Baosteel, Wuhan Steel announce restructuring plans

Baoshan Iron and Steel Co and Wuhan Iron and Steel, two of China's largest steel-makers, announced on Sunday that they would suspend share trading on the Shanghai Stock Exchange amid ongoing strategic restructuring planned by their respective parent companies.

The restructuring plans are still subject to regulatory approval, and due to uncertainties surrounding the matter, both companies have applied to halt trading of their shares on the Shanghai bourse from Monday (Jun 27), according to the filings of the two, which state that "after five trading days the companies will release a new development on the restructuring".

According to the 2015 ranking of the world's major steel-makers by the World Steel Association, Shanghai-based Baosteel is China's second largest and the world's fifth largest steel-maker by output, producing 34.94 million metric tons last year, while Hubei-based Wuhan Steel was rated China's sixth and the world's 11th largest steel mill - producing 25.78 million tons.