Yangzijiang shares up as US eases port fees on China-built vessels

But effects of global trade slowdown could still dampen its growth: Analysts

- Timothy Goh

Shares of mainboard-listed Yangzijiang Shipbuilding surged on April 21, after the US eased up on its initial proposal of imposing port fees and curbs on China-built vessels.

The counter was trading at $2.24, up 8.7 per cent as at 3.30pm on April 21, but remains 32.1 per cent below its 52-week high of $3.30 in February.

It closed 19 cents, or 9.2 per cent, higher at $2.25 on April 21.

While the easing of port fees has stabilised Yangzijiang's share price, analysts told The Straits Times that the effects of a global trade slowdown could still dampen its growth.

The company saw its share price sink in February, after the US Trade Representative Office (USTR) laid out proposed fees and other shipping restrictions on Chinese vessels.

These include port entrance fees of up to US$1 million (S$1.31 million) per vessel owned by Chinese maritime transport operators, or a US$1,000 charge per net ton on the vessel's cargo capacity.