Cosco Shipping Energy Transportation (CSET), the tanker unit of Cosco Shipping Group, has resumed stock trading on both the Shanghai and Hong Kong stock exchanges today following a trading suspension since September 26.
In an announcement, the company confirmed that the trading suspension was related to the US sanctions on its Dalian subsidiaries.
Last week, the US Department of Treasury blacklisted six Chinese companies including two Cosco subsidiaries for allegedly violating US sanctions by transporting Iranian oil.
The sanctions have caused chaos in the tanker markets as oil traders cancel bookings with Cosco and chase new tonnage, causing spot rates for VLCCs to leap by more than 25% on Friday.
Cosco said it is comprehensively organising its various businesses, assessing the relevant impact, and conducting various response work.
“During the course of its development and regardless of any changes to the external operational environment, the company will continue to adhere to applicable laws and regulations in the conduct of its business operations, and strive to protect the interests of its shareholders and investors,” CSET said.
The share price of CSET plunged around 10% in Shanghai and 22.7% in Hong Kong today.