Yangzijiang turns its sails towards its core shipbuilding business

While decreasing exposure in held-to-maturity assets.

Even with the Asian and European slowdown clouding the business, the offshore engineering business has resolved to focus more on its shipbuilding business, targeting large containership orders and natural gas vessels.

According to analysts from OCBC, due to the shift, the group has decreased its holdings in held-to-maturity assets segment further from RMB10.75b in 2Q15 to RMB 9.74b in 3Q15.

However, even with the oversupply situation for containerships and dry bulkers, OCBC says Yangzijiang is ready to take the risk.

“YZJ is also circumspect in its strategy, given the weak global economic growth which would affect the shipping business and hence newbuild orders,” OCBC said.