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Toh Han Shih

China Cosco said yesterday executive director Xu Minjie had resigned following an investigation by the mainland authorities.
In a statement to the stock exchange, the bulk shipper said Xu (pictured) resigned because of "personal reasons".
Shares in the company were earlier sold down after it admitted Xu was being investigated.
Xinhua also reported yesterday, citing unnamed sources, that former China Cosco chairman Wei Jiafu's movements had been restricted by the authorities.
Wei is a former director of the Hong Kong Mercantile Exchange, in which China Cosco's state-owned parent, China Ocean Shipping (Group) owns a 10 per cent stake. Hong Kong police are currently investigating false documents linked to the mercantile exchange.
China Cosco fell as much as 6.9 per cent before closing down 5 per cent at HK$3.58, in one of the heaviest trading in weeks. In Shanghai, it dropped 3.85 per cent to 3 yuan (HK$3.81). Its sister company, Cosco Pacific, declined 2.5 per cent to HK$11.
Xu was vice-chairman and managing director of Cosco Pacific from 2007 to July 2011.
On November 7, China Cosco's board was informed by its parent that Xu was under investigation by the authorities, China Cosco said on Thursday night.
"People's perception is the investigation has to do with a lot of irregularities in this company. In the past, it made quite a few funny investments," said a Hong Kong analyst.
For example, in 2008, China Cosco chartered vessels at prices far above the market rates, which benefited suppliers of the vessels, said the analyst.
A Shanghai analyst said: "There are problems with the management's policies."
In 2008, China Cosco built and chartered many ships, far more than other shipping companies, the Shanghai analyst said.
China Cosco's capital expenditure was 18 billion yuan in 2008, far higher than 12.9 billion yuan in 2007. The amount in the following four years ranged between 8.5 billion yuan and 11.4 billion yuan.
The high depreciation from the heavy spending on ships since 2008 also eroded the firm's profits, the Shanghai analyst said.
China Cosco suffered losses in the past two years. If it suffers a loss again this year, it faces delisting from the Shanghai stock exchange, unless it can convince the authorities it can return to profit. A Bloomberg consensus forecast the firm would book a loss of 4.73 billion yuan this year.


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Cosco Shipping

China Cosco director quits amid probe

Xu Minjie

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China Business

Shares in bulk shipper fall 5pc as ex-chairman's movements are also restricted on the mainland


China Cosco said yesterday executive director Xu Minjie had resigned following an investigation by the mainland authorities.


China Cosco director quits amid probe

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Shares in bulk shipper fall 5pc as ex-chairman's movements are also restricted on the mainland

Shares in bulk shipper fall 5pc as ex-chairman's movements are also restricted on the mainland