China shipping groups merger plan erases US$900 million in value

Beijing

CHINA'S biggest shipping reform failed to enthuse investors as two major companies lost about US$900 million in total market value after the government proposed combining its two key ocean liner groups.

China Shipping Container Lines Co and China Cosco Holdings Co led the declines with drops of as much as 30 per cent, the most on an intraday basis in more than 10 years. The shares had been halted from trading since August pending an announcement by their parent companies.