Cosco and China Shipping said recently that they were discussing a “material event,” widely believed to be a merger, and would extend the trading halt on Hong Kong and Shanghai exchanges that has been in force since August 10.

“At present, the event is in the planning process, there are still uncertainties,” China Cosco Holdings said in the announcement to the Hong Kong Exchange. The company said another announcement on the matter would be made in five days.

Both carriers have apparently been told by the central government to draft a preliminary merger plan within three months starting from August. While no official statement from Beijing has been issued, the ongoing trading suspension suggests an announcement on the merger is in the pipeline.

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