Lee’s Telecom to retail group CK and reporters were arrested in a highly politicized deal with U.S. companies.
The Hong Kong-based company agreed this month to sell most of its global port operations, including assets near the strategically important Panama Canal, a deal that will bring the company more than $19 billion in cash.
Bloomberg reported that the directive was issued to state-owned enterprises at the request of senior officials. Existing cooperation will not be affected.
The report added that Chinese regulators are also reviewing household investments in China and abroad to better understand the breadth of their business deals.
By noon, CK and Hutchison Holdings stocks rose 1.2%, down from 3.6% earlier in the day. Over the past two weeks, pro-Beijing Hong Kong newspaper Ta Kung Pao has published a series of comments criticizing the agreement for harming China’s national interests and portraying it as a betrayal of China. China’s Hong Kong and Macau Affairs Office has republished some comments on its website, and Beijing has pushed speculation that measures can be taken to try to snap up sales.
A source told Reuters that Chinese regulators have begun investigating the deal under central leadership’s instructions, which is Beijing’s dissatisfaction with CK Hutchison’s disinvestment under perceptions of U.S. pressure.
U.S. President Donald Trump praised the deal after he called for the removal of the Panama Canal from what he believed was China-controlled.
