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Hong Kong politics
Hong KongPolitics

Hutchison’s Panama ports deal must comply with the law: Hong Kong’s John Lee

Beijing conducting major review of port and shipping assets held by private mainland and local businesses, source says

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Chief Executive John Lee has said concerns arising from the sale of Panama Canal ports by tycoon Li Ka-shing’s CK Hutchison Holdings deserve “serious attention”. Photo: Elson Li
Jeffie Lam,William Zheng,Natalie WongandHarvey Kong

Concerns among residents sparked by CK Hutchison Holdings’ Panama ports deal deserve “serious attention”, Hong Kong’s leader said on Tuesday, as he made clear that all transactions have to abide by the city’s laws.

Hours after Chief Executive John Lee Ka-chiu spoke on the sale by the Li Ka-shing company of all its port operations except for those in China and lashed out against foreign governments’ “abusive use of coercion” in trade relations, the foreign ministry in Beijing underscored the same stance.

The ministry’s spokeswoman stated the country’s firm opposition to “economic coercion and bullying” when asked about an investigation mainland Chinese authorities were reportedly carrying out on the deal.

Shares of the Hong Kong conglomerate fell by 2.79 per cent on Tuesday, closing at HK$45.25 (US$5.82), while those of CK Infrastructure declined by 2.9 per cent. Both companies have cancelled their post-2024 results briefings for analysts scheduled for this week.

Hutchison surprised markets earlier this month by announcing the ports sale to a group led by US investment firm BlackRock in a deal worth US$23 billion, with the Hong Kong company set to receive US$19 billion in cash.

Two Beijing offices overseeing Hong Kong’s affairs have since posted scathing commentaries twice on their websites criticising the deal, moves seen as an indirect way for the central government to pressure the company into reconsidering the sale.
The deal by tycoon Li Ka-shing’s company will give BlackRock control of 43 ports across 23 countries. Photo: Sam Tsang
The deal by tycoon Li Ka-shing’s company will give BlackRock control of 43 ports across 23 countries. Photo: Sam Tsang
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