Political pressure is escalating on a plan by a group of Hong Kong to sell its ports in Panama to Blackrock, the American investor, raising questions about the future of the deal of $ 19 billion.
John Lee, Hong Kong leader, added his voice on Tuesday with the escalation of warnings from China, saying that the transaction deserves “serious attention.”
The deal between CK Hutchison, one of the most successful blocs in Hong Kong, and Blackrock, the world’s largest asset manager, investors were seen as a solution to the hot geopolitical potatoes that began to demand President Trump that the ownership of CK Hutchison for two main outlets in any of the Panama killer represented a problem in national security because it was “operated by China.” Mr. Trump praised the Blackrock deal after announcing it.
Now, this solution began to look like a problem. The stocks in CK Hutchison, which is controlled by one of the richest people in Hong Kong, Li Ka Chisigh, fell about 3 percent on Tuesday after Mr. Lee’s comments. The company canceled the presses of the press and investors that have been set for this week when it issued its last financial report. Hotchison did not respond to the requests for suspension.
China has criticized the planned port deal, which would lead to the sale of CK Hutchison most Hutchison Port Holdings, including its ports in Panama and more than 40 other world outlets. A series of comments published in Ta Kong Pau, the Hong Kong newspaper owned by the Chinese government and the Communist Party, arranged that the arrangement of Hitchcon Black Rock will allow the United States to “use political purposes and enhance its own political agenda”, in turn made Chinese and trade “subject to the United States”.
On Tuesday, Mr. Lee from Hong Kong said, “Any treatment should comply with legal and regulatory requirements.” He spoke at a weekly press conference, he said that the government “will deal with it in accordance with law and regulations.”
He did not explain, but the legal experts said, historically, the merger or acquisitions conducted by the Hong Kong companies and foreigners who do not have to search for a kind of organizational approval that Mr. Lee is likely to refer.
It is not clear what Hong Kong authorities can do, if any, to stop the deal. In contrast, Chinese companies often must ensure permission from the Ministry of Commerce, the state administration for foreign criticism and other organizers to sell assets or transfer money from the mainland of China.
However, warnings raised concerns among some in the financial community about the politicization of business in Hong Kong, a previous British colony that was returned to Beijing in 1997 under a promise that it would work with a “high degree of autonomy”. This pledge changed in 2020 when Beijing imposed the city’s national security law to crush the pro -democracy protests.
While the government of Mr. Lee has repeatedly confirmed that Hong Kong is still an open place to do business and a global financial position with separate laws from the rest of China, some critics have indicated that its government is under pressure from Beijing.
But amid the growing hostility between the United States and China, and the global uncertainty caused by President Trump’s commercial policies, the deals that include Hong Kong companies have become politicized.
“The deal between CK Hutchison and Blackrock” no longer seen as purely commercial in nature, “said Wang Xiangoy, a leader at Hong Kong University, Baptist.
“Let’s do the opposite and say that Blackrock announced that she will sell its ports to Cheung Kong in Hong Kong,” said Mr. Wang, referring to the name CK HUTCISON in Hong Kong, “referring to the former CK Hutchison. He added: “I imagine that Trump will write angry tweets on the truth that condemns the deal.” “In Congress, I am sure that legislators will make noise and make an investigation into the Congress in this deal as well.”
On Tuesday, Mr. Lee also added criticism from Beijing on the Trump administration threats to definitions, saying that the Hong Kong government urged other countries to provide an equal stadium for companies. Using a language similar to the Chinese government in its own statements on this issue, he added: “We oppose the abusive use of coercion or the bullying tactics of international economic and commercial relations.”
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