Over the past few years, Chinese banks has been increasingly active in the international ship finance market which becomes a key rescue team as expected. In addition to the conventional financial methods, Chinese ship financial leasing companies are more interested in alleviating financing difficulties for shipping enterprises by leverage of their unique advantages.
Meanwhile, it is worthwhile to note that China shipbuilding industry performance is very brilliant. Data shows that China's new orders, output and ongoing orders respectively accounted for 35%, 30.7% and 33.5% among the world's total shipbuilding volume in 2013. All three major indicators of China's shipbuilding industry top the world, therefore the huge demand for shipping finance is self-evident.
The whole pace for ship finance had geared down since 2008, in particular for Chinese private shipping entities and new shipowners. Amid the sluggish BDI performance, it is common that many shipping companies are struggling for their daily operation. In this circumstance, what are shipowners’ consideration and decision for shipbuilding? Whether the offshore oversupply is around the corner? How will the new building price volatile? Given the current lackluster ship market, will the shipyards buck the trend? What actions will Chinese banks take to counter the ever-growing concern of risk management?