Shanghai: Chinese banks, avoiding dollar-denominated loans as the yuan appreciates, are scaling back funding to shipyards and vessel owners two years after the government told them to boost their commitment to the industry, Bloomberg reports.
As credit extended to companies building, servicing and operating ships climbed 24 percent to $32.3bn this year, Chinese banks' share shrank for the first time in five years, declining to 0.7 percent of the total from 11.2 percent in the same period of 2009, according to data compiled by Bloomberg. Bank of China Ltd. is the only Chinese company among the top 60 ship lenders after three made last year's top 10, the data show.?"It's not worth borrowing dollars just to provide shipping financing," Qiu Jun, deputy senior manager at Bank of Communications Co.'s marine lending department, said at a conference in Shanghai on December 7. [17/12/10]?
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