Many of Hong Kong’s biggest property tycoons are staying out of a keenly watched residential property sale by the US government to “stay onside”, as the asset becomes a “hot potato” amid worsening US-China relations.

Li Ka-shing’s CK Asset Holdings, the city’s second-largest developer, submitted an offer for 37 Shouson Hill Road, the company said in an email reply. Sun Hung Kai Properties, the city’s biggest, declined to comment on its position.