BEIJING, April 27 (Reuters) - China's top market

regulator said on Sunday it was paying close attention to CK

Hutchison's ( CKHUF ) planned sale of most of its ports

operations to a BlackRock ( BLK )-led consortium and parties to the deal

should not try to avoid an antitrust review.

The sale by the Hong Kong conglomerate, which contains two

ports along the strategically important Panama Canal, has become

highly politicised amid intensifying U.S.-Sino trade tensions.

"No concentration of undertakings shall be implemented

without approval, otherwise legal liability will be incurred,"

the State Administration for Market Regulation said in a

statement.

The statement was in response to a Wall Street Journal

article on April 16. The MSC shipping empire, which is part of

the BlackRock ( BLK ) consortium, has held discussions on moving ahead

with the bulk of the deal while disputes over the two Panama

ports are resolved, the report said, citing people familiar with

the matter.

The deal has two components with different ownership

structures - one for the Panama ports and one for everything

else, the report added.

U.S. President Donald Trump has repeatedly said he wants to

take back the Panama Canal and has hailed the deal as a

"reclaiming" of the waterway. Chinese state media, however, have

criticised the planned sale as a betrayal of China's interests.

Trump said on Saturday that American military and commercial

ships should be allowed to travel through the Panama Canal and

Suez Canal free of charge.

Tycoon Li Ka-shing's CK Hutchison ( CKHUF ) announced last month it

would sell its 80% holding in the ports business which

encompasses 43 ports in 23 countries. The business has an

enterprise value, which includes debt, of $22.8 billion.

Singapore's PSA International, which owns the other 20%, is

also exploring a sale of its holding, sources have said.

Overall the Hong Kong conglomerate has interests in 53

ports. Ports in Hong Kong and mainland China were not included

in the deal.