COSCO Put on Shanghai’s Watch List After Posting $1.5 Billion Loss

reuters logoHONG KONG, March 27 (Reuters) – China COSCO Holdings Co Ltd posted its second-largest yearly net loss of 9.6 billion yuan ($1.5 billion) in 2012 as its bulk cargo business was hit hard by a lingering industry slump due to a supply glut and weak global economy.

China COSCO, operator of the world’s largest dry bulk cargo fleet and a major container shipper, had warned of a huge loss for 2012 and planned to sell its logistics unit to its parent to lift 2013 earnings.

The net loss was wider than a market consensus forecast for a 7.2 billion yuan deficit, according to Thomson Reuters I/B/E/S and was just below a record 10.5 billion yuan loss reported in 2011.

China COSCO will be placed on a watch list by the Shanghai stock exchange following its second straight year of losses and if this trend continues for a third year, the company will face the risk of being suspended from trading in Shanghai. (Reporting by Alison Leung; Editing by Anne Marie Roantree)

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