On June 12, COSCO SHIPPING Energy (01138.HK) rose 7.73% in regular trading, trading at HK$13.6/share with turnover of HK$114 million, marking a sharp rebound after 16 consecutive sessions of decline on the A-share side from late May through June 11.
The rally is primarily driven by the US Federal Register publishing a notice removing COSCO SHIPPING Energy from the list of companies potentially designated as Chinese Military Companies. This move significantly alleviates the sanctions overhang that had weighed on the stock, benefiting the company's international business operations. BlackRock also disclosed a substantial stake increase of approximately 51.38 million shares at HK$15.99 per share on May 29, totaling around HK$822 million, raising its holding to 10.24%.
The stock had previously suffered from a severe downturn driven by VLCC spot rates collapsing approximately 78% from March highs, Middle East geopolitical premium dissipation, and concerns over capital expenditure expansion including a 6.445 billion yuan LNG newbuilding order. The removal from the military companies list now eliminates a key non-fundamental risk factor.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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