Sinotrans completes further re-structuring

Sinotrans Shipping has completed its privatisation after being delisted from the Hong Kong Stock Exchange. Reports that a decision was made to make the company private first filtered out in October last year. The move will consolidate China Merchant Group’s control over the company, which first began moves to integrate the Sinotrans group into its structure in 2015.

The key reason for the company’s decision is thought to be the weak performance of the company’s shares. This is partly as a result of trade tensions between the US and China. However, other clouds over the shipping industry, including fleet overcapacity, have weakened the market over a number of years.

As part of wider structural reforms, Sinotrans Air Transportation Development Corporation Limited and Sinotrans Limited have been merged through a share exchange on the Shanghai Stock Exchange. China Merchants group stated that air freight forwarding would be core to Sinotrans’ future business.

Source: Sinotrans