China's CHN Energy Buys 11 Bulk Carriers, Enters Sector

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Updated Published

A new player has entered the Chinese ship leasing market. State-backed CHN Energy, China's largest coal mining and utility firm, has acquired 11 bulk carriers from Citic Financial Leasing, marking its entry into the sector. CHN Energy was formed seven years ago through the merger of Guodian Corporation and Shenhua Group.

The acquisition includes 10 shallow draft, 65,000 dwt vessels currently under construction at CSSC Shanhaiguan Shipyard, and one 57,000 dwt secondhand ship.

Despite Beijing's ongoing corruption crackdown, which has led to the detention of several high-profile figures in Chinese ship leasing over the past few years, the sector has recently reestablished itself as a major force in global shipping.

According to data from shipowner association BIMCO published last November, five out of the 10 largest Chinese shipowners are leasing institutions.

A BIMCO report stated; "The entry of Chinese financial institutions into the leasing market has significantly contributed to the growth of the Chinese-owned fleet in recent years."