COSCO Shipping Ports renews financial services with group finance arm

COSCO Shipping Ports Limited announced the renewal of its financial services master agreement with COSCO SHIPPING Finance Co., Ltd., a connected person and subsidiary of its ultimate controlling shareholder, COSCO SHIPPING. The New Financial Services Master Agreement, effective from January 1, 2026, to December 31, 2028, covers deposit, loan, clearing, and other financial services. The deposit transactions are subject to Independent Shareholders' approval due to exceeding certain percentage ratios, with proposed daily maximum aggregate deposit caps set at RMB3,500 million for each year.

The agreement emphasizes that all services will be provided on normal commercial terms, ensuring rates are no less favorable than those offered by independent third-party financial institutions or other COSCO SHIPPING Group members of similar quality. Internal control measures, including weekly market rate monitoring by the company’s finance division and monthly financial statement reviews by senior management, are in place to ensure compliance and mitigate risks. COSCO SHIPPING Finance, a non-bank financial institution regulated by the NFRA, maintains its capital adequacy ratio at 24.12% and liquidity ratio at 58.45%, demonstrating robust financial health.

COSCO SHIPPING has also issued a guarantee letter to COSCO SHIPPING Holdings, ensuring the proper and orderly operation of COSCO SHIPPING Finance and covering any losses due to non-performance. This structure aims to provide cost savings, improved efficiency in fund usage, and diversified financial service options for COSCO Shipping Ports, while maintaining the flexibility to engage other financial institutions if more competitive terms become available.