HK Stock Market Move | CKH Holdings (00001) falls by more than 3% again, Panama ruled the port contract unconstitutional, UBS believes that the negotiations for the sale of port business may pose a risk.

CKH HOLDINGS (00001) fell by more than 3% again, falling 3.56% at the time of writing to 61 Hong Kong dollars, with a turnover of 7.16 billion Hong Kong dollars. On the news front, the Supreme Court of Panama previously issued a ruling stating that two ports operated by companies under the Li Ka Shing family-controlled Cheung Kong Industries in Panama were in violation of the constitution and cancelled the relevant contracts. In response, a spokesperson for the Ministry of Foreign Affairs responded to the incident on the afternoon of January 30, stating that the company had issued a statement immediately, stating that the ruling went against Panamanian laws approving the related concession rights and that the company would retain all rights including legal proceedings. China will take all necessary measures to firmly defend the legitimate rights and interests of Chinese companies. UBS pointed out that the two ports in Panama account for only 5% of the EBITDA of the Cheung Kong Ports Holdings group and 0.8% of the overall EBITDA of CKH HOLDINGS. The downside risks are more related to the ongoing sale negotiations of the port business of CKH HOLDINGS, including the two ports in Panama. However, there have also been reports earlier that CKH HOLDINGS is considering splitting the port transaction into separate parts with different ownership structures for handling.