China State Shipbuilding’s Parent Extends Lockup; Shares Rise
China State Shipbuilding Corp., the country’s biggest maker of vessels, undertook not to sell part of its controlling stake in listed unit China State Shipbuilding Co. for two years longer than planned, following a slump in the market.
Unit China State Shipbuilding rose as much as 7.3 percent to 79 yuan in Shanghai trading, and was at 77.66 yuan at 10:09 a.m. local time. The shares are down 69 percent this year.
China’s benchmark CSI 300 index has dropped 49 percent this year, making it one of the world’s worst-performing major markets. Beijing-based China State Shipbuilding Corp. holds 415 million shares in its unit according to Bloomberg data, or about 63 percent of issued stock.
The parent will hold 24 million shares until Aug. 7, 2010, provided the price stays below 120 yuan, the unit said in a statement to the Shanghai stock exchange today. A further 116 million stock will be kept to May 30, 2011, it said. The 140 million shares is a 21 percent stake.
About two-thirds of mainland Chinese shares are due to be released as part of a long-term plan to improve liquidity in the country’s stock markets.
Tags: Share, Shipbuilding