China shipbuilder shores up yuan’s use in trade via landmark containership deal
Hudong-Zhonghua Shipbuilding is due to deliver six vessels to a Hong Kong containership lessor by 2028
A prominent state-owned Chinese shipbuilder known for being at the centre of the nation’s naval modernisation has signed a deal that will help advance the yuan’s internationalisation while further consolidating China’s leading role in containership manufacturing.
China’s Hudong-Zhonghua Shipbuilding, based in Shanghai, has entered into an agreement with Hong Kong-based containership lessor Seaspan Corporation for the construction of six containerships, each with a capacity of 13,600 TEUs (20-foot equivalent units), according to a statement posted on social media on Friday.
The order also marked the first such deal made in yuan, the statement added, without providing details of the purchase price. International shipbuilding contracts are usually settled in US dollars.
“It is one of the few large shipbuilding orders signed directly by foreign shipowners with Chinese shipbuilding companies using this new payment method,” the statement said. “It is of great significance to promote the internationalisation of the yuan.”