CK Hutchison Holdings (0001.HK)

[weijian]

Pretty sure CK Hutchison is profit seeking but whether in reality, the sale betrays/sells out the Chinese People is debatable. So I reckon the best way to rally your troops to be united for the coming (trade) war, is to whip up nationalistic sentiment.

Hong Kong’s CK Hutchison under fire after China criticism of ports sale to US

On Thursday, the Ta Kung Pao newspaper based in Hong Kong published a commentary saying the deal “betrays and sells out the whole of Chinese people,” neglects national interests and shows CK Hutchison is profit-seeking.

The commentary, reposted on HKMAO’s website, said the US would constrain China’s maritime trade and Chinese companies would face great risks in logistics and supply chains, impacting China’s Belt and Road initiatives.

https://www.businesstimes.com.sg/compani...ts-sale-us

[weijian]

It is interesting that China is becoming more like US, while US is becoming more like China. With the way how things go, the next generation of each country may be more similar to each other than not.

Commentary: China's anger over Panama ports sale is a wake-up call for Hong Kong tycoons

All signs suggest that China’s leadership was blindsided by the deal's announcement. CK Hutchison announced the deal on Mar 4, coinciding with the start of China’s Two Sessions – the annual meetings of the legislative National People’s Congress and the advisory Chinese People’s Political Consultative Conference (CPPCC).

To put this into context, let’s consider the reverse scenario. Say BlackRock decided to sell 43 ports, including those in the Panama Canal and others in 23 countries, valued at US$22.8 billion, to CK Hutchison in Hong Kong. It's easy to envision Mr Trump immediately condemning the deal on his preferred social media platform, Truth Social, citing national security concerns. US lawmakers would likely raise objections and launch congressional investigations to block the deal.

https://www.channelnewsasia.com/commenta...ng-5012966

[specuvestor]

Correction: Besides Hutch Port Trust there are other HK / China ports not in the package

It's a smart move to sell as a package excluding HK/ China so that 1) China can't scuttle the deal 2) It is not just about Panama but the entire business 3) Any issue it is Blackrock to settle with China

Very well thought of deal to avoid being in the political maelstrom, though dragged by it, and good excuse to sell at good price. To invert, imagine the narrative if CK was just selling the panama ports to Blackrock.

I think The ports that the group operates in China and Hong Kong are not affected by the arrangement. is the Hutch Port Trust listed in SGX

On a similar note HK ports started to lose its allure to Pearl River Delta just after the Hutch Port Trust listed in 2011, from being PSA competitor

https://www.timeout.com/hong-kong/blog/h...era-062316

yes 3 years from now we will probably see the sale was +/- 6 months to peak Agree it gives face to all the parties involved and good deal for CK

If I didn't understand wrongly it is for the entire port business that was under old Hutchison including Panama stake... totally out of ports that's a strong call

From Nikkei:
The Li Ka-shing family company agreed to unload the Panama ports and dozens of other
facilities around the world to a consortium of investors led by the world's biggest asset
manager, BlackRock, the company said in a filing late Tuesday. The ports that the group
operates in China and Hong Kong are not affected by the arrangement.

From Caixin Global:
Panama ports: Hong Kong-based CK Hutchison Holdings Ltd. is selling a controlling position in its Panama port business, following pressure on the local government from U.S. President Donald Trump. A consortium led by BlackRock Inc. is buying the stake in Panama Ports Co., which runs two ports near the Panama Canal and more than 40 other ports globally, for around $19 billion. The deal shows the weight that Trump’s words carry: Panamanian authorities audited the company after he threatened to take back the waterway, citing China’s influence on the key U.S. trade route. The canal, which connects the Pacific and Atlantic oceans, was built and controlled by the U.S. until it was gradually handed over from 1977 — which Trump called a “foolish gift that should have never been made.”

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[edragon]

Since this is a proposed commercial transaction not finalised for another 140+ days, and CK Hutchison is a public Company listed in the Cayman, all parties should stick to the usual due diligence and approvals of all involved including minority shareholders. Counter offers/bids should be considered.

[Behappyalways]

Li is toast????

