Financial sector gears up to support maritime economy

Chinese banks are encouraged to establish maritime economy financial service department in order to optimize credit investment orientations, Shanghai Securities News reported Friday.

Maritime enterprises of different development stages should be guided to get financial support from multi-level capital markets, according to the Financial Service Guidance to Improve and Strengthen Maritime Economy Development.

To promote maritime economy's high-quality development, orientations and directions for support in banking, securities, insurance and diversified financing have been clarified in the guidance, released by eight ministries and commissions, such as the People's Bank of China and State Oceanic Administration.

Maritime-related mortgage loan business innovation will be promoted to provide individualized support to different entities such as key projects on maritime infrastructure building, enterprises on industry chain and fishermen.

Financial institutions in the banking industry are encouraged to optimize credit investment direction and structure to support fast development of key areas in maritime economy's primary, secondary and tertiary industries.

Environmental and social risk censorship will be strengthened and a "one-veto" system for issues concerning environmental protection will be insisted on, according to the guidance.

The guidance also emphasized to regulate various types of mutual insurance, explore catastrophe insurance and reinsurance mechanisms and accelerate the development of shipping insurance, coastal tourism insurance, and environmental liability insurance to expand export credit insurance coverage.

Financial institutions and enterprises, which meet certain requirements, are supported to establish financial leasing company, and financial service modes, such as public-private partnership (PPP) and investment and loan linkage, will also be promoted, the guidance said.

In the past five years, the gross production value of China's maritime industry grew by 7.5 percent annually on average, accounting for nearly 10 percent of the country's GDP, according to the State Oceanic Administration (SOA).

To improve financial services to maritime economy development and promote the transformation of marine economy to high quality and efficiency is in accordance to China's major strategic plans such as the Belt Road Initiative, strong maritime country building, blue economy development and making financial sector better serve the real economy.