HuaXia Financial Leasing (HXFL) is the latest Chinese finance house to make its shipping debut, signing and finalising deals for up to 12 bulker newbuildings worth $384m.
Shipping sources said the leasing house has struck a deal with Nantong Xiangyu Shipbuilding & Offshore Engineering for four firm 63,500-dwt ultramaxes without options.
They added that it is also finalising an order for up to eight similar vessels with China State Shipbuilding Corp's Chengxi Shipyard— four firm ships with options for four more.
Executives at Nantong Xiangyu and Chengxi declined to comment. HXFL was not available for comment.
The leasing company is said to be paying about $32m for each for the vessels, which will be built to comply with the Phase 3 emissions standards of the International Maritime Organization's Energy Efficiency Design Index.
It is scheduled to take delivery of the Nantong Xiangyu newbuildings in the first half of 2024. The bulkers at Chengxi are slated for delivery from the end of 2023.
Some shipbuilding observers believe HXFL is ordering the ships speculatively, as there has been no mention of charters. However, shipping sources in China said it is in talks with several operators over employment.
Sources added that although HXFL is headquartered in Beijing, its shipping team is operating out of Shanghai.
HXFL is not the only Chinese financial leasing house to have joined the shipping business this year. Citic Financial Leasing of Citic Group was another.
In September, Bill Guo Fangmeng of Citic told TradeWinds that his company was in negotiations for three or four shipping deals, which could take the form of operating or finance leases in the dry bulk, tanker or container ship sectors.
Sources said more leasing companies are keen to join shipping.
"We are seeing more Chinese leasing firms showing interest in the maritime industry in ... recent months," said a source.
"They have previously invested in the aviation industry and real estate business, but these sectors are currently not making profits. As a result, they are turning their attention to logistics and infrastructure that includes shipping."
Because of the improved shipping market and rising asset prices, several Chinese financial leasing companies have cashed out ships.
AVIC International Leasing sold a kamsarmax newbuilding that is to be delivered next year from Shanhaiguan Shipbuilding for a near-$8m profit, while China Huarong Financial Leasing fetched a premium price of $19.2m for the 56,400-dwt bulk carrier Hua Rong 1 (built 2012) when it was valued at about $14.6m by VesselsValue.
