Cosco (F83.SG) +4.7% at almost five-week high of $1.56 in active trade as company receives initial deposit from European shipowners to begin construction of 2 out of 15 bulk carriers recently ordered, according to Dow Jones.

Downpayment mitigates risk of contract cancellation, which plagued share price for much of last year. US$440 million ($606 million) worth of orders for 15 vessels disclosed last week, though Cosco said contracts yet-to-be effective, pending payment of deposit by clients.

“We believe the shipowners should already have financing arrangement for the (remaining) newbuilds prior to signing of the contracts,” says DBS Vickers, which has Buy call with $1.80 target. Current gains also supported by rally among S-chips (FTSE ST China Index +3.8%) triggered by China’s call for greater RMB flexibility.

Immediate resistance at $1.59, 50% retracement of fall to May low of $1.30 from 52-week high of $1.87.