The ship industry is a strong cyclical industry, with the duration of 7-10 years. The boom-up of global ship industry shall wait for 2-3 years and China will take the lead.

In 2013 and 2014, new building orders and ship price in China have picked up to ensure performance of private shipyards increasing in 2015 and 2016. 2017 will see the rally of private shipyards.

In 2013, newbuilding orders in Chin have increased by 242%.In the first eight months of 2014, the newbuilding orders rose 36% compared with the same period last year. The price index gained a steady growth in 2013 and maintained superior level in 2014 with the large increase of 12%. In addition, the orders for naval ships can be optimistic before 2020. During 2020, China is expected to build multiple aircraft carrier battle groups and then orders for the naval ships will continuously increase.

In this September, CSIC officially released on Opinions on Some Major Issues Concerning Comprehensively Deepening the Reform, aiming to boost the reorganization of high quality asset, being rejected into a listed company. In the future, the ship assets of CSIC in east China and south China may be confronted with secondary integration.

Ship equipments accounted for 40%-50% of ship value, whose cyclicality is earlier than the shipbuilding industry. The global offshore equipment industry is in prosperity period. The main customers are concentrated on Chinese offshore construction capacity and offshore equipment industry in China will enter into harvest time.