China’s top market regulator said on Friday it will launch a review of the proposed sale related to Panama ports by Hong Kong-listed CK Hutchison Holdings, which has reportedly postponed signing the deal.
Responding to media inquiries, a spokesperson for one of the State Administration for Market Regulation’s anti-monopoly divisions said in a written reply, “We are aware of this transaction, and will conduct a review in accordance with the law to protect fair market competition and safeguard public interests.”
No further details were disclosed. The division’s official website showed that it is specifically responsible for handling cases relating to the concentration of businesses, including “guiding enterprises in responding to antitrust litigation and compliance work abroad”.
CK Hutchison Holdings, founded by Hong Kong tycoon Li Ka-shing, announced on March 4 that it had agreed “in principle” to sell a 90 percent stake of its Hutchison Port Group to a consortium led by the United States investment firm BlackRock for $22.8 billion.
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Hutchison Port Group owns 43 container ports with 199 berths across 23 countries, including a 90 percent stake in the Balboa and Cristobal docks situated at either end of the strategic Panama Canal.
Initially, the company anticipated signing the deal, if completed, on April 2. However, on Friday, local and international media outlets cited a source close to the matter that the signing would not take place on the expected date. It is unclear if the deal has been postponed, canceled, or is undergoing further refining.
On Friday, Chan Man-chau, president of the Hong Kong Industrial and Commercial Association, voiced support for the regulatory review and called for CK Hutchison’s cooperation. “The Panama port occupies a strategic position in international trade and is closely linked to China’s national interests,” Chan said.
Stanley Ng Chau-pei, a Hong Kong lawmaker and trade union leader, criticized those who invoked the idiom “business is business” to justify the deal. He stressed that no commercial interest should override national sovereignty, security, and development interests.
The Panama Canal, a vital global shipping artery that hosted an average of 34.2 vessels per day as of December, is widely recognized as a lucrative commercial venture. Forbes recently estimated that the canal generated around $3.5 billion in net income in 2024.
The robust performance was also evident in CK Hutchison Holdings’ latest annual report, released on March 20. Although the company saw its net profit decline by 27 percent year-on-year to HK$17.09 billion ($2.2 billion) in 2024, its ports and related services segment generated HK$45.28 billion in revenue, marking an 11 percent increase from the previous year.
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However, the high-profile proposed sale has sparked widespread concern, as the decision was influenced by geopolitical tensions — and potentially direct US pressure. US political leaders have increasingly asserted the country’s strategic interests in the canal, or “reclaiming” it, potentially by military force.
A recent editorial published by the Hong Kong-based newspaper Ta Kung Pao warned that the deal, if realized, could allow the US to weaken China’s competitiveness in global trade by increasing logistics costs and disrupting the supply chain.
At a news conference on March 18, Chinese Foreign Ministry spokesperson Mao Ning said, “China firmly opposes moves that infringe upon and undermine other countries’ legitimate rights and interests through economic coercion, hegemonism, and bullying.”
Hong Kong Chief Executive John Lee Ka-chiu said on the same day that public concerns over the proposed sale deserve attention. He also expressed firm opposition to any form of coercion or pressure tactics in international trade deals.
