Chinese shipbuilding industry's profits and new order results during January-February period in 2012 have plunged by 15% and 40% each, year-on-year.
IHS Global Insight pointed out that China's 57 of large-sized yards' profits, in the first two months, have dropped by 26%, on average.
Moreover, about a third of China's overall yards have faced with deficits.
Therefore, the Chinese government has taken action to save yards, such as tax reduction, funding, etc. Governmental support has been helpful to some degree, however, it does not seem to have taken care of fundamental problems.
Amid over-tonnage in shipping industry and over-capacity in shipbuilding industry, M&As between Chinese shipbuilders look increasingly indispensable.