According to a recent FT.com article the company responsible for most of the destruction of coral reefs and reef habitat in the disputed Spratly Islands is listed on the Hong Kong stock exchange and is planning an overseas listing.
China Communications Construction Company (HK:1800), a large state-owned infrastructure group, announced in March that it was integrating its three dredging assets into a new company, CCCC Dredging, which it would eventually list overseas. That entity was set up in Shanghai’s Free Trade Zone on Wednesday.
China’s dredging programme has created about half a dozen islands in the South China Sea with deepwater harbours and at least one airstrip.
In the past 18 months, according to the US defence secretary, at least 2,000 acres of land have been reclaimed — more than has been done in 60 years by other claimants to the territory, including Vietnam, Malaysia and the Philippines.
Satellite images analysed by IHS Jane’s, the defence consultancy, show that Tianjin Dredging Company, one of CCCC Dredging’s three subsidiaries, operates most of the giant barges that have been digging sand from the seabed and piling it on remote coral atolls with names such as Mischief Reef, Suba Reef and Fiery Cross.
The flotation plans are curious for secretive Tianjin. A listing would require greater transparency and focus more attention on its activities.
In March CCCC said in a filing to the Hong Kong Stock Exchange, where it has been listed since 2006, that it “intends to seek listing of CCCC Dredging overseas at an appropriate market timing”.
Hongkongers and potential overseas investors should be aware that CCCC is not an ethical investment.
Source: FT,com June 11th, 2015