HK Stock Market Move | Cssc Offshore & Marine Engineering (00317) fell over 6% Nowhere South North Boat Price After Resumption Resumes Upside Potential Dragging Down AH Ship Sector

The shipbuilding sector in the mainland and Hong Kong is continuing its decline from yesterday. As a result, Cssc Offshore & Marine Engineering (00317) A-shares fell in the morning trading session, with A-shares down more than 5% and H-shares down 6.22%, trading at HK$12.06 with a turnover of HK$48.308 million. On the news front, on September 18th, the restructuring plan for the merger of China CSSC and China Shipbuilding Industry was announced, which will deeply integrate the advantages of their research and production resources and supply chain resources, promoting the deep integration and upgrade of advanced shipbuilding technologies. Changjiang pointed out that after the merger of China CSSC and China Shipbuilding Industry, the national proportion of new orders is expected to exceed 30%; if Cssc Offshore & Marine Engineering is considered for future merger, the proportion of new orders and production capacity will be even higher. It is worth noting that the exchange price of the "North-South Ship" is determined by the average trading price of the last 120 trading days before suspension, which are respectively 37.84 yuan/share and 5.05 yuan/share, meaning every 7.4931 shares of China Shipbuilding Industry can be exchanged for one share of China CSSC. On September 2nd, when the suspension occurred, the price ratio of the two companies was 7.008. Shenwan Hongyuan Group pointed out that according to the exchange price, the trend of shipbuilding and heavy industry stock prices is synchronized compared to before the suspension, otherwise there may be arbitrage opportunities. As of the close on September 19th, the price ratio of the two companies was 7.4198, which is very close to the exchange ratio.