HONG KONG, Aug 28 (Reuters) - COSCO Shipping Ports ( CSPKF ) is

facing "challenges" with its international investments amid

pressures from the U.S. trade war, its managing director said in

Hong Kong on Thursday.

Wu Yu told an earnings conference that while there were

challenges from the United States, the state-owned global

shipping and ports conglomerate was "very focused on development

opportunities in emerging and regional markets, as well as in

some key hubs".

The company said that even though China's exports to the

U.S. had dropped, those to emerging markets had increased, so it

was seeking acquisition opportunities in Southeast Asia, South

America, Africa and the Middle East.

COSCO said challenges it faced included a "volatile

geopolitical environment" and, when expanding abroad, a

tightening regulatory environment against foreign investment in

many countries. High bidding prices from other port competitors

were another headwind.

Wu declined to comment, however, when asked about reports

that COSCO might become an investor in CK Hutchison's ( CKHUF )

sale of its global ports assets.

An initial plan by CK Hutchison ( CKHUF ) to sell its $22.8 billion

ports business to a group led by the U.S. firm BlackRock ( BLK )

and Italian Gianluigi Aponte's family-run shipping firm MSC

faced heavy criticism from Beijing.

CK Hutchison ( CKHUF ) has said it is in talks with a Chinese "major

strategic investor", without providing a name, to join the

consortium. Sources have said the investor is COSCO - one of the

world's dominant, vertically integrated marine transportation

firms.

The sale plan covered 43 ports in 23 countries, including

two near the Panama Canal, where U.S. President Donald Trump has

called for a reduction in Chinese influence.