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China to integrate state-owned shipping companies
POSTED: 8:29 a.m. EDT, May 29,2007
The Chinese central government plans to integrate shipping businesses that are directly under its control, according to a source from a government-owned shipping company quoted by Xinhua News Agency.
The source said integration proposals have been submitted to the government and are awaiting approval, but offered no further details.
There are five major government-owned shipping companies in China: Cosco, China Shipping, Sinotrans, China Changjiang National Shipping Group (CSC) and China Merchants Energy Shipping, a subsidiary of China Merchants Group.
An analyst from a mainland brokerage said integration is in line with China's strategic interest and will improve the shipping industry's status in the world by providing the bulk to better protect from risk.
The China International Capital Corporation Limited has already suggested merger between CSC and Sinotrans, a proposal considered most likely by industry analysts because the companies both have cruise businesses.
As for Cosco and China Shipping, Luo Xiong, an analyst from China Merchants Securities, said the two giants are not likely to be involved in the integration because their businesses are in stable condition. He also doubted China Merchants Group would be involved because it is a Hong Kong registered company with a long history of over 100 years. |
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