A profit warning by stock-listed China Cosco Holdings (CCH) may be a signal that Cosco Group has lost a race against the calendar in its bid for a direct government bailout of its biggest listed subsidiary.
Cosco has not been shy about calling for cash help for CCH from its ultimate beneficial owner, the Chinese government. But China’s Finance Ministry has so far held back financial aid in the form of large direct subsidies or fresh equity and CCH is now thought to be looking to accounting write-offs in 2012 and asset sales in 2013 to save itself from delisting.
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