China ship firm CIMC to shift listing to Hong Kong

Last Updated: 10:30 pm ET  NOV 28, 2012

SHANGHAI–China International Marine Containers (Group) Co. is set to become the first Chinese company to transfer its listing to Hong Kong from China’s B-share market after receiving approval from the Hong Kong stock exchange to list in the city.

In a statement Thursday, CIMC said its Shenzhen-listed B shares will be suspended from Friday. The state-owned container ship maker didn’t specify when it expects to start trading in Hong Kong but a person familiar with the transaction told Dow Jones Newswires last week that CIMC shares will start trading in Hong Kong Dec. 19.

In August, CIMC, the world’s largest maker of container ships by output, said it’s seeking permission to convert its 1.43 billion B shares–valued about 14.7 billion Hong Kong dollars (US$1.9 billion) — into Hong Kong-listed stock by way of introduction, and will raise no additional funds in the process.

Both Shenzhen-listed B shares and Hong Kong-listed H shares are denominated in Hong Kong dollars.

China’s Class B shares, traded on the Shanghai and Shenzhen stock exchanges, are denominated in either U.S. dollars or Hong Kong dollars.

CIMC said earlier it wants to shift its listing because extremely slow trade in its B shares has hurt their value. A Hong Kong listing would also help internationalize its business.

CIMC’s B shares ended up 0.1% at HK$10.25 Wednesday. The company has said it will offer a cash option for shareholders who reject the conversion listing and will buy back their shares at HK$9.83 each.

The company has 2.66 billion outstanding shares, including 1.23 billion yuan-denominated A shares, which have traded on the Shenzhen Stock Exchange since 1994.

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