Top rail-car makers plan to merge: report
China is planning to merge its biggest rail-car makers, China CNR and CSR Corp, to moreeffectively compete for major global train projects, the China Securities Journal reported.
The state-owned firms halted trading on Monday and issued a statement saying they would resolve “major issues” as soon as possible. Trading would resume within five working days, they added.
Last month, CNR and CSR dismissed reports that the government was looking to merge the firms to create a giant that can better compete with foreign rivals. Chinese financial news magazine Caixin has reported that the nation is looking at a merger to facilitate exports of high-speed rail technology.
CSR was founded in 2007. The company was listed on both the Shanghai and Hong Kong stock exchanges in 2008. CNR was founded a year later in 2008 and was listed in the Shanghai markets in 2009.(