Financial Demand within Chinese Marine Industry Reviewed by China's Economy & Policy-Gateway International Group
17 Feb 2012 • by Natalie Aster
Many provinces in China, including Zhejiang, Guangdong and Shandong, have indicated that they intend to make every effort to develop their ocean related economies and marine industries. In accordance with the three industrial sub-sector classifications used in the calculation of gross domestic product (GDP), the marine industry can be divided into three parts, the primary marine industry, the secondary marine industry and the tertiary marine industry. Support for the marine industry by the Chinese financial industry continues to show some defects, which have been studied in only a very limited manner. This paper provides an in-depth analysis of the features of financial demand within the three marine industries as a reference for the reform of the related financial system.
According to the report “Financial Demand within the Three Marine Industry Sectors in China” by China's Economy & Policy-Gateway International Group, the primary marine industry is dominated by the marine fishery. The modern marine fishery bears unique characteristics and financial demand within this industry shows some basic features which have exposed the imperfections in the Chinese situation.
Financial Demand within the Three Marine Industry Sectors in China
Published: January, 2012
Price: US$ 200,00
First of all, there is a large demand for credit funding. Generally speaking, credit demand in the grain, cotton, edible oil and other plant industries has declined in recent years, while credit demand in the cash crops and aquaculture industries has increased. With the restructuring and market-oriented development of the primary marine industry, Chinese farmers have started to focus on cash crops and aquaculture, which can better meet market demands, in order to increase their revenue. There are three main reasons for the increased credit demand. First, the fishery operators have a reduced ability to accumulate capital internally and limited financing channels, so they rely heavily on bank credit. Second, rural tax reform has reduced production costs, which has strengthened the ability of farmers to receive credit financing, and further fueled their enthusiasm. Third, the ongoing restructuring of the marine fishery also requires substantial financial support; for example, many fishermen and fishery businesses are turning to aquaculture, and large-scale intensive industrial agglomeration has taken shape. Second, the needs of those who require financing have gradually changed.
More information can be found in the report “ Financial Demand within the Three Marine Industry Sectors in China” by China's Economy & Policy-Gateway International Group.
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