Chinese ship engine maker Hudong Heavy Machinery says it will issue new shares to buy shipbuilding assets that analysts say will pave the way for a listing of its state parent, according to Reuters.
Hudong's parent, China State Shipbuilding Corp was expected to list Hudong in Hong Kong after completing the deal to gain wider access to the domestic and overseas capital market, analysts said.
CSSC, which builds naval and civilian ships, is the world's No3 builder of ocean-going vessels by capacity, behind Hyundai Heavy Industries and Japan's
Imabari Shipbuilding, according to
shipbrokers Clarkson.
The Chinese state-run firm aims to become the world's No1 shipbuilding group in 2015 by building two shipbuilding bases - one in Shanghai and another in Guangzhou - to boost capacity, according to its Web site.
China has been pushing major state firms to list all their assets on the stock market in a bid to curb the power of unlisted parent firms over private shareholders, and boost the global competitiveness of its state sector.
Source: Reuters