A good watch

'25.03.20【觀點│正經龍鳳配】Pt.1 看衰「一帶一路」！李嘉誠犯了天條？
https://m.youtube.com/watch?v=M22xKYEnO90

[edragon]

SCMP 14-March-2025

"In the US$23 billion sale, unveiled on March 4, CK Hutchison, a flagship unit of the Li family, would sell 80
per cent of Hutchison Port Group to a BlackRock-led consortium. The assets comprise 43 container ports in
23 countries, including a 90 per cent stake in two Panama ports that have been the target of US President
Donald Trump’s ire. A Singaporean state-owned port authority, PSA International, owns the remaining 20
per cent of the group." ... SCMP

Sleeping partner with BlackRock?

[cmeng_chan]

SCMP 14-March-2025

"In the US$23 billion sale, unveiled on March 4, CK Hutchison, a flagship unit of the Li family, would sell 80
per cent of Hutchison Port Group to a BlackRock-led consortium. The assets comprise 43 container ports in
23 countries, including a 90 per cent stake in two Panama ports that have been the target of US President
Donald Trump’s ire. A Singaporean state-owned port authority, PSA International, owns the remaining 20
per cent of the group." ... SCMP

Sleeping partner with BlackRock?

I think US has reasons to be wary of Chinese companies controlling critical infrastructure that will impact US security. There are many poorer countries that are in the "debt trap" situation. On the other hand, Singapore or PSA does not have such history of controversy.

China: Is it burdening poor countries with unsustainable debt?
https://www.bbc.com/news/59585507

Debt or Diplomacy? Inside China’s Controversial Loans to Sri Lanka, Laos, and Malaysia
https://www.cfr.org/blog/how-one-ports-s...-financing

How One Port’s Struggle Reveals the Problems—and Promise—of Chinese Infrastructure Financing
https://www.cfr.org/blog/how-one-ports-s...-financing

[edragon]

SCMP 14-March-2025

"In the US$23 billion sale, unveiled on March 4, CK Hutchison, a flagship unit of the Li family, would sell 80
per cent of Hutchison Port Group to a BlackRock-led consortium. The assets comprise 43 container ports in
23 countries, including a 90 per cent stake in two Panama ports that have been the target of US President
Donald Trump’s ire. A Singaporean state-owned port authority, PSA International, owns the remaining 20
per cent of the group." ... SCMP

Sleeping partner with BlackRock?

I think US has reasons to be wary of Chinese companies controlling critical infrastructure that will impact US security. There are many poorer countries that are in the "debt trap" situation. On the other hand, Singapore or PSA does not have such history of controversy.

China: Is it burdening poor countries with unsustainable debt?
https://www.bbc.com/news/59585507

Debt or Diplomacy? Inside China’s Controversial Loans to Sri Lanka, Laos, and Malaysia
https://www.cfr.org/blog/how-one-ports-s...-financing

How One Port’s Struggle Reveals the Problems—and Promise—of Chinese Infrastructure Financing
https://www.cfr.org/blog/how-one-ports-s...-financing

Isn't it hypocritical when the USA practise "reverse debt trap"?

The rest of the World must ensure that the USA can continue to pay the regular "coupons" or interests to the World which indirectly include us, (you & I) as our Life Insurance providers already invested our life premiums in the U.S. Bonds.
We are being held ransom, the USA can stop payment anytime once they declare their Bonds suspended. "TOO BIG TO FAIL"

Debt Held by the Public: as of 25-Mar-2025 US$28,900,194,597,054.75 (US$28.9 Trillion) out of a total of US$36.2 trillion. https://fiscaldata.treasury.gov/datasets...-the-penny

All federal debt held by individuals, corporations, state or local governments, Federal Reserve Banks, foreign governments, and other entities outside the United States Government less Federal Financing Bank (FFB) securities.

Debt held by the public is composed of Treasury Bills, Notes, Bonds, Treasury Inflation-Protected Securities (TIPS), Floating Rate Notes (FRNs), Domestic Series, Foreign Series, State and Local Government Series (SLGS), United States Savings Securities, and a portion of Government Account Series (GAS) securities.



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[Behappyalways]

China pauses new deals with Li Ka-shing family after Panama ports plan
https://www.theedgesingapore.com/news/ch...ports-plan

Li is toast????

