SHANGAI: China’s two leading shipping conglomerates, Cosco Group and China Shipping Group (CSG), have announced that the shares trading for their Shanghai-listed units will continue to be suspended, pending a major announcement.
The much anticipated announcement is likely to related to the potential merger of the two state-owned shipping groups, as they have mentioned that the matter is related to the two companies.
Trading of the Shanghai-listed units of Cosco and CSG have been suspended since 10 August, and the trading suspension was first extended on 17 August, before the second extension starting 24 August.
The potential merger of Cosco and CSG, if materialised, is part of China’s plans to restructure its state-owned enterprises, not just in shipping but other industry sectors as well.
