HomeHome
About usAbout us
PublicationsPublications
Yangtze Business NetworkYangtze Business Network
Business toursBusiness tours
ConferencesConferences
ConferencesConferences
Yangtze KnowledgeYangtze Knowledge
Contact usContact us

 
     
2014
2013
2012
2011
2010
2009
2008

News

SinoTrans Yangtze Shipping companies likely to be delisted

8 January 2014
Several local media reports predict that two subsidiaries of SinoTrans Yangtze Shipping are likely to be delisted from the Shanghai and Shenzhen stock exchanges, whose regulations stipulate that such action must follow three consecutive years of losses. If it turns out to be true, they would be among the first ever to suffer such a fate in China and would be a huge embarrassment to one of China’s big four shipping lines, according to China Water Transport News.

ST Yangtze Oil, listed in Shanghai in June 1997, specialises in transporting and storing oil and petrochemical products and has already reported losses for three consecutive financial years. A promise of reform and asset injections from company shareholders has bought them some time but analysts doubt that the management are able to turn the business around by April, the usual reporting season. ST Yangtze Oil was Rmb984m in the red, according to its statement for the third quarter of 2013.

ST Yangtze Phoenix, listed in Shenzhen in October 1993, is involved in shipping general cargo and containers and has reported two consecutive years of losses. It was also in the red for the first three quarters of 2013, amounting to nearly Rmb500m. Analysts believe it would be “a miracle” if the last quarter’s performance was strong enough to pull the company into surplus.

There is particular concern in the local media that a delisting may cause considerable shareholder resentment, possibly leading to social unrest.

     
Copyright © Yangtze Business Services 2018           Tel: +44 (0)20 8874 3217  info@YangtzeBusinessServices.com


Website by HOL