Shares of the two state-owned Chinese ocean carriers have been frozen in Hong Kong for nearly a month now.
Trading in the stocks of members of the COSCO and China Shipping groups on the Hong Kong Stock Exchange remains suspended after nearly a month. Reports say the two companies are contemplating some sort of merger, but the companies have not provided details of their plans.
COSCO said in an announcement Tuesday that China Ocean Shipping (Group) Company (Hong Kong stock code 1919), the controlling shareholder of China COSCO Holdings Company Limited, is “contemplating a plan on a material event involving the Company and that shares have been suspended since August 10.”
China Shipping Container Lines Co. Ltd. notes that “the material matters are currently under contemplation and there exists uncertainty. In order to ensure fair disclosure, to protect the interest of investors and to avoid abnormal fluctuation in the share price of the Company, trading in the shares of the Company (stock code: 2866) will continue to be suspended.”
The state news agency Xinhua reported, “The joining of the five major subsidiaries of China Ocean Shipping (Group) Co and China Shipping (Group) Co － including COSCO Shipping Co, COSCO Holdings Co and China Shipping Development Co － was hinted at in a stock exchange filing” when the suspension first occurred last month.
Trading in COSCO, China Shipping stocks remains suspended
