China Is Said to Scrutinize Li Ka-shing’s Panama Port Deal (2)

Chinese authorities have begun looking into CK Hutchison Holdings Ltd.’s sale of its overseas port businesses, people familiar with the matter said, amid signs that Beijing is unhappy that the Hong Kong conglomerate divested its Panama operations under US pressure.

Several Chinese agencies, including the State Administration of Market Regulation (SAMR), have been instructed by senior state leaders to study the deal for any potential security breaches or antitrust violations, said the people, who asked not to be identified as the deliberations are private.

Li Ka-shing

Photographer: Justin Chin/Bloomberg

It’s not clear what levers China can pull to block the deal, given that ...