Hong Kong-listed China Shipping Development Co (CSDC) is looking to sell its 25 per cent stake in container carrier China Shipping Container Lines (CSCL). CSDC has said it will offload its stake for a nominal price of Yn1, because the container carrier has a negative asset value of Yn200m. CSDC originally paid Yn450m for its holding.
The move comes as CSDC seeks more profitable shipping sectors. It is expanding its tanker fleet with a new double-hulled vessel being built at Dalian for delivery in 2005. This will bring the fleet up to six modern vessels.
Although CSDC executives talk of bleak prospects for the liner shipping sector, CSCL boss Li Kelin said he believed his company would break even in the second half of this year. Its first-half losses were Yn100m.