$COSCO SHIP PORT(01199.HK)

COSCO SHIPPING Ports, a subsidiary of COSCO SHIPPING Group, has a solid cooperative foundation with Hutchison Ports. The two parties have long-standing joint ventures in key terminals such as Shanghai Port's Pudong International and Mingdong Terminals, Yantian International Terminals Phases I, II, and III, Hong Kong Port's Asia Container Terminals and COSCO-HIT Terminals, and Rotterdam Port's Euromax Terminal. In recent years, they have also strengthened cooperation in overseas ports, including the joint development of the new container terminal at Sokhna Port in Egypt and COSCO SHIPPING Ports' acquisition of Hutchison Ports' stake in Laem Chabang Port. Besides COSCO SHIPPING, other state-owned port operators also have opportunities. COSCO SHIPPING Ports has previously collaborated with another state-owned terminal operator on overseas terminal projects. However, there are also negative factors. First, Chinese port operators like COSCO SHIPPING Ports face increasing regulatory pressure overseas. Second, in the container shipping and terminal markets, COSCO SHIPPING competes with MSC. Even if COSCO SHIPPING successfully joins the transaction, it will still face scrutiny and need to negotiate the transaction structure with MSC, BlackRock, and others. Therefore, Hutchison Ports' deal will become even more complex and may introduce additional variables.