Officials in Beijing and Hong Kong strongly objected on Tuesday to a proposed sale of key Panama Canal ports to a consortium spearheaded by BlackRock, triggering a sharp decline in the stock value of CK Hutchison, the Hong Kong-based conglomerate currently holding the assets.

Although it remains unclear how regulatory authorities could obstruct the deal—since the ports in question are beyond the jurisdiction of mainland China and Hong Kong—analysts suggest that Beijing’s firm opposition could derail the transaction.

When questioned at a routine press conference about whether China was investigating the planned sale, Foreign Ministry spokesperson Mao Ning avoided a direct response but made China’s stance unambiguous.

“China has consistently and resolutely opposed economic coercion, hegemony, and bullying tactics that violate the legitimate rights and interests of other nations,” she stated.

Her remarks echoed those of Hong Kong’s Chief Executive, John Lee, who earlier in the day declared, “We oppose any abusive use of coercion or intimidation in global trade and economic relations.”

Bloomberg reported that multiple Chinese government agencies, including the nation’s top market regulator, have been ordered to scrutinize the deal for possible security threats or violations of antitrust laws.

With uncertainty looming over the agreement, CK Hutchison’s shares plummeted as much as 5% on Tuesday, reflecting market anxiety. The proposed $22.8 billion transaction, still in its early stages, would see BlackRock’s investment group acquire the ports of Balboa and Cristobal—strategically positioned on either end of the canal—along with CK Hutchison’s controlling stake in 43 additional ports spanning 23 countries.

Hong Kong, a former British colony that reverted to Chinese sovereignty in 1997 under a unique “one country, two systems” framework, has undergone dramatic shifts since the enactment of a sweeping national security law in 2020, reshaping its political, legal, and economic landscape.