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Deutsche Bank: China's shipping loans could trigger next crisis

State-owned banks in China and their leasing companies are pumping enormous sums into new ships these days, but the risk is huge and the banks could find themselves in the same position as the German banks, warns Deutsche Bank's Global Head of Shipping, Klaus Stoltenberg.

Photo: Erria

HAMBURG:

Chinese state-owned banks and their affiliated leasing companies have entered a dangerous path with their massive venture into financing new vessels - a path that could potentially, in a few years, put the banks in the same position as the German shipping banks, which have lost massive sums of money during the crisis in recent years as freight rates and ship values have collapsed throughout the industry, says Deutsche Bank's Global Head of Shipping, Klaus Stoltenberg.

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