Chinese now dominate global shipping finance: Should Indian companies tap into it?
The retreat of the traditional forms of ship finance since the financial crisis, prompted by the Lehman Brothers crash and subsequent turmoil since 2008, has forced shipowners to seek alternative funding methods for replacement tonnage. 8Since 2008 it has been well publicized that the traditional European and US banks have worked hard to reduce their exposure to the volatile shipping markets and they have been running down their portfolios. 8Similarly, many of the recent IPO offerings have failed to attract strong levels of interest, often resulting in disappointing failure to reach target price. 8Next came the US hedge funds which for a while became ‘quite sexy’ for investors but lost their appeal as once again the volatile shipping markets put an end to earning a ‘fast buck’ for those seeking a quick return from that vehicle. 8Chinese finance companies have now entered the fray and a diverse range of international shipping companies are now taking advantage of the new source of finding that is available. 8The Chinese are today among the biggest financiers in the market. 8If you are an Indian company looking for finance, should you approach the Chinese? Click on Reports for more