Panama Strikes Down CK Hutchison Port Contract in Blow to China

Panama’s top court has ruled that the contract granted to Li Ka-shing’s CK Hutchison Holdings Ltd. to operate two ports near the Panama canal is unconstitutional, delivering a win for Donald Trump’s drive to rein in China’s control of strategic infrastructure in Latin America.

The ruling, announced by the court late Thursday in a short post on Instagram, injected fresh uncertainty into the Hong Kong conglomerate’s long-running effort to sell off the facilities. CK Hutchison’s shares fell as much as 5.7% in Hong Kong trading Friday, the steepest drop since April.

Panama President Jose Raul Mulino said ...