Cosco Shipping has announced that it has applied with China Securities Regulatory Commission to terminate the planned issuing of RMB2.5bn ($394.5m) worth of new shares due to the ongoing restructuring deal of its parent Cosco Group.

Cosco Shipping announced the plan in January this year and it planned to use the raised funds for fleet expansion including two semi-submersible vessels and seven heavylift vessels.

Cosco Group and China Shipping Group, two state-run shipping conglomerates, are currently working on a potential merger deal with the listed subsidiaries of the two groups suspending stock trading since August. The deal is expected to be announced in November.