China criticizes figs plan, panama channel ports on black rock for sale

China criticizes figs plan, panama channel ports on black rock for sale

China has expressed sharp criticism of a proposal to sell the ports in the Panama Canal to the American asset manager Blackrock. The Chinese authorities described the deal as "cowardly crawling" and as "betrayal" on the Chinese people.

sinking of the stock prices from CK Hutchison

A comment, published by the state -owned Ta Kung Pao Zeitung and on the website of the Hong Kong Office for Hong Kong and Macau Affairs, dropped the shares of CK Hutchison (CKH), the Hong Kong owner of the ports, on Friday by more than 6%. Observers interpret this decline as a sign that some investors fear that the deal may not come about if Beijing raises objections.

expertise of market researchers

"I am not aware that any approval of Chinese supervisory authorities is necessary, since CKH will keep all of its existing Chinese ports," explained Dan Baker, a senior analyst for stocks at Morningstar, to CNN. "Of course there is the possibility that other influences are being exercised on the company that could endanger the deal.

Investment deal in the Panama Canal

Last week, a group of investors led by Blackrock announced that it was $ 22.8 billion for the purchase of the Häfen Balboa and Cristobal at both ends of the CK Hutchison. The consortium has also agreed to acquire CK Hutchison's majority share of 43 other ports, which include 199 berths in 23 countries. It was said that the deal is a "fundamental agreement".

political backgrounds and effects

President Donald Trump had stated during his authorization and since taking office that he intended to take back Panama Panama Canal. In 1999 Panama took control of the decisive international waterway as part of a contract negotiated with the USA that came about 20 years earlier. Trump led Chinese ownership of some port operations as an indication that China is now operating the channel.

strategic considerations of CK Hutchison

The sale was regarded as a pragmatic solution for CK Hutchison, a global conglomerate that is supported by Li Ka-Shing, which has long been considered one of the most versed investors in Hong Kong. The deal could make it possible to part with a political "hot potato" while you get an attractive price from Blackrock and your partners.

In a message to the Hong Kong Stock Exchange, the company expressed that it expects cash inflows of over $ 19 billion out of sale, which is clearly above the estimates of the analysts that provide the value of the ports.

reactions to Chinese criticism

But the sharp comment of a newspaper associated with the Governing Communist Party could endanger the deal. The newspaper accused Ck Hutchison to "crawl", "profit -oriented" and to disregard "national interests and justice and to reveal the entire Chinese people."

"In view of such an important event and a question of great justice, the company in question should consider twice and carefully weigh on which side it should be," she added.

historical meaning of the Panama Canal

The Panama Canal was built by the USA in the early years of the 20th century and completed in 1914. During most of this century, he was operated by the United States before the Carter government negotiated its handover to Panama in a controversial contract that was then rejected by many Republicans.

The 51 military channel plays a crucial role for international trade and the military ships in the United States. About 4% of the global sea deal and more than 40% of the USA runs through the channel. Since its handover in 1999, the channel of Panama and not by China has been operated, despite the concerns that Trump has expressed.