Pacific Basin Looking to Enhance Its Profile in China

Hong Kong-listed dry bulk carrier Pacific Basin Shipping has been included an eligible stock for Southbound Trading under Shenzhen-Hong Kong Stock Connect (SZ-HK Stock Connect).

“We are very pleased to be included in the SZ-HK Stock Connect scheme. The southbound trading mechanism will help to enhance Pacific Basin’s profile in the mainland Chinese capital markets, and potentially enlarge our shareholder base in China where our business of transporting raw materials is likely to have a particular resonance,” Mats Berglund, CEO of Pacific Basin, said.

Additionally, the group has been included in the Hang Seng Stock Connect Hong Kong Index Series, consisting of the Hang Seng Stock Connect Hong Kong Index (HSHKI), the Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index (HSHKMS), and the Hang Seng Stock Connect Hong Kong SmallCap Index (HSHKS). The index revision is effective from September 4, 2017.

During the first half of 2017, Pacific Basin managed to cut its underlying loss to USD 6.7 million from last year’s USD 61.6 million loss, amid improved dry bulk market freight rates in the first half of 2017.

Despite the rates recovery, the company informed that it will not be exercising its options for newbuilding tonnage as long as the current market conditions remain.

The dry bulker owner has options to purchase 11 Handysize, 3 Supramax and 1 Post-Panamax vessels at predetermined times and prices during the period of their leases. However, the company earlier said that it is keeping a close eye on the second-hand assets, which currently have very attractive prices, to bolster its fleet.