Wuhan Iron & Steel leaves capital market

Updated 2017-02-15 13:34:29 China Daily

Wuhan Iron and Steel Co Ltd, one of the major listed State-owned steel companies in China, formally withdrew from the capital market on Tuesday.

At present, Wuhan Iron and Steel and Baosteel have entered the stock swap stage, the key process in the restructuring of the two steel giants which started last year. One share of Wuhan Iron and Steel can be swapped for 0.56 share of Baosteel.

The two stocks were suspended on Jan 24, with Baosteel's share price at 6.8 yuan () and Wuhan Iron and Steel at 3.71 yuan.

The total number of shares of the new Baosteel will increase to 22.1 billion, of which Baowu Iron and Steel Group holds 52.14 percent, while Wuhan Iron and Steel Group holds 13.49 percent, and the remaining 34.37 percent is owned by external shareholders.

Wang Guoqing, director of the Lange Steel Information Center, said that the withdrawal of Wuhan Iron and Steel is good for investors because the quality of Baosteel's shares is much higher. Baosteel has a stronger capacity to operate the assets of Wuhan Iron and Steel.

"The withdrawal comes within expectations since the plan for the reorganization is clear. Going by the current trend, the reorganization of SOEs will mainly take the form of cross-shareholdings in the future," said Wang.

Zhou Minliang, a researcher at the Institute of Industrial Economics at the Chinese Academy of Social Sciences, said State-owned enterprises must take the initiative to improve quality and achieve efficiency, optimizing the allocation of resources.

In 2016, the State-owned Assets Supervision and Administration Commission promoted the reorganization and integration of 10 State-owned enterprises, including Baosteel and Wuhan Iron and Steel Company. The number of enterprises supervised by SASAC has also been reduced to 102.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58August 20 2017 13:57:11

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16August 20 2017 13:57:11

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18August 20 2017 13:57:11

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords