Shares in CK Hutchison Holdings Ltd., owned by Hong Kong billionaire Li Ka-shing, experienced a notable rally following the participation of one of Li’s sons at a significant meeting in Beijing. This event occurred amidst the ongoing controversy regarding the company’s sale of its port assets in Panama.
Richard Li, founder of Pacific Century Group, was invited to attend the China Development Forum organized by the State Council. At this two-day event, he engaged with prominent Chinese leaders, including Premier Li Qiang, and global executives such as Tim Cook from Apple Inc., Albert Bourla from Pfizer Inc., and Amin Nasser from Saudi Aramco.
Despite the fact that Richard Li manages his own business ventures and is not associated with CK Hutchison, the market perceived his involvement as a positive indicator for the Li family. As a result, CK Hutchison’s shares increased by as much as 5.2% on Monday morning, marking the highest rise in over two weeks.
CK Hutchison, a key entity within Li Ka-shing’s international business portfolio, is currently navigating tensions between the U.S. and China. The company’s decision to sell 43 ports, including two in Panama, to a consortium led by BlackRock Inc. for $19 billion, has attracted criticism from Beijing. The sale, while retaining ports in Hong Kong and mainland China, was positively highlighted by former U.S. President Donald Trump as a strategic move to diminish Chinese influence over the Panama Canal. Subsequently, Chinese authorities have initiated an investigation into the transaction for potential breaches related to national security and antitrust laws.
The agreement concerning the sale of CK Hutchison’s two Panama ports is expected to be finalized by April 2. In a commentary on Friday, pro-Beijing newspaper Ta Kung Pao called on CK Hutchison to withdraw from the deal due to concerns about violating Hong Kong’s national sovereignty, security, and developmental interests. The publication criticized the company for its perceived concessions to Trump, accusations echoed by China’s top office on Hong Kong affairs, suggesting alignment with the official government stance.
Prominent Hong Kong politicians, including the city’s leader John Lee, have expressed their intent to address the sale in accordance with legal and regulatory standards.
CK Hutchison is registered in the Cayman Islands, with approximately 12% of its revenue coming from Hong Kong and mainland China. The majority of its remaining revenue is derived from Europe, Canada, and Australia.
