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Reuters
a day ago
- Business
- Reuters
CK Hutchison sees "reasonable chance" of $22.8 bln ports sale going through
HONG KONG, Aug 14 (Reuters) - CK Hutchison ( opens new tab said on Thursday its $22.8 billion ports business sale had a "reasonable chance" of going through after a plan to add a Chinese major strategic investor to the buying consortium, as it tries to navigate through Sino-U.S. tensions. CK Hutchison, based in the Chinese-controlled territory of Hong Kong, has faced heavy criticism from Beijing since unveiling a plan in March to sell 43 ports in 23 countries, including two near the Panama Canal, to a group led by BlackRock (BLK.N), opens new tab and Italian Gianluigi Aponte's family-run shipping firm MSC. President Donald Trump had called for the U.S. to "take back" the Panama Canal, which is used by more than 40% of U.S. container traffic, valued at roughly $270 billion annually, from Chinese influence. CK Hutchison's ports are not on the canal or part of it, however. "We are into a new stage of our deal," group co-managing director and finance director Frank Sixt told analysts at an earnings conference. "There is a reasonable chance that those discussions will lead to a deal that is good for all of the parties, ourselves included. And most importantly, that we'll be capable of being approved by all of the relevant authorities." On July 28, the conglomerate said it was in talks to include a Chinese "major strategic investor" in the bid for its ports, and that it would allow as much time as needed to secure approval in relevant jurisdictions. On Thursday, Sixt said these included China, the U.S., Britain and the European Union. He said the talks were taking much longer than expected but that this was "not particularly troublesome" because the port business had delivered stronger earnings and cash flow this year than expected. Sources have said the investor is COSCO ( opens new tab - one of the world's dominant, vertically integrated marine transportation firms. They said COSCO wanted a bigger stake while the other parties were keen to keep it a minority. The inclusion of a Chinese investor would alleviate Beijing's security concerns and have its blessing, the sources and other experts have said. COSCO did not respond to a request last month for comment. Thursday's results conference was the first opportunity for analysts to quiz management about the ports deal. But chairman Victor Li, eldest son of Hong Kong's richest man, Li Ka-shing, who took over the conglomerate from his father, was missing for the first time, as was deputy chairman Canning Fok. Also unusually, CK Hutchison did not brief analysts or media about its 2024 earnings when it released them in March. Its shares closed down 0.4% on Thursday ahead of the results, in line with the Hang Seng Index (.HSI), opens new tab. The conglomerate posted an 11% rise in first-half underlying profit to HK$11.3 billion ($1.44 billion) on a post-IFRS 16 basis. UBS had forecast a 6% rise. However, including one-time non-cash accounting loss, notably from the merger of 3UK and Vodafone UK, net profit dropped 92% year-on-year to HK$852 million. The company said global trade and consumer demand affecting its ports business would remain volatile in the second half due to uncertainty over trade disputes and geopolitical risks. ($1 = 7.8474 Hong Kong dollars)
Yahoo
06-06-2025
- Business
- Yahoo
US investment firm Artisan Partners to close Hong Kong office, sources say
By Kane Wu and Summer Zhen HONG KONG (Reuters) -U.S.-based investment firm Artisan Partners is shutting down its Hong Kong office by the end of June, two sources with knowledge of the situation said. The firm is disbanding the Hong Kong-based team after it decided to shut down its Greater China strategy partly due to concerns about escalating Sino-U.S. trade and geopolitical tensions that have made investments in the world's second-largest economy riskier, said one of the sources. Artisan, which is headquartered in Milwaukee, Wisconsin, and managed $164.4 billion globally as of the end of April, did not immediately respond to Reuters' requests for comment. The sources declined to be named as the information was not public. Reuters could not immediately ascertain how many people would be affected by the shutdown of the Hong Kong office. The firm's China post-venture strategy, a fund that focuses on Chinese small- and mid-cap public and private companies, had $113 million of assets under management at the end of April, according to the firm's monthly update. In the same update, Artisan said the China-focused portfolio was in the process of winding down, without giving details. The firm's retreat from Hong Kong comes amid the U.S. government's tightened scrutiny of American investments in China and an ongoing trade war that has clouded the business outlook of many export-heavy companies from China. The U.S. government restricts U.S. investments in certain sensitive technology sectors in China, such as semiconductors, artificial intelligence and quantum computing. U.S. investors are also restricted from investing in companies that are on the U.S. sanctioned entity list that comprise a growing number of those from China. U.S. onshore investors were not able to buy shares of Chinese battery giant CATL in its $4.6 billion Hong Kong listing last month due to the structure of the deal, CATL's filings showed. CATL was placed on a U.S. Defense Department list in January of Chinese companies it says work with China's military. By March 2025, Artisan's China post-venture strategy posted a net loss of 10.4% since its inception in March 2021. "The largest risks for investing in China will continue to be geopolitics and domestic policy overshoots," Tiffany Hsiao, the strategy's portfolio manager, said in a client letter on the firm's website in April. Outside the U.S., Artisan also has offices in London, Dublin, Singapore, and Sydney, according to its website. The move follows the exit or downsizing of several North American asset managers and international law firms from Hong Kong over the past few years. Ontario Teachers' Pension Plan, Canada's third-largest pension fund, announced the closure of its Hong Kong office in March.
