Shanghai: As China’s stock market plunge continues, the central government is making efforts to save the market. China Securities Regulatory Commission (CSRC) has sent a notice to the parent groups of listed companies asking them to work together to stabilize the stock market by maintaining or increasing shareholdings in their listed subsidiaries.
A number of major groups in the shipping, shipbuilding and the offshore sector, including Cosco, CSSC, CSIC, CNPC, CNOOC, China Merchants, Sinotrans & CSC, have all promised not to sell shares in their listed companies within the next six months.
State-run shipping giant China Shipping Group has also pledged to spend RMB305m ($49.1m) to increase its shareholdings in two listed subsidiaries of the group, China Shipping Development (CSD) and China Shipping Container Lines (CSCL).
In the meantime, Dalian Port, Lianyungang Port, Rizhao Port have all announced that their parent company’s will increase their shareholdings.