From Financial Times:
A senior Chinese official intervened to block the $7bn sale of PCCW telecommunications group’s assets to foreign investors in the most flagrant breach of the territory’s commercial autonomy since Beijing resumed sovereignty in 1997, a Financial Times investigation has established.
The veto was exercised by Liao Hui, head of the State Council’s Hong Kong and Macao Affairs Office, and a member of the Chinese Communist party’s ruling Central Committee. Mr Liao and departmental colleagues signalled their opposition to several senior executives close to the deal who have spoken to the FT.
The intervention torpedoed delicate negotiations between PCCW and two rival bidders, Australia’s Macquarie Bank and TPG-Newbridge, the US private equity group, which proposed buying the company’s fixed-line, mobile, broadband and online television assets in June.[Full Text]
-Also read Timeline: Behind the Li family feud
