Hong Kong: Just what else is China Cosco Holdings willing to hive off to keep Shanghai stock exchange regulators happy? That’s the question circulating the bourses in Hong Kong and Shanghai where the Cosco’s flagship vehicle are listed. In Shanghai China Cosco Holdings risks being put on the so called special treatment list if it announces a second consecutive year of losses. Financial results for 2012 are due out shortly. A third consecutive year of losses could mean expulsion from the Shanghai stock exchange. To bolster results China Cosco Holdings has this week announced plans to sell Cosco Logistics back to parent Cosco Group. Investors have reacted negatively to the plan with China Cosco Holdings’ share price falling further this week.
However, the RMB7bn gain that is mooted from this logistics sale might not be enough to swing China Cosco Holdings back into profit. Speculation is mounting that some of the division’s bulker holdings will also be sold off to its Beijing parent. [14/03/13]
