PYI Corporation, the Hong Kong-based bulk cargo port and infrastructure operator, has proposed to raise HK$362m (US$46.7m) from a rights issue to fund its stake in Yichang Port Group, reported Lloyd’s List. Last September, PYI signed an agreement to take a 51 per cent stake in Yichang Port Group, an important transhipment hub in the middle reaches of the Yangtze.

PYI has an established presence in the Yangtze ports sector, being the largest shareholder in Nantong Port Group in Jiangsu province.

Many Yangtze port cities, however, are increasingly concerned about ceding majority control to outside parties. They appreciate that port development plays a vital role in rejuvenating local industries but that the commercial interests of outside majority shareholders can sometimes hinder rather than facilitate industrial expansion.