Who has been helping CCP's Shanghai Jiangnan-Changxing Shipbuilding Company Limited build aircraft carriers?

Shanghai Jiangnan-Changxing Shipbuilding Company Limited（上海江南长兴造船有限责任公司） is a subsidiary of China State Shipbuilding Corp(中国船舶工业集团有限公司, CSSC).

2020 Annual Report of China State Shipbuilding Corp: The actual controller of CSSC is the State Council（中华人民共和国国务院）, which is controlled by Chinese Communist Party(CCP,中国共产党), but it has not disclosed related-party transactions with the Chinese government and state-owned banks such as China Construction Bank, which is also controlled by the State Council of CCP. It also shows that it has obtained US dollar and Swiss franc loans and issued US dollar and euro bonds.

Bond prospectus showed that as of 30 September 2016, CSSC was granted credit facility of 100 billion RMB by Export-Import Bank of China followed by 91.5 billion RMB by Bank of China, 32 billion by China Construction Bank as well as credit supplied by other state-owned banks.

The prepayments listed in the 2020 annual report show that suppliers include CAMERON INTERNATIONAL CORPORATION, a Texas company, and WARTSILA FINLAND OY, a Finnish company and Swedish company Wartsila Sweden AB. The 2021 annual report has no Texas, Finnish and Swedish companies abovementioned, suggesting that either the supply or receipt has been confirmed, or the refund has been made, in short, there must be a contractual relationship. Shipbuilding is a big project, and it is normal for the aging to exceed 1 year. Usually, the reasons why the advance payment of Chinese state-owned enterprises are held in the account for a long time: 1. On the grounds that the invoice has not been received and the procedures are incomplete, confirmation of receipt of the goods or the temporary estimation is deliberately not done on the account, the cost is distorted, and the profit is forged; 2. The goods have been sent to downstream customers. , do not transfer prepayment to other accounts to engage cover up stealing fund.

The suppliers listed in the prepayments in the 2021 annual report of China Shipbuilding include Korean companies Dongsung Finetec co., Ltd, PANASIACO., LTD, and German companies MAN Diesel SE and MTU. MTU's 2021 annual report said that it solder engines in China.

The foreign currency monetary funds of CSSC in 2021 prove that it also has business relations with Japanese, Belarus, Australia, Denmark, Canada, Singapore, India and Sweden. Why does CSSC want to contact Japan? Accounts receivable proves that it has government customers. CSSC's 2021 annual report continues to conceal related-party transactions with the Chinese government and Chinese state-owned banks, as well as related-party transactions with key management personnel. It also failed to disclose actual controller CCP lead by Xi Jinping in the related party relationship section of footnote.








In 2021, the long-term borrowings of CSSC (excluding the part that is due within one year and classified to current liabilities) has a net increase of 26.7 billion. The 2021 annual report shows that CSSC has obtained loans denominated in US dollar more than 2.9 billion, Swiss franc more than 77.7 million, and Norwegian krone more than 37 million, and still have bonds payable denominated in US dollar more than 1.3 billion and euro nearly 300 million respectively. Foreign currency receivables prove that it is likely to include customers from the euro area, the United Kingdom, Hong Kong, Macau, Norway, Switzerland and other regions.

CSSC mainly issued notes, bonds or other financial instruments via Chinese Interbank Market. China National Nuclear Corporation, China State Shipbuilding Corporation, China Electronics Technology Corporation, Xinjiang Production and Construction Corps, China General Nuclear Power Corporation, China Construction, etc. all issue bonds in this market.

There are many foreign investors trading in the market.Some foreign financial institutes are foreign branches of CCP banks that take deposits or issue notes in Hong Kong and overseas. 

Some are pure foreign financial institutes which fail in stewardship by investing in CCP.

List of foreign players in China’s interbank bond market. 

Part of list: https://cpajim.blogspot.com/2021/12/346-foreign-institutional-investors.html 

List 2: https://cpajim.blogspot.com/2021/12/658-foreign-institutional-investors.html