SINGAPORE/HONG KONG - China COSCO Holdings does not have a cash flow problem and renegotiations with shipowners over outstanding bills are going well, Reuters reported, citing company officials on Wednesday.

"The (talks) are purely commercial behavior. The company has no cash flow problems," said a COSCO official, who asked not to be identified.

China's top shipping conglomerate is in talks with several shipowners, seeking to prolong payments and reduce costs following a sharp downturn in the freight market.