After the US and China announced a 90-day truce in their tariff war, China shifted its focus back to the Panama Port deal. That same day, the Hong Kong and Macau Affairs Office issued further statements, and the Hong Kong government suddenly proposed enacting subsidiary legislation to safeguard national security. This prompted Cheung Kong Hutchison Holdings (CK Hutchison) to state that "there is absolutely no way it would be illegal or non-compliant." These series of official actions have sparked concern about the impact on the deal.
CK Hutchison Holdings is selling its port operating rights, including those in Panama, with the transaction expiring at the end of July. CK Hutchison Holdings issued a statement on Monday evening (May 12th), stating that due to continued shareholder and media inquiries regarding the port transaction, it had moved up its scheduled annual general meeting on the morning of May 22nd to address the situation. This statement demonstrates that the transaction could not be conducted under any illegal or non-compliant circumstances. CK Hutchison Holdings reiterated that completion of the transaction is subject to a series of conditions, including legal and regulatory consents and approvals, the absence of any illegal or prohibited circumstances, the necessary approvals of the company's shareholders, and other appropriate and customary conditions stipulated in the definitive documents.
Cheung Kong Holdings issued a late-night statement in response to analysis of the port deal: speculation stems from the Hong Kong government's new national security regulations.
CK Hutchison's statement on the port sale was widely reported by Chinese and international media, and the news also trended on Weibo. Liu Mengxiong, a former member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), has written numerous articles commenting on CK Hutchison's sale of the port. He told RT-Mart that CK Hutchison's response to the port sale before the shareholder meeting was unusual. He believes the move was related to speculation sparked by the Hong Kong Legislative Council's sudden emergency meeting on Monday to discuss arrangements for subsidiary legislation safeguarding national security.
