China Shipping Group Company, Limited, formerly China Shipping (Group) Company, is a former Chinese

state-owned State ownership, also called government ownership and public ownership, is the ownership of an industry, asset, or enterprise by the state or a public body representing a community, as opposed to an individual or private party. Public owner ...

shipping Freight transport, also referred as ''Freight Forwarding'', is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been ex ...

conglomerate. It is now one of the intermediate holding companies for another Chinese state-owned conglomerate, China COSCO Shipping, which was formed by a merger of China Ocean Shipping Company (COSCO) and China Shipping Group by the creation of a new parent company for the two conglomerates. 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 c ...

passenger A passenger (also abbreviated as pax) 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 ...

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. Other related businesses included

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

and

Terminal Terminal may refer to: Computing Hardware * Terminal (electronics), a device for joining electrical circuits together * Terminal (telecommunication), a device communicating over a line * Computer terminal, a set of primary input and output devic ...

management, finance and investment,

engineering Engineering is the use of scientific method, scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The discipline of engineering encompasses a broad rang ...

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. An early form of trade, barter, saw the direct exch ...

and

information technology Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system ...

History

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

Guangzhou Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong ...

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. Located on ...

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 COSCO Shipping Energy Transportation Co., Ltd., stylized as COSCO SHIPPING Energy, is a Chinese oil tanker shipping company with its headquarters in Hongkou District, Shanghai. The company transports crude oil, LNG, and LPG. It is a subsidiar ...

, 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,

, 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 (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'', ), 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" (), which strictly speaking refers only to the main seaport ...

. In 2008, China Shipping Group announced that to form a joint venture with fellow Chinese Government owned China National Coal Group on shipping coals.

IPOs

In 2004, the Group listed the subsidiary,

China Shipping Container Lines COSCO Shipping Development Co., Ltd., stylized as COSCO SHIPPING Development is a financial services company based in Shanghai, China. It was known as China Shipping Container Lines (CSCL) and was among the world's largest container liner co ...

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. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repo ...

(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 Excha ...

(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 Exch ...

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

Shanghai Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flowin ...

. 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 securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

, 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 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 company limited by ...

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

Subsidiaries

, former China Shipping Group listed subsidiaries,

, 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 China Ocean Shipping Company, Limited, formerly China Ocean Shipping (Group) Company, commonly known for its abbreviated name COSCO Group, or simply, COSCO, is a former Chinese Government owned shipping and logistics services supplier compa ...

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 HR, Hr or hr may refer to: Arts and media Film and television * '' H.R. Pufnstuf'', a children's television series from 1969 * ''HR'', a 2013 television drama starring Alicia Silverstone * HR, a criminal organisation in the American TV series ''P ...

, 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 People's Republic of China, directly under the State Council. It was founded in 2003 through the consolidation of variou ...

(SASAC) of the

State Council State Council may refer to: Government * State Council of the Republic of Korea, the national cabinet of South Korea, headed by the President * State Council of the People's Republic of China, the national cabinet and chief administrative autho ...

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); ), known by Academia Sinica in English until the 1980s, is the national academy of the People's Republic of China for natural sciences. It has historical origins in the Academia Sinica during the Repub ...

(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

, 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 China Ocean Shipping (Group) Corporation (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 its only current meaning in English. * 1,000,000,000,000, ...

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.

Footnotes

References

External links

* {{authority control Companies based in Shanghai Shipping companies of China Holding companies of China 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