The China Association of the National Shipbuilding Industry has urged domestic banks to carry out individual risk assessment when lending to shipbuilders, rather than evaluating shipbuilding industry as a whole.

CANSI said shipbuilding stalwarts need support from lenders to ride out the downturn.

“Shipbuilding is a cyclical business and the current downturn will last for a while. I don’t think things will improve in the second half of this year,” CANSI director Zhang Guangqin told Xinhua news agency.

“But Chinese banks should not lump all yards together. Major players like state yards in Dalian and Shanghai, and Rongsheng Heavy Industries and Yangzijiang Shipbuilding, still have their underlying strength,” he added.

source:asiasis