March 27 (Reuters) - China has instructed state-owned

firms to pause new deals with businesses linked to Hong Kong

billionaire Li Ka-shing and his family after his plan to sell

two ports in Panama to a BlackRock ( BLK )-led consortium, Bloomberg

News reported on Thursday, citing people familiar with the

matter.

CK Hutchison ( CKHUF ), the telecoms-to-retail conglomerate

owned by Li, has been caught in China's crosshairs in a highly

politicised deal with the BlackRock ( BLK )-led group, which

includes selling assets near the strategically important Panama

Canal. The deal is expected to garner the firm more than $19

billion in cash.