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China should create a national investment fund dedicated to its shipping industry to help overcome its significant financing challenges, according to the president of Dalian Maritime University. This fund would aim to direct private capital toward vessel upgrades, green technology adoption, smart shipping initiatives, and supply chain improvements, he explained during the Finance and Insurance Forum held at the North Bund Forum 2025 on October 20.
Current government support policies largely focus on short-term incentives, which are not well-suited to the shipping sector’s long investment cycles and high risk profile. Moreover, existing cross-border financial management frameworks have yet to develop institutional mechanisms that meet the global operational needs of shipping firms, particularly in areas such as accounting, international capital flow regulation, and risk management, he noted.
For instance, approximately 85% of international shipping deals are settled in US dollars. Due to inadequate convenience in cross-border settlements, Chinese shipping companies face substantial exposure to exchange rate fluctuations, he added.
He also recommended that China’s policy-based financial institutions establish specialized credit lines for shipping companies, using affordable, long-term funds to promote sustainable growth within the industry. Additionally, he emphasized the need to speed up the development of a green shipping certification system that aligns with international standards while accommodating domestic conditions.
“Because of the absence of established technical standards, evaluation methodologies, and disclosure norms, financial institutions find it difficult to accurately gauge the maturity of green technologies, assess emission reduction efficiencies, and determine residual asset values,” he stated.
This shortfall, he warned, greatly hampers large-scale capital investments in green, low-carbon, and smart shipping projects.
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