The parent of China Shipping Development Co may sell its LNG business with the parent of PetroChina to the listed vehicle, analysts said. A China Shipping spokesman told Reuters earlier on Tuesday that the energy shipping firm would set up a joint venture to ship liquefied natural gas (LNG) with the parent of Petrochina. "We will publish a related statement tomorrow," China Shipping Development spokesman Ma Guoqiang told Reuters, declining to give details in line with exchange rules.
Trading in China Shipping shares was suspended on Tuesday in Hong Kong pending an announcement relating to an asset injection transaction, which is price-sensitive in nature, the Hong Kong exchange said.
Its Shanghai stock was also suspension on Tuesday.
China Shipping (Group) Co, the state-owned parent of China Shipping Development, and PetroChina Co Ltd, Asia's largest oil and gas producer, have been in talks to form a joint venture to ship LNG, furthering Beijing's campaign to boost use of the fuel.
Li Shaode, chairman of China Shipping Development and president of its parent, told Reuters last year that the parent's LNG ship business will be injected into the listed vehicle at an appropriate time.
The stock has fallen 18 percent this year in Hong Kong but outperformed a 25.4 percent loss in the blue chip Hang Seng Index .HSI. The main index for major Chinese companies listed in Hong Kong .HSCE fell 14 percent in the same period.