China CSSC Holdings Facing Delisting amid Losses
- Business & Finance
Chinese shipbuilder China CSSC Holdings Limited, a unit of China State Shipbuilding Corporation, is facing a risk of being delisted from the Shangai Stock Exchange amid continued losses.
As informed, the company is expected to report losses between RMB 2.2-2.5 billion for 2017. This is the second year in a row that the company suffers poor business performance as in 2016 the shipbuilder reported RMB 2.6 billion loss.
In line with the listing rules of the Shanghai Stock Exchange, the company’s shares could be delisted, CSSC said in a regulatory filing.
Chinese shipbuilding sector has been hit hard by a prolonged downturn in the shipping industry as owners abstained from ordering amid tonnage oversupply and financial constraints stemming from the pulling out of banks from the market.
As a result, the shipbuilders have struggled to ensure financial stability as they turned to bringing in investors to salvage their ailing yards.
Just last week, China State Shipbuilding Corporation said that a capital injection worth USD 1.6 billion is expected to be secured from three new investors, those being China Life, CPIC Property and PICC, for four of its shipyards.
The yards expected to receive the cash injections are Shanghai Waigaoqiao, Chengxi Shipyard, Guangzhou Shipyard International and Huangpu Wenchong.
World Maritime News Staff