Hong Kong tycoon Li Ka-shing’s business empire is in the crosshairs after CK Hutchison Holdings chose to sell its Panama Canal port assets to a consortium that includes U.S. investment firm BlackRock Inc., apparently angering Beijing.
Over the past week, Beijing’s Hong Kong affairs offices have posted scathing commentaries from a local state-backed media outlet over the tentative deal by Hutchison, which is controlled by Li’s family.
That raises questions about the deal and highlights the difficulties Hong Kong businesses face as they balance demands from Beijing for national loyalty and their own capitalist interests in the once free-wheeling Asian financial hub. Here’s what to know about the issue.
Hong Kong’s richest tycoon
Nicknamed “Superman,” Li is among the world’s 50 richest people, with Forbes calculating his net worth at $38 billion. Li, 96, retired from his position as chairman of CK Hutchison in 2018, succeeded by his elder son Victor. But he’s still one of Hong Kong’s most influential figures.
Li’s rags-to-riches story paralleled the former British colony’s rise. His business empire touches almost every aspect of daily life in Hong Kong, from properties and supermarkets to telecommunications and utilities. Globally, his conglomerate owns assets including British drugstore chain Superdrug and European mobile phone network operator Three.
A Hutchison subsidiary has operated ports at both ends of the Panama Canal since 1997. That was one reason U.S. President Donald Trump has alleged Chinese interference with the critical shipping lane’s operations.
Li’s ties with Beijing
Li’s influence extends beyond business. He has met with top Chinese leaders and has served on the elite committee that selected Hong Kong’s leader.
Experts on ties between Beijing and Hong Kong said ruling Communist Party leaders once understood that support from the business sector was crucial for maintaining Hong Kong’s capitalist system. It has been strategically vital for mainland China’s economy, given the role their global networks and resources play in the country’s development. So, Li has had notable political influence.
Source: Associated Press