Chief Executive John Lee emphasised on Tuesday that the SAR government is against the use of pressure or menacing tactics or inappropriate political means to affect trade matters in the wake of a controversial court ruling in Panama.

Lee was addressing last month's move by the Central American nation's Supreme Court to annul Hong Kong company CK Hutchison's contract to operate ports at either end of the Panama Canal by ruling that the concessions granted were "unconstitutional".

Speaking ahead of the Executive Council's meeting on Tuesday, the CE noted that the Commerce and Economic Development Bureau had earlier met Panama's consul-general to express the SAR's strong disapproval of and dissatisfaction with the ruling.

"Panama took a U-turn in legitimate trade relations, undermining its credibility. This will have far-reaching repercussions in the business climate and economic development there. It has also seriously affected international trade rules," Lee said.

"The SAR government urges the Panamanian government to respect the spirit of contracts, provide a fair and just environment for legitimate businesses operating there, and ensure the legitimate rights of enterprises are free from any interference. Hong Kong enterprises operating and investing in Panama should be treated and protected in a fair and reasonable manner."

Lee believes the ruling has affected the confidence of Hong Kong investors in conducting business matters in the Central American nation and that they will review both existing and future investments there.

The Ministry of Foreign Affairs had said the central government would adopt any necessary measure to safeguard the legitimate rights and interests of Chinese enterprises, the chief executive noted, adding that the central government will have the full cooperation of Hong Kong.