Hong Kong-based conglomerate CK Hutchison saw its shares plummet more than 6% on Friday after China strongly criticized its $22.8 billion deal with US asset manager BlackRock for the sale of its Panama Canal ports. Beijing urged the company to “think twice” about the transaction, with a state-backed commentary warning that the sale disregarded China’s national interests.
The criticism first surfaced in Ta Kung Pao, a pro-Beijing newspaper in Hong Kong, and was later republished by China’s top office for the territory’s affairs. The opinion piece accused the US of exerting pressure on CK Hutchison “through despicable means” and denounced the sale as a “profit-seeking move that sells one’s integrity for personal gains.” The article further warned that the deal would allow Washington to curb China’s shipping and trade, urging CK Hutchison to reconsider “what position and side they should be on.”
The market reacted swiftly to Beijing’s discontent. While CK Hutchison’s shares had surged more than 20% when the deal was first announced last week, Friday’s decline reflected investor uncertainty over potential repercussions in China. Dan Baker, a senior equity analyst at Morningstar, noted that the sharp fall could be an “overreaction” but acknowledged concerns over the company’s remaining assets in China. In 2023, nearly 14% of CK Hutchison’s revenues came from mainland China and Hong Kong, while about 50% originated from the UK and Europe.
The deal, which includes the sale of 43 ports globally—including two key locations at either end of the Panama Canal—was negotiated within days of Donald Trump’s return to the White House. Trump had previously declared in his inaugural address that “China is operating the Panama Canal… and we’re taking it back.” The Financial Times reported that BlackRock CEO Larry Fink personally briefed senior officials in the Trump administration, including the president and Secretary of State Marco Rubio, to secure their backing for the takeover.
Despite the growing controversy, CK Hutchison has yet to issue a statement in response to Beijing’s warning. The involvement of the company’s billionaire founder Li Ka-shing, who retired as chairman in 2018 but remains a senior adviser, has added another layer of intrigue to the high-stakes deal. With China making its opposition clear and geopolitical tensions mounting, the fate of the transaction—and its impact on CK Hutchison’s future operations—remains uncertain.
