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HONG KONG (Reuters) -A pro-Beijing Hong Kong newspaper stepped up criticism of CK Hutchison's deal to sell its Panama ports to a BlackRock-led group, sending its shares lower on Monday, as sources said the transaction, due to be signed by April 2, would be delayed. The deal has become highly politicised as the Hong Kong conglomerate is thrust into the cross-hairs of an escalating China-U.S. trade war that has deepened concerns the financial hub's edge will erode further amid geopolitical tensions. CK Hutchison's shares have dropped 12.9% since the close on March 13 - when it was first criticised by state media - to Monday's intraday low of HK$43.05, wiping off HK$24.3 billion in market value. It's currently valued at HK$167.6 billion ($21.6 billion).
The shares were down as much as 4.7% on Monday, but recovered some ground and were off 3.3% in early afternoon trade. Hong Kong's Hang Seng Index was 1.7% lower.
Reuters reported on Friday that CK Hutchison had delayed part of the sale, although sources said the deal has not been called off.
CK Hutchison has faced an increasing barrage of criticism from China on its decision to sell most of its $22.8 billion ports business to the U.S.-led group.
The sale is expected to garner the firm more than $19 billion in cash.
Pro-Beijing Ta Kung Pao published on Monday a full page of news articles that included comments from Hong Kong politicians and Chinese lawyers urging the Hong Kong conglomerate to rethink the transaction and supporting Chinese regulators' decision to review the deal.
It cited a senior partner of Kangda Law Firm as saying that other than reviewing the anti-trust law, China could also evaluate any security risks to its port system data using its national security law and data security law.
The newspaper has published a series of commentaries criticizing the deal, depicting it as a betrayal of China. One of its editorials has said the controversial port sale could potentially violate Hong Kong's national security laws, known as Article 23.
CK Hutchison did not immediately respond a request for comment from Reuters.
Chinese authorities have reacted negatively to the sale plans, while the deal was hailed by U.S. President Donald Trump who said he wants to retake control of the strategic waterway.
China's market regulator said on Friday it would carry out an antitrust review on the Panama port deal in accordance with a law protecting fair competition to safeguard the public interest.
Definitive documentation for the two port operations near the Panama Canal was expected to be signed by April 2, according to the sale announcement on March 4.