Greater ChinaShipyards

Rongsheng announces ‘substantial disposal’, suspends trading of shares

Hong Kong: Bust shipbuilder China Rongsheng Heavy Industries Group Holdings suspended trading of its shares this morning on the Hong Kong Stock Exchange ahead of an announcement regarding a “substantial disposal.” By the time of the exchange closing this afternoon the shipbuilder had yet to reveal further details.

Fellow private Chinese shipbuilder Yangzijiang Shipbuilding admitted earlier this week that Beijing has asked it to take a stake in the Jiangsu yard, which has amassed debts of more than $3bn. Chinese banks are now calling in Rongsheng’s loans, Splash understands, necessitating an urgent sell off of some of Rongsheng’s assets.

Last week Rongsheng cancelled a warrant sale after a key planned investor, Wang Ping, was detained by authorities as part of China’s ongoing anti-graft campaign.

News that Yangzijiang might come to the rescue of Rongsheng has not been met by universal approval by shipowners desperate to curb China’s excessive yard capacity to try and right the blighted supply/demand balance effecting much of shipping in 2015.

“Please can they close Rongsheng once and for all,” one shipowner confided to Splash today.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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