Research On Financing Of The Shipping Company In China

In the recent years, China's shipping market has developed rapidly under the pushing of the Chinese and International economy and trades. The rapidly changes of the shipping market bring the unprecedented opportunities to the shipping companies. The shipping companies which are in the dynamic development urgently need money to expand its scale to catch up with the pace of the shipping market which has been rapidly developed. In other words, shipping companies need large amount of the money. However, as we all know, shipping companies are typical capital-intensive enterprises. They need large amount of capital investment and have long payback period. The characteristics of the shipping company will lead to its Financing problems in the shipping market. Judging from the current situation, the shipping companies in China which rely solely on the traditional financing model can't meet it self's growing financial needs. The shortage of money will to a large extent restrict the overall development of the shipping industry in our country. Thus, it is necessary for the shipping companies to find a suitable way to finance.This article starts with both broad and narrow dimensions to briefly describe the concept of the shipping companies. And on this basis, it analyzed the reason why the shipping companies need so much money. Then, it introduced the characteristics of the shipping company that they need large amount of capital investment and have long payback period, it also introduced the main channels of financing. Both of them reveal the reason why it hard for Shipping companies to financing.In the chapter three, the article started from the actual situation of shipping market in China, expound comprehensively the current development of China's shipping market and its development prospects, to deeply analyze the reason why the shipping companies need too large amount of money. It is the domestic and foreign economic development that drives the development of the shipping market. Then, it analyzed how the development of the shipping market impacts the shipping companies. That is to say, the shipping companies required substantial funding to expand their fleet and business scale to meet the development of the shipping market. So, it can be concluded that the shipping company will be able to need lots of money and to need financing.In the chapter four, the article comprehensively analyzed the situation of China's shipping companies, used the methods of comparison to compare the different financing channels. From that the article summarized the applicability of each financing channel. Then, it found the current problems which are exist in China's shipping companies through the comparison.Finally, based on the analysis in the above, the article gives some suggestions about how to solve those problems from difficult points of view. It is hopeful to make some contributions to the rapid development of the shipping industry in China.