Panama Officials Conduct Search at Local Office of CK Hutchison: Shares Decline Nearly 1%

CK Hutchison Raid in Panama

CK Hutchison, a Hong Kong conglomerate, had its office unit in Panama searched by authorities on Thursday. According to a source, the raid was conducted by the Public Ministry of Panama as part of an independent investigation. The search did not relate to the government's decision to annul CK Hutchison's contracts to operate two strategic port canals in Panama.

The Panama Ports Company (PPC), a subsidiary of CK Hutchison, had its contracts to operate port terminals at the entrance to the Panama Canal annulled by the Panamanian government after the country's top court declared the contracts unconstitutional. This decision led to a diplomatic row between China and the United States, with US President Donald Trump pressuring Panama to curb Chinese influence over the Panama Canal, which carries about 5% of global maritime trade.

CK Hutchison has stated that it sees the annulment of its contracts as unlawful and is considering legal action. In response to the raid, CK Hutchison's shares fell 0.9% in early trading in Hong Kong on Friday.

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