Positive Patent Outlook! Li Ka-shing Sells Panama Canal Project, CK Hutchison Faces Unprecedented Crisis!

TradingKey - CK Hutchison's stock price continues to decline, falling over 3%. The future looks unclear.

On Monday, March 31, a report from a Chinese state media outlet sent shockwaves through the markets, prompting a sharp sell-off in CK Hutchison Holdings (CK),the flagship business of Li Ka-shing’s family. Shares fell nearly 5% during intraday trading and closed down 3.3%.

On March 4, CK announced plans to sell the operations of 45 ports across 23 countries to U.S.-based investment giant BlackRock. The $23 billion deal is scheduled to be signed on April 2. Following the announcement, CK's stock surged 38% in just two days, jumping from HK$38 to HK$52.9.

However, the rally began to falter on March 10. By March 13, a Hong Kong newspaper critical article accusing CK of compromising national interests by transferring control of two ports near the Panama Canal. The article alleged that the company lacked integrity and was betraying China’s strategic interests. The criticism intensified when the Hong Kong and Macau Affairs Office, along with the Liaison Office of the Central People’s Government, shared the article—adding significant political weight and accelerating the stock’s decline.

On March 28, China's State Administration for Market Regulation announced it would  launch a review of CK's deal with BlackRock, specifically concerning the Panama port operations.

Now, uncertainty clouds the future of the  transaction. CK faces mounting political pressure, and the once-celebrated deal is at risk of unraveling. With regulatory scrutiny intensifying, the company’s path forward appears increasingly uncertain.