CIMB Research cut its target price for China's Yangzijiang Shipbuilding (Holdings) Ltd shares to S$1.30 from S$1.43 and kept its outperform rating, citing increased risk aversion triggered by the euro zone's debt woes.

Yangzijiang shares were 1.4 percent lower at S$1.025, and have gained about 12 percent so far this year, compared with the FT ST China Index's 0.3 percent gain in the same period.

CIMB said that the 13.6 percent plunge in Yangzijiang in May was unwarranted and the shares are oversold, trading at 1.2 times price-to-book value.

"With no news of order cancellations, we foresee a rapid recovery in its share price if and when euro zone concerns dissipate," CIMB said in a report.

Yangzijiang's entry into rig building could be easier than that of other Chinese shipbuilders such as COSCO Corp Singapore Ltd and JES International Holdings, due to its strong track record, the broker said.

0931 (0131 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)