COSCO says it won’t seek bailout (2)

According to Liu Zhe, a stock commentator for the China Business News, China COSCO will be able to reach a break-even point only when the BDI is above 1,500 points, much higher than its current level of 792 points as of Tuesday.

Also during Tuesday's meeting, COSCO's Guo confirmed that Wei Jiafu, chairman of the company, did send letters to the State Council asking for government rescue, but he explained that it was on behalf of the China Shipowners' Association that Wei wrote the letters, as he also chairs that organization.

"Offering exclusive policy support to China COSCO would be not only unfair to other players in the shipping market, especially privately owned ones, but also harmful to the company's future development," Zhou noted.

"But it doesn't mean the shipping industry doesn't need any help from the government," he said. "The relevant authorities should lower the taxation levels for Chinese shippers to relieve some of the cost pressure faced by the industry."