CSSC shares restricted and face delisting

CSSC shares restricted and face delisting

China State Shipbuilding Corporation (CSSC), one of the two state-run shipbuilding conglomerates in China, has announced that Shanghai Stock Exchange will implement a delisting risk warning on the company’s shares starting from April 24 due to it suffering losses for two consecutive years.

According to Chinese listing rules, the stock of companies that register losses for two consecutive years will be put into the “special treatment” category, which has a daily trading limit of 5%, and the company’s shares will be delisted from the stock exchange if it registers losses for three consecutive years.

CSSC reported a net loss of RMB2.3bn ($365.4m) for the year of 2017, narrowed from a loss of RMB2.6bn in 2016.

Speculations of a merger between two major Chinese shipbuilding giants CSSC and CSIC resurfaced at the end of March after both groups completed debt-for-equity swap measures with strategic investors in the past year, which is said to be paving the way for the potential merger.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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