Hong Kong investors are reviewing their stakes in Panama following a dispute over a concession held by a subsidiary of CK Hutchison to operate two ports in the country, the city’s leader has said, pledging to work with Beijing to push back.
Chief Executive John Lee Ka-chiu on Tuesday also urged Panamanian authorities to ensure “fair and reasonable” treatment for Hong Kong firms operating in the country.
“Hong Kong enterprises’ operation and investment in Panama should be entitled to fair and reasonable treatment and protection.”
Lee’s remarks came days after commerce minister Algernon Yau Ying-wah summoned the Panamanian envoy in Hong Kong to convey the government’s condemnation of a court ruling that invalidated CK Hutchison’s contract.
Yau urged Panamanian authorities to respect the spirit of the contract, provide a fair and just environment for legally operated businesses, and ensure that the legal rights of enterprises were not interfered with.
The judgment, handed down by the Supreme Court of Justice last month, declared that the deal allowing the Panama Ports Company (PPC), a subsidiary of the conglomerate led by billionaire Li Ka-shing, to operate the Balboa and Cristobal terminals was unconstitutional.