The 7th Shipbro Forum Held Successfully
The Shipbrokers Club has been holding a forum at the end of each year since 2013. The name of the Forum has been maintained as Shipbrokers’ Forum because its early participants were mainly shipbrokers, while the participants of the event have been expanded to nearly all sectors of the shipping and shipbuilding market after seven year’s evolution.
The topics of the conferences held by the Shipbrokers Club has been always close to the shipping and/or shipbuilding market. This time the topics are shipping asset management and exchange and shipping risk management which attracted wide attention from the industry.
The speakers shared their views, understandings and experiences. Panel discussion gests conducted a heated discussion on these two topics, guiding the industry participants to approach the evolving shipping market and inspire broader cooperation space.
Looking back at recent Forums, one of the themes of the 2017 Forum was "the rise of financial shipowners and the evolution of shipowners' composition", which analyzed changes in the structural composition of shipowners. The theme of the 2018 conference is "shippingexchange, financing and brokerage". The conference conducted an in-depth discussion on how to integrate and cooperate with shipping exchange, financing and brokerage. Through further promotion after the conference, preliminary results have been achieved.
The three signing ceremonies in this Forum on shipping asset management and private equity can be considered as the result of the previous two Forums and fully demonstrate that the Forums organized by the Shipbrokers Club are pragmatic and productive.
This year, one of the themes of the Forum was further refined as "management and exchanging of shipping assets", which is not only a summary of the understanding of market evolution after the previous two Forums, but also a discovery and discussion of future hot spots. After more than ten years of development, Chinese financial institutions have occupied an important position in the world's ship financing market, and Chinese financial shipowners represented by leasing companies have also completed the development process from small to large.
Like other industries in China, the new problem we are facing is how to change from big to strong, which cannot be achieved without refined and professional ship asset management. In addition, with the requirement of "penetrating" and "whole-process" regulation adopted by government sectors, banks, leasing companies and other financial institutions are urged to improve their management capability of shipping assets. This conference has carried on the valuable discussion on how to do a good job in ship asset management, how to reduce the cost of ship asset management and how to improve the efficiency of ship asset management.
As one sort of assets, ships inevitably involves transactions and/or exchanges. The meeting made forward-looking and innovative discussions on the transaction of shipping assets, especially on how to realize the exchange of shipping assets on and off the balance sheet through the innovation of financial products, and further enhance the capacity of shipping assets financing and exchange. In particular, it put forward specific ideas and/or suggestions on how to activate the transaction of ship private equity funds although there is a long way to go for legalization.
The second theme of the Forum is "how to use shipping derivatives to manage the risk of market volatility". For years, faced with a volatile shipping market, there are few Chinese shipping companies to use derivatives to manage their market risks, no matter traditional shipowners or newly developing financial shipowners. At the same time, it is also worth noting that mature shipping derivatives are all at abroad, and China's domestic shipping derivatives market is still shapeless and wandering between legal and illegal, after nearly a decade of exploration. What are the obstacles holding back the development of Chinese shipping derivatives market and is there any solutions to find a way out?
One of the positions of the Shipbrokers Club is to find markets andmatch deals. The Club believes that the main causations of above-mentioned problems are presumably lack of exchange between physical and paper market. The physical shipping market participants have been exploring by their own understanding of derivatives in vain on one side, while the paper or future market institutes are also making their own product with no or less exchange with the physical side. A good product can never be made without exchange between demand and supply. Therefore, we invite professionals from paper and physical market, and let them have a face to face exchange in this Forum. First class exchanges, paper brokers, future companies will meet, maybe first time, with shipowners, ship managers, shipbrokers, shipbuilders, etc. After the effective exchange, it must play a positive role inpromoting the development of China's shipping derivatives market.
Look forward to more highlights in next year's Shipbro Forum.