CKH HOLDINGS' two ports in Panama were temporarily taken over, and the stock price once fell by 1%

Panama's President José Raul Mulino has ordered the temporary takeover of operations at two ports managed by CKH HOLDINGS (001). Earlier, the country's Constitutional Court ruled that the contract for CKH HOLDINGS to operate the ports at both ends of the canal was unconstitutional. Following this, CKH HOLDINGS issued a statement on February 4th strongly opposing the ruling, indicating that it would initiate international arbitration proceedings and reserve the right to take further legal action. As a result of the news, the stock fell about 1% to HKD 63.65 this morning; it is currently reported at HKD 63.85, down about 0.6%. "Does not mean loss of ownership" According to Bloomberg, José Raúl Mulino stated on Monday (23rd) that the management and operation of the two strategically located ports at the Panama Canal will be handed over to the National Maritime Authority "to ensure the ports operate continuously, safely, and efficiently." He also mentioned that this takeover applies to movable equipment within the ports, "which does not mean a final loss of ownership." Panama will return the property, including cranes, to the owners "when the reasons for the takeover cease to exist" and will pay corresponding compensation, unless the relevant equipment is sold to a new party. Additionally, Panama media La Prensa reported that APM Terminals, a subsidiary of Maersk, will operate one of the ports during the transition period, while the local subsidiary of MSC Mediterranean Shipping Company, headquartered in Switzerland, will operate the other port until new contracts are signed through a new bidding process. CKH HOLDINGS stated in mid-February this year that it had notified the Panamanian government based on the investment protection treaty and invited the other party to negotiate a solution. At the same time, it issued a notice to Maersk, which is interested in taking over the ports, warning that the relevant arrangements would harm the company and could lead to legal action, and reminded third parties not to engage in any illegal activities. Related article: Panama Ports | CKH HOLDINGS initiates international protection mechanism, requests authorities to negotiate, criticizes Maersk's takeover as harmful. In Beijing, Foreign Ministry spokesperson Lin Jian reiterated China's position on the Panama port issue. The State Council's Hong Kong and Macau Affairs Office previously stated that the ruling by Panama's Supreme Court disregards facts and is a breach of trust, severely harming the legitimate rights and interests of Hong Kong enterprises, emphasizing that the Chinese government will firmly safeguard the legitimate rights and interests of Chinese enterprises. The Panama Port Company also issued a statement, indicating that the ruling violates relevant legal frameworks and contract approval procedures, and is contrary to the spirit of good faith and contracts, which is disgraceful. On the other hand, reports last month indicated that CKH HOLDINGS is advancing plans to sell its ports, intending to arrange for China COSCO Shipping Group to have greater equity in ports in regions more friendly to China, such as ports in Africa, while Italian billionaire Gianluigi Aponte's Terminal Investment Ltd. and American investment firm BlackRock may have greater control elsewhere. Reports cited informed sources stating that the Chinese government has indicated to China COSCO Shipping that it would accept this structure. The sources also mentioned that the U.S. action in January to arrest and take away Venezuelan President Maduro has heightened Beijing's concerns about increasing uncertainty in Latin America. However, the progress of CKH HOLDINGS' sale of its 43 ports (including the two Panama Canal ports) has been slow, and last year it invited China COSCO Shipping to join a consortium to negotiate the purchase of the ports, seeking approval for the transaction from the mainland