Shipbuilder suspends trading after layoffs

China’s largest private shipbuilder, China Rongsheng Heavy Industries (1101.HK), suspended trading of its shares on Thursday after the media revealed that it had laid off 8,000 employees in recent months, Reuters reported. The company’s shares closed down 10% at HK$1.06 on Wednesday. While a company official denied that the layoffs were a sign of financial distress, the company’s books show that its short-term debt is seven times its cash resources. Experts say that a third of China’s 1,600 ship yards are in danger of closing within the next three to five years due to overcapacity, Bloomberg reported.