Shares of Chinese shipping companies, which the country reorganized by merging several of them into two large entities, surged in late trading in Shanghai and Hong Kong.
China Cosco Holdings Co., the container shipping unit of the newly formed China Cosco Shipping Corp., jumped as much as 9.9 percent in Shanghai and 4.7 percent in Hong Kong trading. China Shipping Container Lines Co. rose by the 10 percent daily limit in Shanghai and China Shipping Development Co. jumped as much as 8.6 percent.
In December, China reshaped its shipping industry by announcing a plan to reorganize the two major groups with combined revenue of more than $40 billion. China Ocean Shipping Group and China Shipping Group will consolidate operations, the State Council’s State-owned Assets Supervision and Administration Commission said then.
China is overhauling inefficient state-run companies to bolster an economy headed for its slowest growth in 25 years. The plan seeks to shrink industries plagued by overcapacity while creating globally competitive businesses in high-value fields such as aerospace and advanced rail technology.