Beijing halts CK Hutchinson deals with Chinese state-owned companies
Press Hub UCapital
Share:
The Chinese government issued a directive last week requiring state-owned enterprises to pause the signing of new contracts with companies linked to Li Ka-shing, the founder of the CK Hutchinson conglomerate, and his family.
This decision comes following ongoing negotiations between CK Hutchinson and a consortium led by BlackRock, which involves a $19 billion deal for the transfer, under the U.S. company, of two ports in the Panama Canal and other global assets.
The Chinese government has made no secret of its opposition to the deal, particularly through the Hong Kong-based newspaper Ta Kung Pao, which often reflects Beijing’s views. Not coincidentally, the publication had previously released critical articles about the CK Hutchinson-BlackRock agreement, which were later shared by the Hong Kong and Macau Affairs Office on its official website.
Chinese regulatory authorities are investigating the Li family’s investments in China to have a better understanding of their nature and scope. Furthermore, Reuters reports that Chinese regulators are also beginning to investigate the deal itself.
This decision comes following ongoing negotiations between CK Hutchinson and a consortium led by BlackRock, which involves a $19 billion deal for the transfer, under the U.S. company, of two ports in the Panama Canal and other global assets.
The Chinese government has made no secret of its opposition to the deal, particularly through the Hong Kong-based newspaper Ta Kung Pao, which often reflects Beijing’s views. Not coincidentally, the publication had previously released critical articles about the CK Hutchinson-BlackRock agreement, which were later shared by the Hong Kong and Macau Affairs Office on its official website.
Chinese regulatory authorities are investigating the Li family’s investments in China to have a better understanding of their nature and scope. Furthermore, Reuters reports that Chinese regulators are also beginning to investigate the deal itself.