Port trading changes? The Panama port operation contract was ruled unconstitutional, and CKH HOLDINGS, owned by Li Ka-shing, saw a sharp decline in stock prices! The Hong Kong government: Strong dissatisfaction, companies should seriously review their current and future investments in the local area

According to a press release from the Hong Kong Special Administrative Region government, regarding the ruling by the Supreme Court of Panama that declared unconstitutional the renewal of the operating contracts for two ports between the Panamanian government and Hutchison Ports Panama, the Hong Kong SAR government expressed strong dissatisfaction and firm opposition on January 30. A government spokesperson stated that the SAR government strongly opposes any foreign government using coercion, pressure, or other unreasonable means in international economic and trade relations, which severely undermines the legitimate operating rights of Hong Kong enterprises locally. This will also seriously damage the local business environment, inevitably shake investor confidence, and harm bilateral relations and the long-term economic development of both places. The SAR government reiterated that the Panamanian government should respect the spirit of contracts and provide a fair and just business environment for enterprises operating legally in the local area, ensuring that the legitimate rights and interests of enterprises are not interfered with. Hong Kong enterprises operating and investing in Panama should receive fair and reasonable treatment and protection. The spokesperson said, "Given the current situation in Panama, Hong Kong enterprises should carefully examine their current and future investments in the local area." On January 30, Foreign Ministry spokesperson Guo Jia Kun hosted a regular press conference. A reporter asked about the Supreme Court of Panama's announcement that it had declared the contract authorizing Cheung Kong Holdings to operate the Panama port terminal invalid. These two terminals are part of a portfolio of 43 port assets that Cheung Kong Holdings attempted to sell, with potential buyers including BlackRock from the United States and COSCO Shipping from China. What is China's comment on this decision by the Supreme Court of Panama? Will this ruling affect the ongoing negotiations for the related transactions? Guo Jia Kun Source: Ministry of Foreign Affairs website (file photo) "I believe you noticed that the relevant enterprises have issued statements at the first opportunity, indicating that this ruling contradicts the laws approved by the Panamanian side regarding the relevant franchise rights, and the enterprises will reserve all rights, including legal proceedings." Guo Jia Kun said that China will take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese enterprises. On January 30, the stock price of CKH Holdings, which had been rising throughout the year, plummeted, dropping over 5% at one point, and closed down 4.6%. On March 4, 2025, CKH announced plans to transfer its holdings and operations of 43 ports distributed across 23 countries to a consortium led by BlackRock from the United States, with a total value of $22.8 billion, including ports at both ends of the Panama Canal. On July 28, 2025, CKH issued an announcement stating that the exclusive negotiation period with a consortium mentioned in the announcement on March 4, 2025, had expired. Although this period has expired, the group is still in discussions with consortium members and intends to invite major strategic investors from mainland China to join as important members of the consortium. The company stated that no transactions would be conducted until all relevant regulatory approvals and departmental approvals are obtained In August 2025, the management of CKH HOLDINGS stated that the current transaction has entered a new phase, such as inviting major investors from the mainland to join the discussion, hoping to obtain approval from all relevant regulatory agencies. However, it is expected that the timeline will be longer than originally planned, and the transaction will not be completed in 2025. Risk Warning and Disclaimer The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk.