China’s largest shipping group, Cosco Shipping, is considering raising capital for the first time on the London Stock Exchange through a new initiative with Shanghai’s bourse, two finance sources familiar with the matter have said.
The Shanghai-London Stock Connect will enable Chinese companies to raise fresh money on the LSE through issuing global depository receipts (GDR), which could boost momentum amid concerns that Brexit could dent the City of London’s leading position in financial markets.
The sources, who declined to be identified, citing sensitivity, said Cosco Shipping Holdings Co, which is Shanghai and Hong Kong listed, was examining the possibility of issuing GDRs in London.
No decision had been taken yet, partly as it would also require Chinese regulatory approval.
Cosco, which is the world’s No. 3 container shipping line, is still contending with pressured markets and has been looking at expanding its activities globally.
The Cosco group acquired a 51 percent stake in Greece’s Piraeus port in 2016 and finance sources say the company has looked at other shipping assets in Europe since then.
Earlier this year it completed its $6.3 billion acquisition of Hong Kong’s Orient Overseas International Ltd, helping to strengthen its leading position in global shipping and also as China’s top sea transportation arm.