According to James Chen, director of smarine advisors, China Leasing Company's business grows by 25% annually, and the size of its portfolio will reach $59 billion in 2019. This means that the market share of Chinese leasing companies in the global ship financing sector is between 20% and 25%.

 

 

 

 

 

Xu Wei said that most of the shipping segments were able to successfully cope with the crisis brought about by the epidemic and planned to expand the portfolio in the future.

 

 

 

Although this will be a small part of the portfolio

 

-Guangzhou international air freight rate table

 

 

 

But Fang also pointed out that as the traditional European ship financing banks continue to withdraw from the market, leasing companies still have the opportunity to build their own portfolio.

 

 

 

Fang Xiuzhi, director of financial leasing and shipping business of BOCOM, disclosed that the company invested 3 billion US dollars in the first half of this year. "While the outbreak does affect market trends," we have seen a recovery in all segments. We are paying more attention to anti globalization. "

 

 

 

 

 

 

Ji Woon Kim, shareholder of vedderprice, added that China leasing company has become the main partner of global shipowners in cross-border Railway International Logistics and is no longer just filling the gap.

 

 

 

 

 

 

 

Xu Wei said that CMB leasing gives priority to assets related to long-term freight contracts, which will bring stable cash flow.

 

 

 

 

 

Xu Wei, deputy general manager of the shipping finance department of China Merchants Bank, agrees with Fang Xiuzhi that geopolitical factors such as anti globalization and Sino US trade war will have a greater impact on shipping.

 

 

 

 

 

China's leasing companies are becoming more sophisticated, he said. They will be careful to find the right projects and be cautious about how and to whom to lend.

 

 

 

 

 

 

 

For most industries, the impact of the epidemic on shipping will be short-lived, the Chinese leasing company said. Their main concern is the growing impact of anti globalization and geopolitics.

 

 

 

James Chen said leasing companies focused on strengthening their balance sheets and active assets.

 

 

 

CMB leasing took a more cautious attitude in the first half of this year, slowing down leasing activities. It is understood that the leasing company is likely to maintain its portfolio at about $7 billion this year, which is the same as that in 2019.

 

 

 

Although China's leasing companies are latecomers in the field of ship financing, this force has rapidly become an important player in the industry.

 

 

At an online meeting on capital link on Tuesday, the heads of two major Chinese leasing companies said they were confident that shipping could successfully cope with the challenges posed by the epidemic.

 

 

 

"Equally important is who runs the company, who is the investor, and who runs the team. We are looking for partners with a good track record, good cash reserves and adequate preparation for market volatility, "Xu added, adding that CMB leasing is still willing to work with asset investors, although it will account for a small proportion of the portfolio.

 

 

"It's mainstream, it's no longer just an option," says James Chen.

 

 

"The challenge for us is that the demand for financing is more limited. For rental companies, it's hard to find enough good projects. "

 

 

 

Fang added that the sharp drop in new shipbuilding orders this year should also be a good sign for future shipping, as ship supply will be lower than market demand.

 

 

China Leasing Company: still optimistic about shipping

 

 

 

Shipping industry at 10:00, September 21, 2020