Tesla (TSLA) +2% Tesla shares bounced after a rough Monday, despite being down 36% in Q1 — the worst Q1 in company history. Investors are now eyeing its Q1 delivery report due Wednesday, with Street estimates hovering around 380,000 units . Analysts have been revising expectations lower amid backlash over Elon Musk’s role in Trump’s administration. Chinese EV Makers Up XPeng (XPEV) +1.6% : Delivered 33,205 vehicles in March — its fifth straight 30k+ month. NIO (NIO) +1.6% and Li Auto (LI) +1.4% also gained on strong March deliveries. Nvidia (NVDA) -0.6% Still under pressure after a 19.3% Q1 drop , its worst since 2022. Investor worries over AI spending, tech valuation, and trade tensions are weighing heavily. Johnson & Johnson (JNJ) -5% Fell after a Texas judge dismissed J&J’s third bankruptcy attempt to settle talc-related lawsuits via Chapter 11. PVH Corp (PVH) +18.9% Shares surged after Q4 earnings beat expectations ...
Key Points:
Directive from Beijing: Chinese state-owned enterprises have been ordered to pause any new business collaborations with companies linked to Li Ka-shing and his family, according to sources familiar with the matter.
Reason Behind the Move: The decision comes after CK Hutchison Holdings, a flagship company of Li’s empire, announced plans to sell two Panama ports to a BlackRock-led consortium. The deal has geopolitical implications, with US President Donald Trump framing it as a strategic win against Chinese influence in the region.
No Ban on Existing Deals: The pause applies only to new collaborations. Existing business relationships with Li’s companies are not affected, although Chinese regulators are reportedly conducting a review of the family’s investments both in China and abroad.
$19 Billion Deal Under Scrutiny: The sale, part of a larger divestment of 43 port assets globally, could generate over US$19 billion in proceeds for CK Hutchison. China is reportedly probing the transaction for national security and antitrust risks.
Li's Global Business Footprint: Despite the potential pressure, CK Hutchison derives only 12% of its revenue from Hong Kong and mainland China. The majority of its businesses are based in Europe, North America, and Australia, across retail, telecom, utilities, and infrastructure.
Implications for Other Ventures:
CK Asset, led by son Victor Li, still has notable exposure in China, with one-fifth of its rental propertieslocated on the mainland.
Richard Li’s Pacific Century Group (parent of FWD Insurance) also has growth ambitions in China, which could be impacted depending on the depth of this pause.
Interestingly, Richard was still invited to a recent high-profile summit in Beijing, suggesting there is no blanket ban on the family.
Investor Sentiment Mixed: CK Hutchison shares initially dipped but rebounded, reflecting market optimismabout the Panama deal’s completion. CK Asset shares fell 1.09%.
Comments
Post a Comment