COSCO, China Shipping extend stock trading suspension

Merger speculation continues as CIOSCO says it is “contemplating a plan on a material event.”

   Companies affiliated with the Chinese container carriers COSCO and China Shipping on Friday said in regulatory announcements that they’ve requested further suspension of trading of their stock.
   The two companies are reportedly discussing a possible merger.
   China COSCO Holdings Co. Ltd., a listed company on the Hong Kong stock exchange, said in a filing that China Ocean Shipping (Group) Co. is “contemplating a plan on a material event involving the company”  and shares have seen suspended since Aug. 10.
   “At present, the event is in the planning process, there are still uncertainties. In order to ensure fair disclosure of information, protection of investors’ interest and avoidance of unusual movements in the share price of the company, an application has been made by the company to further suspend trading” in the company’s shares from Aug. 17 onward.
   It said it will “communicate with COSCO timely to get information about the latest progress in the plan… and make further announcement on such progress within five business days.”