(Yicai) Sept. 8 -- Shares of Ningbo Ocean Shipping rose after the Chinese shipping giant said it plans to invest around CNY2.9 billion (USD406.6 million) via its Singapore subsidiary to set up two new units in the country to optimize and grow its fleet and enhance global service capabilities.

Ningbo Ocean Shipping [SHA: 601022] jumped 5.8 percent to CNY10.11 (USD1.42) a share as of 2.10 p.m. in Shanghai today.

Ningbo Ocean Shipping Singapore will invest around CNY1.2 billion to establish Ningbo Ocean Shipping Singapore Longitude and about CNY1.7 billion to set up Ningbo Ocean Shipping Singapore Latitude, the parent firm said in a stock exchange filing on Sept. 7.

Ningbo Ocean Shipping will use its own or self-raised funds for the investment, with the final amount still pending approval from Chinese and Singaporean authorities, it pointed out.

Ningbo Ocean Shipping Singapore Longitude will invest in, build, and run a project involving four 2,700 twenty-foot equivalent unit ships, while Ningbo Ocean Shipping Singapore Latitude will oversee a project with four 4,300 TEU ships, the parent firm noted.

The investment aligns with Ningbo Ocean Shipping's ship construction and investment plans, which are conducive to optimizing and strengthening its core shipping business and enhancing its core competitiveness, the company said.

In addition, by leveraging Singapore's advantages as an international shipping center, including its rich shipping resources, comprehensive supporting services, and favorable geographical location, Ningbo Ocean Shipping will strengthen its exchange and ties with the international market, improving its relevant competitiveness and service capabilities, it added.

Established in 1992, Ningbo Ocean Shipping is a holding subsidiary of Ningbo-Zhoushan Port, operating 33 container liner routes across 39 ports along the Chinese mainland's coastal areas and the Yangtze River. It also has an extensive route network spanning Japan, South Korea, Taiwan, and Southeast Asia.

Editor: Martin Kadiev