China CSSC Holdings Ltd. and CSSC Offshore & Marine Engineering Company Ltd. both announced that their controlling shareholder, China State Shipbuilding Corp., is currently planning changes that might involve the reorganization of the company’s assets, China Securities Journal reported.
Both China CSSC Holdings Limited’s A shares and and CSSC Offshore & Marine Engineering Company Limited’s H shares will be suspended from Sept. 27, it said.
The China State Shipbuilding Corporation is known as the “Southern Boat.” It considers the military as its core business, along with ship repair, marine engineering, electrical and mechanical equipment, as well as information and control.
With the optimization of its asset structure, analysts believe the shipbuilding industry will see an intensified integration, the report said.
Shenwan Hongyuan Gr Co, a stock research and investment firm based in Shanghai, believes reforms could be carried out by the merger of North and South state owned ship enterprises with the introduction of non-state capital.
According to the China State Shipbuilding Corporation, the group has a total of three A-share listed companies. Besides China CSSC Holdings Limited and CSSC Offshore & Marine Engineering Company Limited, the third listed company CSSC Science & Technology Co. Ltd. did not have its shares suspended, the report said.
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Source: Asia Times
