Chinese banks reduce ships**

Bloomberg published an analysis article yesterday (14th) pointing out that based on the continuous appreciation of the renminbi, the data shows that Chinese financial institutions are reducing the amount of loans to shipyards and shipowners, accounting for the proportion of the global financial industry to shipbuilding, ship operations, and ship service loans. It is the first time in five years. However, Western banks have yet to further relax their ship financing credits. Insiders pointed out that shipowners may not be able to obtain sufficient funds from the securities market, and the funds of Chinese financial institutions will only become more important.

Before the financial tsunami, foreign banks basically broke off the overseas ship financing market, but the financial tsunami caused some European and American banks to close their ship financing business, indirectly increasing the development space of banks in Asia. Anaoff, a senior economic analyst at Northern Bank of Germany, pointed out in Beijing in September this year that for the international ship financing market, the Chinese banking industry’s ship financing business has developed rapidly and is expected to increase its international ship financing market share by two times within five years. The current 5% increase to 15%. However, Bloomberg analysts use very different conclusions and quoted data that China's financial institutions are reducing the amount of ship loans.

Bloomberg released data that this year's global financial industry's lending to shipbuilding, ship operations and shipping services reached US$32.3 billion, an increase of 24% year-on-year, but the percentage of Chinese financial institutions fell sharply from 11.2% last year to 0.7. %, the first decline in the past five years. The Bank of China is the only Chinese financial institution that can rank within this year's list of ship-related financing institutions by 60. Last year, there were three institutions ranked within 10.

The article pointed out that China has become the world's largest shipbuilding country. The Chinese government has in 2008 guided banks to increase the amount of credit for ship-related industries. The shipping industry can use this to tighten the credit of major European and American ship financing agencies while still obtaining shipbuilding. funds. However, the agency said that among the BRIC countries, the RMB was the only currency that appreciated against the US dollar last month. Standard Chartered Bank has also expected that the RMB may appreciate another 25% by 2020, making US-denominated loans available to Chinese financing agencies. It is not attractive.

The bank’s unwillingness to use the dollar-settled loan article quoted industry sources as saying that banks are unwilling to provide dollar-settled loans to the shipping industry. China’s financing agencies are strengthening cooperation with foreign banks in order to grasp market changes faster. South Korea's dry bulk carrier company Shi Ting Fanyang obtained US$92.12 million in eight-year loans from Bank of China and ING International in September, and its interest rate was 250 basis points higher than Libor. In 2008, Wuhan Changjiang Phoenix obtained a one-year loan of US$115 million from ICBC, and its interest rate was 95 points higher than that of Libor.

However, the agency did not disclose the data collection method for the loan amount. According to industry insiders, if Western banks have not relaxed ship financing, shipowners may not be able to obtain sufficient funds in the securities market. Loans from Chinese financial institutions are still an attractive source of funds. Liu Wei, an analyst at the China Shipbuilding Industry Economic Research Center, also said that with the number of ships built in China this year, global financial institutions should provide about 20 billion U.S. dollars in loans to overseas buyers, some of which have already been provided by Chinese financial institutions. . He even pointed out that if Western banks failed to provide the shipping industry with sufficient U.S. dollar loans, Chinese financial institutions could not fully fill the gap.

Chinese banks actively expand ship financing Lin Shunhui, deputy governor of China Construction Bank Shanghai Branch, attended the 2010 China Shipbuilding and International Ship Transaction Summit. He said that in the market scale of hundreds of billions of international ship financing markets, the share of Chinese banks is 5%, which is extremely inconsistent with the status of China’s shipbuilding power. He believes that Chinese banks are actively exploring this market and the structure and methods of ship financing are gradually becoming more diversified.

For most Chinese banks, there are still many technical difficulties in the ship financing business. For example, there is no complete and mature financing system, taxation, insurance, registration, investment and financing have not yet been effectively integrated, and the financing cycle for the financing of the marine industry is very long. Basically all over 5 years, are the main constraints.