Li Ka-shing's Ports Deal Sparks Insurance Expansion Halt in China

Richard Li's insurance business expansion into mainland China has stalled due to Beijing's reaction to his father Li Ka-shing's plan to sell global ports to a US-backed group. Talks were suspended amid uncertainty over Beijing's opposition to the Panama ports deal. Buying or partnering with a mainland insurance firm would have allowed FWD Group entry into the lucrative mainland market. The setback reflects the continued fallout from the proposed sale of 43 ports, which has become a proxy battleground for growing US-China rivalry.

Billionaire Richard Li's ambitious plans to expand his insurance business into mainland China have been temporarily halted due to Beijing's reaction to his father Li Ka-shing's controversial plan to sell global ports to a US-backed group. The setback underscores the ongoing tension between the US and China, as the ports deal has become a proxy battleground for their rivalry.

Richard Li, son of Li Ka-shing, was in advanced discussions to secure an insurance license in China for his company FWD Group Holdings Ltd. However, talks were suspended after Beijing expressed displeasure with Li Ka-shing's proposed sale of 43 ports, including two in Panama, to a consortium led by Italian billionaire Gianluigi Aponte and backed by US firm BlackRock Inc. [3]

The ports sale, valued at over $19 billion, has drawn criticism from pro-Beijing newspapers and the Chinese market watchdog, who view it as a betrayal of national interests and a kowtowing to US pressure. The deal has put Hong Kong's most prominent family empire, Li Ka-shing's CK Hutchison Holdings Ltd., in Beijing's crosshairs [3].

FWD Group made its trading debut in Hong Kong on July 7, 2025, following an initial public offering (IPO) that raised HK$3.5 billion ($442 million). The insurer plans to use the proceeds to reduce debt, support growth, and enhance its digital capabilities. However, the company's expansion into the lucrative mainland market remains on hold [1, 2].

The setback reflects the broader geopolitical tensions between the US and China, with the ports deal serving as a symbol of their ongoing rivalry. Despite the suspension of talks, FWD Group continues to explore opportunities to enter the mainland market, with CEO Huynh Thanh Phong stating that the company is prepared to walk away from projects that do not make financial sense [3].

References:
[1] https://fortune.com/asia/2025/07/07/richard-li-fwd-rises-hk-debut/
[2] https://finance.yahoo.com/news/fwd-group-debuts-hong-kong-142454776.html
[3] https://www.bloomberg.com/news/articles/2025-07-10/li-ka-shing-s-ports-deal-trips-up-son-s-china-insurance-ambition