CHINA’S shipbuilding giants said Friday they have not received any merger-related information from authorities, after an executive swap between the firms sparked a market rally in their shares a day ago.

    The pair are the latest State firms to see merger rumors trigger jumps in their share prices, as investors expect China to unleash a fresh round of industrial consolidation as part of reform of its State-owned firms.

    Shares in China CSSC Holdings Ltd. and China Shipbuilding Industry Co. (CSIC) reached their 10 percent trading limit Thursday after their parent firms announced that CSSC chairman Hu Wenming will now head CSIC among other management changes.

    “The top management reshuffle at CSSC and CSIC has sparked market speculation that the two shipbuilders may merge,” the companies said in near-identical statements.

    “With respect to these merger rumors, the company and its parent have yet to receive any merger-related information from authorities.”

    Trading in the shares at both firms was comparatively subdued Friday, with CSSC down 4.05 percent and CSIC closing down 1.92 percent Friday.

    Rail builders China Railway Construction Corp. and China Railway Group Ltd. similarly dismissed merger rumors March 17 after media reports triggered a surge in their share prices. (SD-Agencies)