takeover plan gone awry and oneupped the Jardine Group, the symbol of British rule in Hong Kong.

Nine years later, the billionaire property developer is again setting his sights on Jardine, whose origins date back to Britain's arrival in the territory in the 1840s.

This time, Li, an adviser to China and a folk hero among Hong Kong Chinese, says he is just a passive investor in Jardine and its property arm, Hongkong Land Holdings Ltd.

Whatever Li's intentions, the disclosure this week that he owns about three percent of Hongkong Land, one of the territory's largest landlords, was enough to add $2.7 billion to that company's market value in two days.

`Boss of big bosses' sets sights on Jardine It also underscored the influence of the 69-year-old executive in a Hong Kong newly returned to Chinese rule.

"Clearly a guy who has that amount of resources behind him is going to be a big player in the future,'' said Simon Murray, who spent 11 years running one of Li's main companies, Hutchison Whampoa Ltd.

Li's public backing may soothe the relationship between China and Jardine, who have viewed each other with mutual distrust since the British trading company ran opium in the 19th century. Since Li disclosed his stake, Hongkong Land stock rose more than 20 percent. As Li prepares to hand his $83 billion empire to his sons, Victor and Richard, that kind of response shows he is still a man to watch. In Hong Kong, he is a taipan's taipan -- the big boss of big bosses.

Li, the chairman of Hutchison and Cheung Kong (Holdings) Ltd., already owns a piece of almost every business in Hong Kong, from property to telecommunications to ports. Locals like to say that for every dollar spent in the territory, five cents goes to Li Ka-shing.

The executive's ability to sway what was once the bulwark of British colonial rule shows his influence in Hong Kong is unlikely to fade when he passes the reins -- publicly at least -- to his sons.

For Jardine, that may be hard to swallow. Back in 1988, Li demanded that Jardine Chairman Simon Keswick buy back a stake in Hongkong Land or risk a takeover fight. Luckily for Li and his partners, Keswick did just that and saved them from a loss on their holdings.

Through executives at Cheung Kong, Li said this week the investments in Jardine companies are made on a "purely friendly basis'' with "no other intention.'' Whether that's true remains to be seen.

"There's no way to guess what K.S. Li plans to do with the investments,'' said Vincent Luk, an analyst at HSBC James Capel Asia Ltd. "Everyone knows K.S. Li is good at making investments work and that's good enough for some investors.'' That view was borne out by shares in Hongkong Land and Jardine Matheson Holdings Ltd., in which Li also disclosed a three percent stake.

Jardine Matheson rose about 11 percent one day this week and 2.5 percent the next. Hongkong Land bolted by as much as 40 percent, its biggest two-day rally ever. That values Li's stakes in the two companies -- both traded in Singapore -- at more than $480 million.

In Hong Kong, Li's flagship companies paced gains in the local stock market rally. Cheung Kong surged as much as 5.1 percent to HK$92 and Hutchison gained as much as 4.4 percent to HK$82.25.

At the heart of that rally is Li's influence with China.

A trip to Beijing in 1978 won Li an alliance with Deng Xiaoping, the man who opened China's markets to the West.

Li later became an adviser to Beijing and helped oversee the Hong Kong's transition to Chinese rule. China's new leader, Jiang Zemin, stayed at Li's Harbour View Hotel during the handover ceremonies.

To many, the five-foot, six-inch Li, a native of Shantou, in southern China, has an obvious formula for success.

"He's the guy who says politics and business go together and he's absolutely right -- businessmen cannot stay out of politics,'' said Murray. Li's shareholders agree. With good reason: Cheung Kong's stock almost quadrupled in the past five years. Hutchison stock rose more than five-fold.

It wasn't always that way.

In 1940, a 12-year-old Li fled China to escape invading Japanese troops. He spent the next nine years sweeping factory floors in Hong Kong and selling plastic watch bands and belts. Then, with the help of friends and family, Li took a stake in a company that made plastic combs, soap dishes and toys. He was 21.

From there, Li started to invest in Hong Kong property. By 1979, he became the first Chinese executive to truly challenge the role of British "hongs'' such a Jardine by buying Hutchison.

In an interview in June, Li conceded that doing business with China is no easy task, even for him. "If you want to make a quick profit, no way,'' Li said.

Jardine shareholders, of course, might disagree.