A pro-Beijing newspaper in Hong Kong has intensified its critique of CK Hutchison's agreement to sell its Panama ports to a consortium led by BlackRock. The deal, which was expected to be finalized by April 2, has been delayed, according to sources. This development places the Hong Kong-based conglomerate at the center of the ongoing China-U.S. trade conflict, raising concerns about Hong Kong's economic standing amid geopolitical tensions.
CK Hutchison's shares have experienced a 12.9% decline since March 13, following initial criticism from state media. The shares reached an intraday low of HK$43.05 (approximately $5.55), resulting in a market value loss of HK$24.3 billion (approximately $3.13 billion). The company's current valuation stands at HK$167.6 billion (approximately $21.6 billion). On Monday, the shares dropped by as much as 4.7% but later recovered slightly to a 3.3% decrease in early afternoon trading. Meanwhile, Hong Kong's Hang Seng Index was down by 1.7%.
Despite the delay, sources indicate that the sale has not been canceled. CK Hutchison faces mounting criticism from China regarding its decision to sell a majority of its $22.8 billion ports business to the U.S.-led group, which is expected to bring in over $19 billion in cash for the firm.
The pro-Beijing publication Ta Kung Pao featured a full page of articles on Monday, including remarks from Hong Kong politicians and Chinese legal experts urging CK Hutchison to reconsider the sale. They also voiced support for Chinese regulators' decision to review the transaction. A senior partner from Kangda Law Firm suggested that China could assess potential security risks to its port system data under its national security and data security laws.
The newspaper has published multiple commentaries portraying the deal as a betrayal of China, with one editorial suggesting that the sale might breach Hong Kong's national security laws, specifically Article 23.
Chinese authorities have expressed disapproval of the sale, while U.S. President Donald Trump has praised it, citing a desire to regain control over the strategic waterway. China's market regulator announced an antitrust review of the Panama port deal to ensure fair competition and protect public interest.
CK Hutchison operates two of the five ports near the Panama Canal, which accounts for approximately 3% of global sea-borne trade. The company was initially awarded the concession to manage the ports in 1998, with an extension granted in 2021 for another 25 years.
Source: Reuters