Singapore-listed Chinese shipbuilders paring gains after solid intraday run-up prompted by China's proposed U$5 billion ($6.6 billion) und to help Greek shipping companies buy Chinese vessels, says Dow Jones.

Cosco (F83.SG) +1.7% at $1.84 vs $1.87 earlier, JES International (EG0.SG) +4.3% at $0.365 vs $0.38, Yangzijiang (BS6.SG) +0.6% at $1.79 vs $1.82 at 4:10 p.m.

“European shipping companies have significant market presence and hence potential for issuing new ship building orders,” says CIMB analyst Lim Siew Khee; “however, investors may want to be cautious and re-visit the fundamentals of these (SGX-listed) companies.”

Notes valuations for Cosco, Yangzijiang excessive after run-up, with Cosco for instance trading at 17.7x FY11 P/E vs average 12x for established Singapore yards. Orderbook quotes suggest stocks likely to end in positive territory but not expected to revisit session highs.