Li Ka-shing's Business Empire Loses $781 Billion in Market Value Amid Controversy

The controversy revolves around Li Ka-shing's decision to sell his port assets, including two crucial ports at the Panama Canal, to the Blackstone Group for $22.8 billion. The deal has raised eyebrows due to its enormous amount and the significant implications it may have on the global shipping industry. Li Ka-shing's company, Cheung Kong, has been operating these ports since 1997, and the contract was set to expire in 2047. However, the recent pressure from the US on Chinese companies operating in Panama, coupled with the strategic importance of these ports, has led Li Ka-shing to make this move.

The sale has been seen as a strategic retreat, and the market has reacted negatively to the news. The market value of Li Ka-shing's companies has plummeted, with Cheung Kong's market value alone evaporating by over HK$300 billion in just 11 trading days. The transaction has also sparked debate about the motivations behind the sale and its potential impact on the industry. Some have questioned whether Li Ka-shing's decision was driven by a desire to avoid potential risks or to secure a lucrative deal. Others have raised concerns about the implications of the sale on the global shipping industry and the potential consequences for Hong Kong's economy.

The situation has been further complicated by the Chinese government's implicit warning to state-owned enterprises to suspend new business dealings with Li Ka-shing's companies. This move has sent a clear signal that Beijing will not tolerate any actions that may be perceived as compromising national interests. The Chinese Foreign Ministry has explicitly stated its opposition to economic coercion and has urged all parties to act in accordance with international laws and regulations. The government's attitude is clear: it will support Li Ka-shing and defend his legitimate rights if he is subjected to US pressure.

The prolonged pressure on Li Ka-shing's companies has led to a substantial evaporation of their market value, which in turn affects market confidence. This is because if a major figure like Li Ka-shing is unable to withstand external pressures, it raises concerns among investors and other market players about their own vulnerability. The situation sparks worry about how other international capital will respond to similar pressures. If a business leader of Li Ka-shing's stature faces significant challenges, it implies that smaller or less diversified entities might be even more susceptible to economic and political pressures.

As the situation continues to unfold, it remains to be seen how Li Ka-shing's business empire will be affected in the long run. The market is watching closely to see how he will navigate these challenges and adapt to the changing business landscape. One thing is certain, however: Li Ka-shing's reputation as a shrewd businessman and his ability to navigate complex deals have been called into question, and his next moves will be closely scrutinized by investors, regulators, and the general public. The Chinese government has already indicated its stance and prepared countermeasures, and Li Ka-shing needs to understand the situation and prioritize national interests. If he is coerced by the US, he should courageously expose the truth, trusting that the country will defend his legitimate rights. This is not just about his personal business fate, but also affects market confidence.