Limit to political business model prompts New World to diversify

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A Chow Tai Fook store in Causeway Bay, Hong Kong

SHINYA ABE, Nikkei staff writer

HONG KONG -- Major Hong Kong conglomerate New World Development group faces a bumpy ride as it attempts to diversify amid a toughening business environment.

Jewelry retail and property development, which form the New World group's main business, have fallen into slump in the face of China's economic slowdown, revealing the limits of a business model based on close ties with the Communist Party elite.

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