Bullish China Shipping goes Large after First half Profit Surge

China Shipping Container Lines' aim of becoming a top five box line is close to becoming a reality after the state-run carrier placed a $1.36 billion order for eight 13,296-TEU containerships from Samsung Heavy Industries on the same day it reported a 13-fold increase in first half net profits.

To fund the vessel spree, China Shipping plans to issue up to 1.5 billion yuan-denominated A shares on the Shanghai market, representing 20 percent of its enlarged share capital. No issue price has been set, but based on its last trading price of HK$6.99 (89 cents) on Thursday before the shares were suspended from trading, that company would net about HK$10.5 billion ($1.35 billion).