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HSBC pointed out in the report that the ROE of CHINA COSCO (01919.HK)  +0.120 (+3.571%)    Short selling $323.54K; Ratio 0.541%   in the third quarter was 28%. Excluding scrapping subsidies, the recurring ROE was -4%, still beat the estimates of -8% of the research house.

In order to narrow the loss, China COSCO downsized the scale of dry bulk vessels. HSBC considered that the ROE of the company has reached the bottom and is firmly on the path of recovery to mid-single digit levels. The target price of China COSCO was raised from $2.7 to $4. The rating was upgraded from Underweight to Overweight. 

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