(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.