Richard Li’s China insurance expansion talks stall amid backlash to father’s port sale plan

[HONG KONG] Billionaire Richard Li’s efforts to expand his insurance business into mainland China have been put on hold after Beijing reacted with fury to his father Li Ka-shing’s plan to sell a suite of global ports to US firm BlackRock, Bloomberg News reported on Thursday (Jul 10).

Richard, business tycoon Li Ka-shing’s younger son, was in advanced talks to secure an insurance licence in China, the report said, citing people familiar with the matter.

The discussions were suspended shortly after the port sale was announced in early March amid growing uncertainty over Beijing’s stance on the deal, the report said.

A deal would have given FWD Group, Li’s insurance firm, long-sought access to the lucrative Chinese market, possibly through an acquisition or partnership with a mainland insurance firm, it said.

Reuters could not immediately verify the report. FWD Group declined to comment.

Bloomberg had reported in March that China has instructed state-owned firms to pause new deals with businesses linked to Li Ka-shing and his family after his plan to sell two ports in Panama to a BlackRock-led consortium.

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FWD Group raised US$442 million through an initial public offering in Hong Kong earlier this week. REUTERS