New Century's IPO Collapse A Warning To The Shipbuilding Industry

Chinese shipbuilder New Century's decision to postpone a planned US$481mn IPO on Singapore's Strait Times Stock Exchange coincides with a recent slump in global investor sentiment that looks set to permeate the shipping and shipbuilding sectors in China and abroad. CFW cautions that shipyards in China will be one of the industries that stand to lose most from credit restrictions imposed by Chinese policy makers. The long-term outlook for the sector looks good, however, with Chinese shipbuilders poised to overtake their South Korean counterparts in terms of global market share.

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