Shanghai: As it desperately tries to avoid an embarrassing delisting in Shanghai for repeated annual losses China Cosco Holdings announced Monday plans to sell Cosco Logistics to its parent China Ocean Shipping (Group) Co.
The sale would generate a "reasonable capital gain" China Cosco maintained in a release.
Under China's listing rules, a company's stock can be put in the so-called "special treatment" category if the company posts losses for two consecutive years, limiting daily trading movement of shares to 5% from the standard 10%. Three years of losses could result in the suspension of the listing.
Cosco Logistics' registered capital was 3.18bn yuan in 2011, according to China Cosco's annual report. [12/03/13]
