Eliminating excess in shipbuilding industry

At present, China has become the world's largest shipbuilding country. However, due to the downturn in the global shipping and shipbuilding markets, China's shipbuilding market has been impacted in recent years, with a significant reduction in new ship orders, difficulties in corporate financing, and increased risks of performance and delivery. The development of the shipbuilding industry is facing a more severe situation.

"The shipbuilding and marine engineering industry has cyclical risks and is deeply influenced by the shipping market and the global economy. Currently, the trend of transaction decline in the shipbuilding market is obvious, and the upward trend of new ship prices is hindered." Feng Fuzhang, an analyst at CITIC Securities, said that in the future, with the gradual implementation of national policies supporting the shipbuilding industry, especially the merger and reorganization of some backbone shipbuilding enterprises, the overall competitiveness of the industry is expected to be improved.

In August of this year, the People's Bank of China released the Q2 China Monetary Policy Implementation Report, proposing to actively promote mixed ownership reform, encourage backbone shipbuilding enterprises to implement mergers and acquisitions, promote the formation of strategic alliances between large shipbuilding enterprises and upstream and downstream enterprises, and guide small and medium-sized shipbuilding enterprises to adjust their business structure. This has pointed out the direction for the development of the industry.