Beijing yesterday announced a management shake-up at China Ocean Shipping (Group) (Cosco) and said it would allow the company to operate independently of the Ministry of Communications.
The move, part of the central government's intensifying drive to separate government from business, looks set to have ramifications throughout the red-chip sector.
The Ministry of Communications' other flagship arm, China Merchants Holdings, is expected to undergo a similar restructuring.
Cosco, the mainland's biggest shipping company, controls locally listed Cosco Pacific and Cosco International Holdings, while China Merchants controls red chip China Merchants Holdings (International).
Cosco president Chen Zhongbiao is promoted to group chairman, taking over the position traditionally held by the communications minister.
The announcement was made yesterday morning by Communications Minister Huang Zhendong and Vice-Minister Hong Shanxiang at Cosco's Beijing head office.
