Shares in China Cosco, which operates the largest bulk shipping vessels in the world, fell as much as 7 per cent yesterday after it flagged a profit warning for last year and faced a potential delisting in Shanghai.
China Cosco closed at HK$4.08 yesterday, 5.1 per cent down from the previous trading day.
The Beijing-based company, which has the sixth-largest container ship fleet in the world, warned it would experience a significant loss for last year, extending the 10.4 billion yuan (HK$12.81 billion) loss in 2011, due to poor dry bulk demand and falling freight rates.
The Baltic Exchange Dry Index, which gauges various rates on bulk vessels, averaged 920 points last year, down 40 per cent from 1,549 points in 2011.
The container shipping market rebounded moderately last year but the business was still unsatisfactory, Cosco said.
China Cosco's A shares will be delisted if the company stays in the red this year.