A good watch

'25.03.20【觀點│正經龍鳳配】Pt.1 看衰「一帶一路」！李嘉誠犯了天條？
https://m.youtube.com/watch?v=M22xKYEnO90

[cmeng_chan]

SCMP 14-March-2025
"In the US$23 billion sale, unveiled on March 4, CK Hutchison, a flagship unit of the Li family, would sell 80
per cent of Hutchison Port Group to a BlackRock-led consortium. The assets comprise 43 container ports in
23 countries, including a 90 per cent stake in two Panama ports that have been the target of US President
Donald Trump’s ire. A Singaporean state-owned port authority, PSA International, owns the remaining 20
per cent of the group." ... SCMP
Sleeping partner with BlackRock?

I think US has reasons to be wary of Chinese companies controlling critical infrastructure that will impact US security. There are many poorer countries that are in the "debt trap" situation. On the other hand, Singapore or PSA does not have such history of controversy.
China: Is it burdening poor countries with unsustainable debt?
https://www.bbc.com/news/59585507
Debt or Diplomacy? Inside China’s Controversial Loans to Sri Lanka, Laos, and Malaysia
https://www.cfr.org/blog/how-one-ports-s...-financing
How One Port’s Struggle Reveals the Problems—and Promise—of Chinese Infrastructure Financing
https://www.cfr.org/blog/how-one-ports-s...-financing

Isn't it hypocritical when the USA practise "reverse debt trap"?
The rest of the World must ensure that the USA can continue to pay the regular "coupons" or interests to the World which indirectly include us, (you & I) as our Life Insurance providers already invested our life premiums in the U.S. Bonds.
We are being held ransom, the USA can stop payment anytime once they declare their Bonds suspended. "TOO BIG TO FAIL"
Debt Held by the Public: as of 25-Mar-2025 US$28,900,194,597,054.75 (US$28.9 Trillion) out of a total of US$36.2 trillion. https://fiscaldata.treasury.gov/datasets...-the-penny
All federal debt held by individuals, corporations, state or local governments, Federal Reserve Banks, foreign governments, and other entities outside the United States Government less Federal Financing Bank (FFB) securities.
Debt held by the public is composed of Treasury Bills, Notes, Bonds, Treasury Inflation-Protected Securities (TIPS), Floating Rate Notes (FRNs), Domestic Series, Foreign Series, State and Local Government Series (SLGS), United States Savings Securities, and a portion of Government Account Series (GAS) securities.

-

Well, if people feel uncomfortable with the risk, then the public can opt to use other currencies like EUR, YEN, etc. Its up to them to decide on the risk, compare against alternatives, etc. However, none of the other alternate debt markets are large, liquid and deep enough compared to US.  US still has an independent central bank that targets the inflation level, which will keep the purchasing value of the USD, and that meant the value of the USD holdings. So, despite the debt level, public will still use US debt market.

I believe Japan is in a much worse debt shape among the developed countries or those with large economies.  Japanese government debt or borrowing has been the highest so far and much past doom/gloom articles have been written on it, but its still surviving.  Looking at the absolute numbers is misleading, and its more accurate to compare it to the countries GDP.

Japan government debt to GDP at 255%
Singapore govt debt to GDP at 168%
United States govt debt to GDP at 122%
United Kingdom govt debt to GDP at 97.6%
China  govt debt to GDP at 83.4%
Australia govt debt to GDP at 43.3%

https://worldpopulationreview.com/countr...ntry#title
* This ratio does not consider the countries' surplus or reserves. Singapore government debt ratio looks high, and they are the government bonds, Treasury bills, etc... aggregated and then compared to the GDP.

Debt-to-GDP ratio is an economic metric that compares a country’s government debt to its gross domestic product (GDP) (which represents the value of all goods and services produced by the country). Typically used to determine the stability and health of a nation’s economy, debt-to-GDP ratio is expressed as a percentage and offers an at-a-glance estimate of a country’s ability to pay back its current debts. It is typically evaluated alongside related metrics such as GDP per capita, GDP growth, GNP, and GNI per capita.


Nations with a low debt-to-GDP ratio are more likely to be able to repay their debts with relative ease. Nations whose economies struggle to produce income or which have an oversized debt tend to have a high debt-to-GDP ratio. Debt-to-GDP ratios above 77% can hinder economic growth and (in some cases) place a country at risk of defaulting on its debts, which could wreak havoc on its economy and financial markets.