Li Ka-shing's Cheung Kong Group plans to sell its business, including Panama Port, and originally planned to sign a final agreement before next Wednesday. However, under pressure from the Chinese Communist Party, Cheung Kong Group "leaked" to several Hong Kong media on Friday (28th) that the transaction will be suspended and no agreement will be signed next week.
This transaction has been bombarded by Chinese party media in recent days. Earlier reports indicated that even Chinese President Xi Jinping was "outraged". The CCP even ordered state-owned enterprises to suspend any new cooperation plans with the Li family, and the Hong Kong government also had to discuss solutions with Cheung Kong Holdings.
The protagonist of the incident, Cheung Kong Holdings, had not given any specific response until Friday evening, when it leaked the information to the media by claiming that "seniors close to senior management of Cheung Kong Holdings" indirectly "announced" that the plan had been suspended.
The outside world is closely watching how Li Ka-shing handles this incident, with some suggesting that if the deal ultimately falls through, it would significantly impact Hong Kong's business environment, creating a sense of "politics trumping free economics." Our Cantonese team recently interviewed financial commentator Lee Shi-min, who expressed concern, "If even Li Ka-shing has run into trouble, who else won't?" Now that the Li family has made this choice, the extent of the ripple effects remains to be seen.
