Ocean carrier COSCO continues to give no details other than to say it is “contemplating a plan on a material event” but claims trading suspension in not expected to exceed an additional month.
Trading in the shares of China COSCO Holding Co. and China Shipping Container Lines Ltd. remains suspended amid rumors that the two companies are contemplating some sort of merger.
In a notice to the Hong Kong Stock Exchange, COSCO continues to give no details other than to say “contemplating a plan on a material event” and that the event is “under intensified planning.”
With shares suspended since August 10, COSCO has asked trading to remain suspended but said, “It is expected remaining time of the suspension of trading will not exceed one month, and then the company then will decide whether to continue suspension based on the planning progress of material issues.”
On Sunday, China’s State Council and Communist Party issued guidelines for reforms of state-owned enterprises. (SOEs), which the state news agency Xinhua said was “the latest move from the government to invigorate torpid SOEs.”
“China will modernize SOEs, enhance state assets management, promote mixed ownership and prevent the erosion of state assets,” said Xinhua, and seek to “improve the competence of SOEs and turn them into fully independent market entities.”
While various companies in the COSCO and China Shipping groups have private shareholders, a 2003 chart of ownership of companies within the conglomerates published by Alphaliner showed the State-owned Assets Supervision & Administration Commission of the State Council of China as holding large, sometimes controlling, stakes as well.
Trading in COSCO, China Shipping shares remains suspended
