

Profit for Li's flagship rose to HK$18.08 billion in 2006, compared with HK$14 billion a year earlier, the company said on March 22, on higher property sales and rising contributions from unit Hutchison Whampoa Ltd. Li's stake in Cheung Kong stood at 39 percent on March 22.

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