SHANGHAI Haixing Shipping Company, China's biggest and oldest regional shipper, is heading for a massive fund-raising exercise, and hopes to be able to float H shares both directly in Hong Kong and indirectly in New York through the issue of American Depositary Receipts (ADRs).
The shipping giant's application was filed hot on the heels of Luoyang Glass, believed to be the foremost of the 22 mainland Chinese enterprises seeking overseas listings. Both Shanghai Haixing Shipping and Luoyang are hoping to get listing approval nextmonth.
With shipping activities set to boom in eastern China, analysts agree the Shanghai-based shipping group will be viewed as a sound new prospect by investors, who have grown more selective about H shares.
''The company is still working on its flotation plan in Hong Kong. But it is hoped that the ADR could be launched simultaneously,'' vice-president Zhang Jieming said.
SHS Group, the parent of Shanghai Haixing, originated from China Merchant Group during the Ching Dynasty more than 120 years ago. It is one of the four biggest shipping groups under the Transport Ministry. The others are Guangzhou Shipping Group, DalianShipping Group and the internationally known China Ocean Shipping Company (COSCO).
COSCO, which comprises seven regional ocean shipping enterprises in China, is mainly engaged in international shipping.