China Shipping Group Company was a former shipping corporation from 1997 to 2016, owned by the State Council of China. The company merged with

China Ocean Shipping Company China Ocean Shipping Company (COSCO) was a former shipping corporation from 1961 to 2016, owned by the State Council of China. The company merged with China Shipping Group Company to form China COSCO Shipping Corporation in January 2016. ...

to form China COSCO Shipping Corporation in January 2016. China Shipping Group was mainly engaged in shipping of

oil tankers An oil tanker, also known as a petroleum tanker, is a ship designed for the bulk transport of oil or its products. There are two basic types of oil tankers: crude tankers and product tankers. Crude tankers move large quantities of unrefined cr ...

passenger A passenger is a person who travels in a vehicle, but does not bear any responsibility for the tasks required for that vehicle to arrive at its destination or otherwise operate the vehicle, and is not a steward. The vehicles may be bicycles, ...

ships and

container A container is any receptacle or enclosure for holding a product used in storage, packaging, and transportation, including shipping. Things kept inside of a container are protected on several sides by being inside of its structure. The term ...

vessels Vessel(s) or the Vessel may refer to: Biology *Blood vessel, a part of the circulatory system and function to transport blood throughout the body *Lymphatic vessel, a thin walled, valved structure that carries lymph *Vessel element, a narrow wat ...

. Other related businesses included

ship A ship is a large watercraft, vessel that travels the world's oceans and other Waterway, navigable waterways, carrying cargo or passengers, or in support of specialized missions, such as defense, research and fishing. Ships are generally disti ...

and Terminal management,

finance Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Admin ...

and

investment Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

engineering Engineering is the practice of using natural science, mathematics, and the engineering design process to Problem solving#Engineering, solve problems within technology, increase efficiency and productivity, and improve Systems engineering, s ...

human resources Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include ' ...

trading Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market (economics), market. Traders generally negotiate throu ...

and

information technology Information technology (IT) is a set of related fields within information and communications technology (ICT), that encompass computer systems, software, programming languages, data processing, data and information processing, and storage. Inf ...

History

China Shipping Group Company was formed in 1997 by a merger of three Chinese Government owned shipping conglomerates, based in Shanghai,

Guangzhou Guangzhou, Chinese postal romanization, previously romanized as Canton or Kwangchow, is the Capital city, capital and largest city of Guangdong Provinces of China, province in South China, southern China. Located on the Pearl River about nor ...

and

Dalian Dalian ( ) is a major sub-provincial port city in Liaoning province, People's Republic of China, and is Liaoning's second largest city (after the provincial capital Shenyang) and the third-most populous city of Northeast China (after Shenyang ...

respectively. At first the company had a net loss of RMB 680 million (in yuan) a year. The merger also made China Shipping Group became the new parent company of Hong Kong listed company China Shipping Development, at that time known as Haixing Shipping. Haixing Shipping was listed since 1994. China Shipping Group sold 19 oil tankers to the aforementioned listed subsidiary in 1998, for cash and A share. In 2000, China Shipping Group formed a new land based logistics company, China Shipping Logistics Co. (CSLC), with other fellow Chinese Government owned companies. China Shipping Group's listed subsidiary, China Shipping Development, also purchased a small stake. In 2001, China Shipping Group bought 50% stake of China Shipping (North America) Agency from Norton Lilly International, a shipping agent. In 2002, China Shipping Group, via the subsidiary, China Shipping Container Lines, placed orders on new container ships. The deal was partnered with fellow Government owned company (and future sister company),

China Ocean Shipping (Group) Corporation China Ocean Shipping Company (COSCO) was a former shipping corporation from 1961 to 2016, owned by the State Council of China. The company merged with China Shipping Group Company to form China COSCO Shipping Corporation in January 2016. ...

(COSCO Group) and worth more than US$700 million. In 2003, China Shipping Container Lines, introduced their second shipping route between China and northern Europe. In 2005, via a subsidiary, China Shipping Group invested in a terminal of the

Port of Tianjin The Port of Tianjin (''Tianjin Gang'', zh, s=天津港, p=tiānjīn gǎng}), formerly known as the Port of Tanggu, is the largest port in Northern China and the main maritime gateway to Beijing. The name "Tianjin Xingang" ( zh, s=天津新港, ...

. In 2008, China Shipping Group announced that to form a joint venture with fellow Chinese Government owned

China National Coal Group China National Coal Group Co., Ltd., known as China Coal Group, is a Chinese coal mining conglomerate that was supervised by the State-owned Assets Supervision and Administration Commission of the State Council, State-owned Assets Supervision a ...

on shipping coals.

IPOs

In 2004, the Group listed the subsidiary, China Shipping Container Lines in the

Stock Exchange of Hong Kong The Stock Exchange of Hong Kong (, SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. It is one of the largest stock exchanges in Asia and the 9th largest globally by market capitalization as of August 20 ...

(SEHK) by issuing

H shares H shares () refer to the shares of companies incorporated in mainland China that are traded on the Hong Kong Stock Exchange. Many companies float their shares simultaneously on the Hong Kong market and one of the two mainland Chinese stock excha ...

. In 2007, the listed subsidiary floats its A share in the

Shanghai Stock Exchange The Shanghai Stock Exchange (, SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock ...

(SSE). In 2007, China Shipping Group injected assets to another listed subsidiary of the group, China Shipping Haisheng (), which is listed in SSE. However, China Shipping Group sold China Shipping Haisheng in August 2015. but bought back some business in August 2016 to complete the selling of the listed company as a vehicle of

backdoor listing A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public compan ...

