Chinese banks make yard white list for offshore finance

Dalian: Chinese banks are more cautious of providing finance to the offshore industry to avoid overcapacity according to Chinese bank representatives discussing China's offshore industry at the Marine Money Offshore event in Dalian today.

“Currently most shipyards see the offshore industry as the new growth point and want to enter the industry, however, lots of them don’t have enough capability to build offshore products,” said Gao Zefeng, general manager assistant, transport finance department, at China Exim Bank.

“We are currently making a white list for shipyards involved in the offshore business, and only provide financing to the shipyards on the list,” Gao added.

“It’s not that we don’t support smaller shipyards, we need to avoid the overcapacity problem in the shipbuilding market happening again in the offshore industry,” Gao explains.

Zhang Xu, deputy director, ship finance center, China Development Bank, agreed with Gao, and said CDB is putting together a similar list.

“The domestic shipyards will have to enhance their standards in order to get into the list, it will improve the overall standards of domestic shipyards and also lower the risks of the banks,” Zhang said.[26/06/14]

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