Beijing disappointed by Panama Canal deal concerning investors
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The Chinese government has expressed its views regarding the Panama Canal deal by Hong Kong-based CK Hutchinson to the American multinational BlackRock. As reported by The Guardian, China’s Hong Kong and Macau Affairs Office – the Beijing government body responsible for policies regarding Hong Kong – shared an editorial on its website, published by the "Ta Kung Pao" newspaper, which strongly criticizes the dealand claims it goes against China’s national interests. The involvement of the United States is also criticized, with accusations that the U.S. exerted pressure to ensure the deal went through.
The agreement between CK Hutchinson and BlackRock entails control – by a consortium led by U.S. asset management company – of the ports of Balboa and Cristóbal until 2047, as well as 43 ports across 23 countries. However, the two companies are still in an exclusive 145-day negotiation phase. After the publication of an article by the Chinese government body, investors are concerned that Beijing’s lack of support could stop the deal. As a result, CK Hutchinson’s shares dropped by 6.4% at the close of the Hong Kong stock exchange.
The agreement between CK Hutchinson and BlackRock entails control – by a consortium led by U.S. asset management company – of the ports of Balboa and Cristóbal until 2047, as well as 43 ports across 23 countries. However, the two companies are still in an exclusive 145-day negotiation phase. After the publication of an article by the Chinese government body, investors are concerned that Beijing’s lack of support could stop the deal. As a result, CK Hutchinson’s shares dropped by 6.4% at the close of the Hong Kong stock exchange.