China CSSC share swap faces scrutiny over trading activity

China CSSC Holdings (SSE:600150) is facing scrutiny regarding trading activity surrounding its proposed share swap merger with China Shipbuilding Industry Corporation. Independent financial advisor CITIC Securities conducted a review of stock trading by relevant parties during the six months leading up to the initial disclosure of the transaction. The review identified some trading activity by individuals connected to the deal, including independent directors and family members. However, CITIC Securities concluded that these trades were based on independent investment decisions and did not constitute illegal insider trading, nor would they create material obstacles to the transaction. Similarly, legal counsel Shanghai AllBright Law Offices also reviewed the matter and corroborated CITIC Securities' findings. Both firms have issued opinions stating the merger faces no substantial legal impediments.