Rumor is heard that China's large private-owned Rongsheng Heavy Industries is recently suffering from financial difficulties and being in urgent need of liquidity.

Rongsheng's chief executive Chen Qiang said, Rongsheng has been building newbuildings with liquidity fund loan but it is currently in talks with switching it into a 'Supplier credit' loan.

Meanwhile, Rongsheng's revenue for the first half of 2012 declined by 37.2% year-on-year to CNY 5.462bn ($860.6m), while net profit down by 42% to CNY 859m and debt-to-equity ratio increased to 64.4% from 62% in 2011.

As of the end of June, the company's short term loan grew to CNY 17.62bn. Its long term loan went up to CNY 11.04bn, as well.