SHIP FINANCE
Chinese leasing houses have played an increasingly significant role in the global ship finance market over the past decade. Today, there are over 80 leasing houses in China offering ship finance, with 31 of them, by our count, providing financing in US Dollars. As an experienced financial advisor, HIT Marine works with all Chinese leasing houses actively pursuing transaction opportunities. We guide shipowners through every step of structuring financial or operating leases, starting from identifying the right counterpart to facilitating termsheet negotiations and contract signing.
Email: shipfinance@hitco.com.cn
NEWBUILDING
With China accounting for two-thirds of the global newbuilding orderbook, thousands of newbuilding orders have been placed at Chinese shipyards in recent years. HIT Marine offers newbuilding brokerage services to shipowners looking to build vessels in China. Over the past two decades, HIT Marine has successfully concluded more than 100 newbuilding transactions across various segments, including bulk carriers, feeder containerships, multi-purpose vessels, crude and product tankers, as well as offshore vessels.
Email: newbuilding@hitco.com.cn
SHIP INVESTMENT
Over recent years, private and institutional investors in China and Southeast Asia have shown increasing interest in shipping investments. Leveraging its deep expertise in shipping cycles, HIT Marine supports clients in identifying lucrative ship investment opportunities through sale-and-leaseback brokerage services and comprehensive market analysis. Its expertise spans the dry bulk carrier, product and chemical tanker, and MPP/heavy lift carrier sectors. Additionally, HIT Marine occasionally contributes direct equity investments to carefully selected projects.
Email: snp@hitco.com.cn
ABOUT US
Founded in 2001 by Dr. Li Sheng, HIT Marine is a boutique shipbroking firm specializing in Newbuilding Brokerage and Financial Advisory services, with a focus on Chinese Leasing soltuions.
With its headquarters in Shanghai and a branch office in Singapore, HIT Marine is deeply rooted in Asia while maintaining a global perspective in its operations. Backed by a high-caliber team with extensive shipping expertise, the firm delivers exceptional service to clients worldwide.
MARKET
ClarkSea Vs. China Newbuilidng Price Index (CNPI)
Published by Clarksons, ClarkSea Index measures average earnings accross all vessel sectors. In August 2016, ClarkSea Indext touched bottom since 1990 with average earnings accross all vessel sectors dipping to USD 7,364 per day. China Newbuilding Price Index (CNPI), assessed and compliled by a panel consisting of 21 international and local broker houses primarily focused on China's Newbuilding market, also reached its historical low around that period of time.
Growth of China Leasing
Houses
The number of leasing houses in China offering ship financing in US dollars nearly doubled over the past three years, reaching a total of 31, of which 18 are backed by financial institutions, i.e. state-owned banks. 25 out of 31 lessors are actively seeking transaction opportunities with foreign shipowners, while the remaining ones focus exclusively on domestic clients.
Comfortable Margin Levels
Among the 25 Chinese lessors actively seeking transaction opportunities with foreign shipowners, six can offer margins below 200 basis points (bps), specifically between 150 bps and 200 bps, making them as competitive as major Western banks. Meanwhile, four lessors target margins above 300 bps, ranging from 300 bps to 350 bps, which remain significantly more affordable compared to alternative debt funds. Competition is particularly intense in the 200 bps to 300 bps range, where many lessors are vying for deals.
China Shipbuilding Monthly Report
Throughout year 2024, The China Newbuilding Price Index (CNPI) rose from 1,066 points to 1,129 points (as of November 2024), up 6.0% year-on-year, as the valuation on 16 benchmark ship types continued to appreciate across the board. The dry bulk carrier composite index (CNDPI) rose 7.9% year-on-year to 1,164 points, the oil tanker composite index (CNTPI) rose 7.1% year-on-year to 1,267 points, and the containership composite index (CNCPI) rose 3.1% year-on-year to 1,111 points.
HIT Maine is a panel broker of CNPI.
Subscribe to our Monthly China Shipbuilding Report
Frequently Asked Questions about Chinese Leasing
Presentation at Marine Money Shanghai
November 2024
Join our Managing Partner of Ship Finance, Mr. Berlin Li, at the Marine Money event in Shanghai on November 6, 2024, where he discussed the development and outlook of the Chinese leasing market. During his presentation, you'll gain insights into the latest trends, the market's growth, and its competitive strengths compared to other financing sources.
Interview by Shipping & Finance
October 2024
Mr. Berlin Li was invited to deliver a presentation on the Chinese leasing market at the 40th Anniversary of the Costas Grammenos Centre for Shipping, Trade, and Finance, where he earned his master’s degree with distinction in 2012. During the event, he also received an interview from Greece's Shipping & Finance newspaper.