. The Group has yet another subsidiary that listed in

Shenzhen Stock Exchange The Shenzhen Stock Exchange (SZSE; ) is a stock exchange based in the city of Shenzhen, in the People's Republic of China. It is one of three stock exchanges operating independently in Mainland China, the others being the Beijing Stock Excha ...

(SZSE), which formerly known as China Shipping Network Technology. In 2011, yet another subsidiary, was planned to be listed in the SEHK. However, it was cancelled in August 2011.

Mergers

In 2010, fellow Central Government owned conglomerate, Shanghai Ship and Shipping Research Institute (SSSRI), became a wholly owned subsidiary of China Shipping Group. In December 2015 the China Shipping Group announced a merger with its larger government-owned compatriot,

(COSCO Group). The merger was completed in February 2016; producing the mega-entity China COSCO Shipping, to be headquartered in

Shanghai Shanghai, Shanghainese: , Standard Chinese pronunciation: is a direct-administered municipality and the most populous urban area in China. The city is located on the Chinese shoreline on the southern estuary of the Yangtze River, with the ...

. The businesses and subsidiaries of both China Shipping and COSCO were integrated into one conglomerate. The merger was triggered by a downturn in the container and marine shipping industry that stymied the financial health of both China Shipping and COSCO, thus motivating the two to unite and endure the decline together. Additionally, the merger is attributable to China's State-owned enterprise reform. China Shipping Group was retained as an intermediate

holding company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...

, but disappeared as the brand of the combined group. In 2017, China Shipping (Group) Company was reincorporated from "An industrial enterprise owned by the whole people" to simply a

limited company In a limited company, the Legal liability, liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by Share (finance), shares or by guarantee. In a c ...

. The name of the company, also changed to China Shipping Group Company, Limited ().

Subsidiaries

, former China Shipping Group listed subsidiaries, China Shipping Development, China Shipping Container Lines, China Shipping Network Technology and China Shipping Haisheng, are known as COSCO Shipping Energy Transportation (or simply, COSCO Shipping Energy), COSCO Shipping Development, COSCO Shipping Technology and Lanhai Medical Investment () respectively. , China Shipping Group, also owned 38.56% shares of COSCO Shipping Energy and 38.41% shares of COSCO Shipping Development respectively, as the largest shareholders and controlling shareholders. China Shipping Group is not a shareholder of Lanhai Medical Investment anymore since August 2015. China Shipping Container Lines engaged in container shipping line but after renaming to COSCO Shipping Development, engaged in leasing container and vessels only. While China Shipping Development, now COSCO Shipping Energy Transportation, engaged in oil tanker business.

Shanghai Ship and Shipping Research Institute

, China Shipping Group is the direct parent company of Shanghai Ship and Shipping Research Institute (SSSRI), which in turn owned 50.01% shares of aforementioned COSCO Shipping Technology. SSSRI conducts research and development into ship design. In 2017, SSSRI order an equipment from HR Wallingford, worth £12 million. According to the institute, it was founded in 1962 and became part of China Shipping Group in 2010. From 2003 to 2010 it was supervised by

State-owned Assets Supervision and Administration Commission The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is a special commission of the State Council of the People's Republic of China. It was founded in 2003 through the consolidation of various other indus ...

(SASAC) of the State Council directly. In 2007, SSSRI formed a joint venture, Underwater Security Guard Engineering Center, with Institute of Acoustics,

Chinese Academy of Sciences The Chinese Academy of Sciences (CAS; ) is the national academy for natural sciences and the highest consultancy for science and technology of the People's Republic of China. It is the world's largest research organization, with 106 research i ...

(IACAS). SSSRI completed a design of a record-breaking 25,000 TEU ship in 2019.

China Shipping Nauticgreen

As of 2011, China Shipping Nauticgreen Holdings Co., Ltd. was a subsidiary of China Shipping Group. It was a shipping container leasing company. In the eve of its planned IPO in 2011, the largest customer was sister company China Shipping Container Lines, for a reported 24.6% revenue. The suppliers of China Shipping Nauticgreen, Dong Fang (Guangzhou), Dong Fang (Jinzhou) and Dong Fang (Lianyungang), were all controlled by the parent company China Shipping Group. After the failed IPO in 2011 and the merger of the parent company, China Shipping Group, with

(COSCO Group) in 2015, the container and vessel leasing business of China Shipping Group, was purchased by China Shipping Container Lines instead, while China Shipping Container Lines sold their container line business to other sister company of the enlarged group. The complex intra group re-organization that involves multiple listed subsidiaries, saw Oriental Fleet International (new name of China Shipping Nauticgreen) and other companies of that container and vessel leasing business division, were sold to China Shipping Container Lines. As of 2019, COSCO Shipping Development (former China Shipping Container Lines), still purchased RMB1.251

billion Billion is a word for a large number, and it has two distinct definitions: * 1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is now the most common sense of the word in all varieties of ...

worth of containers from its parent China COSCO Shipping group, which includes China Shipping Group in the definition of Hong Kong listing rule for connected transaction.

References

External links

* {{authority control Companies based in Shanghai Shipping companies of China Holding companies of China Defunct government-owned companies of China Chinese companies established in 1997 Transport companies established in 1997 1997 mergers and acquisitions 2015 mergers and acquisitions Conglomerate companies of China 2015 in Shanghai