CHINA Cosco Holdings is in negotiations to issue new A shares to its parent company, China Ocean Shipping Group, the firm has announced on the Hong Kong Stock Exchange Website.
The statement did not reveal the purpose of the share issue but speculation surrounding the shares' suspension since Wednesday in Shanghai and Hong Kong suggested it was part of China Cosco's plan to buy its parent's dry-bulk shipping business. The Hong Kong shares went up by 6.8 percent to close at HK$13.58 (US$1.80), after trading resumed on Thursday, beating the Hang Seng Index by 9.6 percentage points.