Shares of China Cosco Holdings fell more than 7 per cent in Hong Kong early on Monday after the shipping conglomerate warned it would post a second straight year of losses last year due to low freight rates and a weak dry bulk market.

Cosco, which posted a net loss of 10.4 billion yuan (US$ 1.7 billion) for 2011, said on Friday that it expected to  record a significant net loss for last year and faces delisting of its Shanghai-traded A shares if it does not turn around.