China Shipyards May Face $30 Billion Shortage, China Daily Says

By Kyunghee Park

April 8 (Bloomberg) -- China’s shipyards may be faced with cash shortages of about $30 billion over the next three to four years, China Daily reported, citing Li Li, a deputy general manager at Export-Import Bank of China’s ship finance department.

The amount is about a tenth of the $300 billion shortage the global shipbuilding industry may have in the same period, the newspaper said.

Export-Import Bank granted credit lines of 100 billion yuan ($15 billion) to China State Shipbuilding Corp. and 60 billion yuan to China Shipbuilding Industry Corp., the country’s two biggest shipyards, according to the report.

The government, financial institutions and shipbuilders should jointly set up an industry investment fund for shipyards, the newspaper said, citing Li.

To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net