Beijing has signalled it will turn to its anti-monopoly law to review Hong Kong-based CK Hutchison Holdings’ controversial deal to sell its strategic Panama and other ports but legal academics told the Post it could be challenging for it to prove a “real risk” to competition.

Experts and observers warned that the move could also come with a significant political cost, further worsening Sino-US tensions and possibly dealing a blow to Hong Kong’s reputation as an international business hub.

Hong Kong tycoon Li Ka-shing’s CK Hutchison surprised markets earlier this month by announcing it was selling all its overseas port operations to a group led by investment firm BlackRock in a deal worth US$23 billion, with the conglomerate set to receive US$19 billion in cash.

Beijing’s key offices overseeing the city’s affairs issued multiple warnings against CK Hutchison and slammed the transaction for harming the national interest ahead of April 2, when both sides were due to finalise the deal.

Chief Executive John Lee Ka-chiu had also said concerns among residents sparked by the deal deserved “serious attention” as he made clear all transactions had to abide by all laws.

Sources told the Post on Friday that the April 2 deadline would not be met, without disclosing further details as to whether the deal would be called off or proceed on altered terms.