Li Ka-shing’s son invited to Beijing amid controversial Panama port deal

Hong Kong – Shares in Hong Kong billionaire Li Ka-shing’s CK Hutchison Holdings rallied after one of his sons was invited to mix with senior Chinese officials and global executives at a high-profile meeting in Beijing over the weekend amid the company’s controversial sale of its ports in Panama.

According to a list of attendees, Mr Li’s son Richard was invited as a founder of Pacific Century Group to the State Council’s two-day China Development Forum, mingling with the country’s top leaders, including Premier Li Qiang, and executives such as Apple’s Mr Tim Cook, Pfizer’s Mr Albert Bourla and Saudi Aramco’s Mr Amin Nasser.

While Mr Richard Li oversees his own business group and has no role in CK Hutchison – the company selling the port assets – investors appear to have interpreted the move as a positive signal to the Li family. CK Hutchison’s shares rose as much as 5.2 per cent on the morning of March 24, the most in more than two weeks. 

The flagship conglomerate of Mr Li Ka-shing’s global business empire, CK Hutchison has been caught in the crosshairs of increasing tensions between the US and China. The company, now led by his elder son Victor, has drawn ire from Beijing since it announced an agreement to sell 43 ports, including two in Panama, to a consortium led by BlackRock for US$19 billion (S$25.4 billion) in cash proceeds. 

While the company has kept its ports in Hong Kong and China, the sale upset Beijing after US President Donald Trump touted it as reclaiming the Panama Canal from Chinese influence. The Chinese authorities have begun looking into the deal for potential national security and antitrust violations, Bloomberg reported earlier in March.

CK Hutchison is expected to sign the agreement involving the sale of its two Panama ports by April 2.

In a commentary piece on March 21, pro-Beijing newspaper Ta Kung Pao urged CK Hutchison to pull out from the deal as it risks violating Hong Kong’s laws on safeguarding national sovereignty, security and development interests. The paper had blasted the company for its “spineless grovelling” to Mr Trump and “selling out all Chinese people” in previous commentaries, which were reposted by China’s top office on Hong Kong affairs, signalling the criticism reflects the government’s view.

Several prominent Hong Kong politicians have also weighed in on the deal, with the city’s leader John Lee vowing to handle the deal “in accordance with the law and regulations”.

CK Hutchison is registered in the Cayman Islands and makes about 12 per cent of its revenue from Hong Kong and China, while Europe, Canada and Australia make up the bulk of the rest. BLOOMBERG