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.