China considers merger of top shipping companies

A possible merger of China's two largest shipping lines by revenue could point the way toward possible streamlining of other State-owned enterprises, and help raise stock market sentiment, industry insiders said on Monday.

The joining of the five major subsidiaries of China Ocean Shipping (Group) Co and China Shipping (Group) Co - including COSCO Shipping Co, COSCO Holdings Co and China Shipping Development Co - was hinted at in a stock exchange filing on Friday which said trading in the firms' stocks would be suspended on Monday.

Ship.sh, a Shanghai-based shipping industry news website, reported the two parent companies planned to set up a reform committee to discuss a joint restructuring plan, which will be submitted to the central government within the next three months.