Haisheng soars 10pc on plan to acquire parent's assets
Shares of China Shipping Haisheng, the Shanghai-listed subsidiary of China Shipping Group, rose 10 per cent yesterday on the news of an asset injection from its parent.
Haisheng, a Hainan-based bulk shipping company with about 12 bulk vessels, will rapidly increase its fleet size by acquiring quality assets from its parent company, according to its announcement to the Shanghai Stock Exchange.
'It is a very long-term agreement and we don't have any solid timetable for the expansion of the fleet yet,' a Haisheng spokesman said yesterday.
The shares, which have gained 74 per cent this year, rose to 7.24 yuan, their highest close since April 19, 2004.
The bulk carrier made the announcement after a strategic agreement signed by China Shipping Group and the provincial government of Hainan, where Haisheng accounts for 50 per cent of coal transport.
China Shipping Group will further support Haisheng in securing for the island sufficient capacity for coal, iron ore, industrial and agricultural transport.
'We are to provide a high-quality transport service for the petrochemical, paper-making, agricultural and auto-making industries in Hainan,' China Shipping Group president Li Shaode said.
Hong Kong-listed China Shipping Development bought 42 dry bulk cargo vessels from its parent China Shipping Group for 2.5 billion yuan in November last year.
Shares of the company have gained almost one-third since then. They fell 0.87 per cent yesterday to close at HK$11.32.