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COSCO and Dalian Wanda liven up Monday markets

Monday, July 10, 2017 - 01:47

COSCO Shipping and Hong Kong's Orient Overseas International Ltd's shares leap after the Chinese shipping giant made a $6.3 billion offer for its smaller rival. As Ciara Lee reports, they weren't the only big market movers in China - shares in the Dalian Wanda Hotel development Group rose 150% after the Dalian Group said it would sell Chinese tourism projects and hotels to Sunac China for $9.3 billion.

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Two big firms. Two big offers. And two big Monday market movers. The first - COSCO Shipping Holdings - saw its stock climb after bidding $6.3 billion for Hong Kong's Orient Overseas International. The deal would see COSCO become the world's third-biggest container shipper, behind Denmark's Maersk and Switzerland's Mediterranean Shipping. China's has big supply-chain ambitions. But some feel the offer is high given the shipping industry is only just emerging from a prolonged slump. One big selling point though - Orient Overseas International would help COSCO gain exposure to the U.S. (SOUNDBITE) (English) WILSON KING INVESTMENT MANAGEMENT, HEAD OF RESEARCH, RICHARD HUNTER, SAYING: "What we are seeing is a wave of consolidation in the shipping sector. This is one which has fared particularly badly since the financial crisis, it really has struggled to return to former glories. There is the possibility that this particular deal will underline Costco's place within the Chinese powerhouses of the global shipping industry. And that could strategically tie in to the Belt and Road initiative as recently announced by the Chinese government as well." The second deal to capture market's attention... Chinese group Dalian Wanda is to sell tourism projects and hotels to developer Sunac China for 9.3 billion dollars. The sale - the second-biggest real estate deal ever in China according to Reuters - is expected to help Wanda cut its debt pile and strengthen its case for a listing on the mainland. It delisted from Hong Kong last year. Shares in Wanda Hotel Development surged more than 150 percent after the news. The Chinese group had plans to build at least 20 cultural projects, including theme parks, around China. Its billionaire owner Wang Jianlin last year said his "wolf pack" of parks would beat U.S. rival Walt Disney.

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COSCO and Dalian Wanda liven up Monday markets

Monday, July 10, 2017 - 01:47