Ningbo Marine has announced that a company restructuring plan has been rejected by China Securities Regulatory Commission (CSRC) and it has aborted the restructuring.
Ningbo Marine announced in September that it was planning to acquire all shipping assets from its controlling shareholder Zhejiang Energy Group.
The company said the restructuring aimed to eliminate competition between the company and the shipping subsidiaries of Zhejiang Energy Group.
However, CSRC claimed that the restructuring didn’t meet the requirement of the latest back-door listing rules.
China’s central government has started to tighten controls on back-door listings and release a new regulation in September.
Ningbo Marine reported revenues of RMB493m ($74m) and a net profit of RMB6.37m ($955,010) for the first half of 2016, down 7.71% and up 44.94% year-on-year respectively.