Hong Kong’s CK Hutchison stresses need for war chest in face of geopolitical tensions
Victor Li says firm must maintain fiscal health, as another executive stresses US$23 billion sale of stake in overseas ports will comply with regulations
Hong Kong’s CK Hutchison Holdings needs a war chest to maintain its fiscal health in the face of escalating geopolitical tensions, chairman Victor Li Tzar-kuoi has said, with a senior manager stressing that a controversial US$23 billion sale of its stakes in overseas ports including two Panama facilities will comply with regulations.
At the conglomerate’s annual general meeting on Thursday, Li said that many uncertainties were arising from geopolitics and the tariff policies of various countries, adding he “dared not” forecast global economic development.
“Hong Kong is currently undergoing what I would call a ‘stress test’. We are holding cash with fewer loans, better safe than sorry,” Li said.
But he added that the group needed to maintain its fiscal health with a war chest to cope with any unforeseen circumstances.
“Only with financial backing, can we face any headwinds more easily,” he said.
Senior management shed some light on the US$23 billion ports deal, which excludes the company’s facilities in Hong Kong and mainland China, during CK Hutchison’s first public event since the announcement on March 4 about the sale to a consortium led by US asset management giant BlackRock.