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.