CK Hutchison Shares Fall As Mounting CCP Pressure Delays Panama Port Deal With BlackRock

CK Hutchison Holdings Ltd., controlled by the family of Hong Kong billionaire Li Ka-shing, saw its shares slide in Hong Kong on Monday following weekend reports that a planned deal to sell two Panama Canal ports to a BlackRock-led consortium would not be signed this week. Adding to the pressure, a pro-Beijing Hong Kong newspaper—viewed as a mouthpiece for the Chinese Communist Party—intensified its negative propaganda warfare against the proposed deal, which would effectively transfer control of the Panama ports to the United States amid the Trump administration’s push to bolster hemispheric defense across the Americas.

Shares of CK Hutchison fell nearly 5% during Hong Kong trading before closing down 3%.

The 25% gain seen earlier this month following the deal’s announcement has largely been erased, as multiple reports in recent days have highlighted mounting pressure from the CCP against CK Hutchison over the transaction: 

• BlackRock’s Panama Port Deal With CK Hutchison Won’t Be Signed Next Week

• Panama Canal Deal Derailed After Beijing Launches Antitrust Probe

• Beijing Fumes Over BlackRock’s Panama Port Deal With CK Hutchison

Definitive documentation between CK Hutchison and the BlackRock-led investor group to secure a $19 billion controlling stake in CK Hutchison’s ports, which includes 43 ports in 23 countries, along with two ports at either side of the Panama Canal (Balboa and Cristobal), was expected to be signed on Wednesday, according to the sale announcement on March 4. Yet all indications now point to no deal this week. 

“We are not surprised by the potential delay due to rising geopolitical implications, and in the meantime we believe CK Hutchison will endeavor to resolve conflicts with various stakeholders before confirming the deal on July 27,” JPMorgan analysts told clients in a note, adding, ”We won’t be surprised if that date may be extended further, if necessary.“

Earlier today, the Pro-CCP Ta Kung Pao paper unleashed its propaganda cannon, which included comments from Hong Kong politicians and Chinese lawyers urging CK Hutchison to terminate the deal. 

The newspaper told CK Hutchison to “think twice” about the deal with the Americans…

As we previously explained:

It’s crucial to understand that eliminating Chinese Communist influence from the Panama Canal is part of Trump’s master plan to strengthen hemispheric defense. This strategy also encompasses developing hardened defense layers around Canada and Greenland. It includes efforts to purge Chinese triad gangs, Mexican cartels, and other terrorist organizations from the North American financial system as the world fractures into a bipolar state. 

The potential delay in the deal due to CCP pressure on CK Hutchison will likely push the Trump administration to get more creative in finalizing the transaction. After all, for the Trump administration, this is ultimately about hemispheric defense.