CSCL to provide $1.5bn guarantee for Hong Kong-based subsidiary

摘要

China Shipping Container Lines, a main unit of state conglomerate China Shipping Croup, has announced it is to provide a maximum $1.5bn guarantee to its wholly-owned subsidiary in Hong Kong between July 1, 2015 and June 30, 2016. The Hong Kong- and Shanghai-listed company proposed the guarantee because the debt-to-asset ratio of the subsidiary CSCL (Hong Kong) has exceeded 70%, and the amount of a single guarantee has surpassed 10% of CSCL's net assets, according to an exchange filing.