Jiangsu based Yangzijiang, mainly builds commercial vessels and containerships. The chairman of the company says the purpose of trading in Taiwan, is to attract more customers.
Yangzijiang Shipbuilding listed on the Singapore Stock Exchange in April, 2007. And now it's the biggest Chinese mainland company counted by market value, and also the most profitable one.
The company had the choice of listing in Hong Kong or Taiwan, as its next step. According to the company's chairman, the potential market in Taiwan is the main reason he chose it over Hong Kong. Financing wasn't the main goal.
Ren Yuanlin, Chairman of Yangzijiang Shipbuilding Holdings Ltd. said "We find Taiwan a huge shipping market, as there are many shipbuilding customers. It also has big potential development opportunity for factories. If we go trading in Taiwan, the company is more transparent, and more credible. Taiwan enterprises will know the company. Then, I hope these potential customers will become real ones."
A research paper by brokers in Taiwan shows that companies on the island look positively at the mainland's shipbuilding capacity.
Analysts say mainland shipbuilders booked more than 60 percent of the world's new orders in 2009, and there's been an upward trend.
Yangzijiang is now the Chinese mainland's fourth largest company in the industry, and still going strong. |