Yahoo
13-05-2025
- Business
- Yahoo
Chinese Stocks Slide as Trade Truce Seen Dashing Stimulus Hopes
(Bloomberg) -- Chinese stocks fell in Hong Kong on Tuesday, as initial optimism from the tariff truce with the US gave way to concerns that Beijing would hold back on stimulus measures. A New Central Park Amenity, Tailored to Its East Harlem Neighbors As Trump Reshapes Housing Policy, Renters Face Rollback of Rights What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration The Hang Seng China Enterprises Index dropped as much as 1.9% after climbing 3% in the previous session on optimism over thawing Sino-US tensions. The onshore benchmark CSI 300 Index pared early gains. The retracement reflects worries that Chinese policymakers would have less incentive to push through higher fiscal spending or enact more stimulus, which are needed to address growth challenges, according to Sat Duhra, a portfolio manager at Janus Henderson Investors. It's also a sign that investors are shifting their focus toward the material impact of still-higher US import duties, as well as uncertainties over further bilateral talks in the coming months. 'The uncertainty is no longer about what tariffs will be imposed, but about how these levels will hit earnings and economic momentum, especially heading into the third quarter,' said Charu Chanana, chief investment strategist at Saxo Markets. 'So while sentiment has improved, the real test lies in how consumers and corporates respond to these new trade realities.' The Hong Kong gauge's latest decline means it has yet to recoup all the losses it has incurred from early April, when Trump announced his aggressive tariffs. It also has dented hopes to revive a world-beating rally in Chinese equities earlier this year. The US said Monday it will slash duties on Chinese products to 30% from 145% for a 90-day period, while Beijing agreed to drop its levy on most goods to 10%. Another factor weighing on sentiment is concern that the Trump administration would escalate tensions again. Previous episodes of him walking back agreements during the 2018 trade talks are reminders for investors to stay cautious. 'There is still uncertainty as to whether there will be any back and forth in the 90-day buffer period,' said Shen Meng, director at Beijing-based investment bank Chanson & Co. Separately, the yuan climbed to a six-month high in both the onshore and offshore markets on Tuesday after the People's Bank of China set the currency fixing stronger than the 7.2 per dollar level. --With assistance from Iris Ouyang and Winnie Hsu. The Recession Chatter Is Getting Louder. Watch These Metrics US Border Towns Are Being Ravaged by Canada's Furious Boycott Two Million Meat Sticks a Day Isn't Enough for Chomps' CEO With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise How the Lizard King Built a Reptile Empire Selling $50,000 Geckos ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
13-05-2025
- Business
- Bloomberg
Chinese Stocks Slide as Trade Truce Seen Dashing Stimulus Hopes
Chinese stocks fell in Hong Kong on Tuesday, as initial relief from the tariff truce with the US gave way to concerns about the weaker need for Beijing to ramp up growth stimulus. The Hang Seng China Enterprises Index dropped as much as 1.9% after climbing 3% in the previous session on optimism over thawing Sino-US tensions. The onshore benchmark CSI 300 Index erased earlier gains.
