China's shipbuilding industry is in urgent need of

2022-08-23
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China's shipbuilding industry is in urgent need of financial assistance

affected by the U.S. subprime mortgage crisis, including Citigroup, Merrill Lynch, UBS and other U.S. and European financial institutions have suffered huge losses. The aftermath of the subprime mortgage crisis has spread all over the world, and the shipbuilding industry is difficult to survive

the capital chain is tight, and the number of new ship orders fell sharply in the first quarter

Bao Zhangjing, chief researcher of the ship Market Research Department of the China Shipbuilding Industry Research Center, expressed the industry's concern about the adverse impact of the U.S. subprime mortgage crisis on China's shipbuilding industry. The impact of the subprime mortgage crisis on the shipbuilding market cannot be underestimated

CSIC economic research stopped the slider near the top dead center. Central industry analyst Jiang Rifu said that since the end of 2007, the situation of world ship financing has become increasingly severe due to the huge losses of financial institutions. Some second - and third tier small and medium-sized ship owners in South Korea and India cancelled orders because of lack of funds. However, the difficulty of ship owners' financing in China has emerged, and the cancellation of contracts has occurred from time to time

Li Ruogu, chairman and President of the Export Import Bank of China, pointed out that the turbulence in the international financial market has impacted the shipping market, thus affecting the financing arrangements of new ships and increasing the financing risks of shipbuilding. Since 2008, the activity of major international ship financing companies has decreased

at the same time, the overall outlook of the shipping industry will also be impacted to a certain extent because the subprime mortgage crisis may trigger a U.S. economic recession and even affect the global economy and trade. Concerns about the shipping market also led financial institutions to lower their profit expectations for the shipbuilding industry and increase their risk awareness of ship financing. On the one hand, it raised the interest rate base point of the ship financing loan, on the other hand, it tightened the review of the ship financing loan project. These measures objectively make it more difficult for shipowners to raise funds, which will affect the ordering of new ships

according to the market survey data released by Clarkson research company, from January to February 2008, the order volume of new ships in the international shipbuilding market was 6.37 million dwt, down 36% from 10million DWT in the same period of 2007. While the domestic shipbuilding industry's new ship orders in the first quarter were 8.15 million dwt, which was significantly different from the 20.1 million dwt in the same period of seven years compared with the latest development and utilization of innovative medical high-tech personnel shared with 200 well-known raw material suppliers. This phenomenon has received more and more attention

cold in the West and hot in the East. Domestic banks are optimistic about the shipbuilding industry

although ship financing is in trouble, it has not formed a situation of "the same cold and hot in the world". Compared with the harsh financing environment of European banks, the ship financing environment in Asia and China is relatively loose. In the view of domestic financial circles, the tightening of borrowing conditions by foreign financial institutions and the obstruction of foreign financing by some Chinese shipowners have opened the door of opportunity for domestic financial institutions

Not long ago, Dalian shipbuilding industry group signed a development financial cooperation agreement with the China Development Bank with a loan scale of 36billion yuan. In the next five years, the China Development Bank will provide Dalian ships with a full range of financial products and financial services such as foreign exchange business loans, capital construction loans, foreign exchange settlement and sales, and support Dalian shipbuilding industry group to expand export trade, This shows that domestic financial institutions are still optimistic about the development prospects of the shipbuilding industry

it is reported that the Export Import Bank of China has always been the leader in the field of ship financing, with most of the ship financing businesses of large and medium-sized state-owned shipyards. However, the situation has changed. The six major domestic commercial banks have invested in the ship financing business with unprecedented enthusiasm. Xu Wei, senior customer manager of the Financial Leasing Department of the Bank of communications, said that financing is indeed tight, but we will not let go of good projects. In his view, crisis may also be an opportunity

in recent years, with the rise of China's shipbuilding industry, the financial demand for ship financing is also expanding rapidly. Minsheng Bank, which used to cooperate with the export import bank by providing guarantee, began to develop ship financing business

it is reported that Minsheng Bank began to implement business transformation in 2005 and increased its research and development efforts in the shipbuilding industry. At the same time, in order to further promote the development of ship financing business, Minsheng Bank established a special business team for ship financing and hired well-known experts in the industry as business consultants, in order to build a business team with strong professional background and rich operating experience in ship financing and related fields as soon as possible

at present, most Chinese banks take the form of direct loans to shipping enterprises, but the industry has begun to pay attention to the good development prospects of the shipping market. Some large banks, such as China Merchants Bank and industrial and Commercial Bank of China. 6. The main configuration of product machinery: all actively develop ship financing lending or leasing business

financing is even more difficult. Small and medium-sized shipyards look forward to paying more attention to the tight capital environment brought about by the subprime mortgage crisis, which is even worse for small and medium-sized private shipyards. Data show that in 2007, the number of ships built by local shipyards in China accounted for 44% of the domestic share, 60% of the new ship orders, and 52% of the shipbuilding orders. Although in the latter two indicators, it surpasses the two major groups of China Shipbuilding Industry Corporation and China Shipbuilding Industry Corporation, in terms of financing, local shipyards are difficult to get financial support

Lin Guozhen, general manager of Fujian Huadong shipyard, a private enterprise, said that the financing means of domestic shipyards are relatively simple, and they basically borrow from banks. Large state-owned shipyards have obvious advantages in obtaining bank credit, but Lin Guozhen operates a private shipyard, and the bank has strict conditions for its lending, which has been tightened since the end of 2007. Lin Guozhen said that if not, they had to give up shipbuilding and turn to ship repair and transformation

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