Chinese capital eyes global maritime hub

A large-sized state-run company from China has joined the contest to acquire the Baltic Exchange, the international hub of cargo shipping and trade of merchant vessels. Based in the U.K., the 272-year-old venue for futures exchange announces the Baltic Dry Index (BDI), the benchmark of trading of maritime markets. Analysts say that China, which is militarily pursuing to be a maritime powerhouse, is seeking to occupy the center of operation of the world’s merchant vessels.

With Anbang Insurance of China absorbing high-end hotels of the U.S., China’s recent acquisition spree is drawing keen attention in the global market as several Japanese home appliance makers have been merged into the Chinese capital one after another.

According to the Reuters Report on Thursday, China Merchants Group made an official proposal to acquire the Baltic Exchange through its affiliate China Merchants Securities. The Reuters Report predicted, “Once China Merchants Group successfully acquires the Baltic Exchange, it will have a much bigger clout in the maritime derivatives market.”

Other contenders jockeying for the Baltic Exchange include the London Stock Exchange, the Singapore Exchange (SGX), the Chicago Mercantile Exchange (CME), the Intercontinental Exchange (ICE), and Platts. The competition has grown much fiercer with China Merchants Group jumping on the wagon.

Established under the name of Virginia and Baltic Coffeehouse in 1744, the Baltic Exchange earned its current title in the mid 19th century.

It has some 380 maritime companies as stockholders and boasts a membership over 600 entities. The Baltic Dry Index serves as highly valuable data in reading the business trends and market conditions.

In 2011, it launched a platform for freight derivatives through one of its subsidiaries.

Sources told that China Merchants Group is likely to bid a higher price, adding a "premium" to the prices proposed by its rivals. So far the acquisition price was estimated to be 118 million dollars.

China Merchants Group’s pursuit to acquire the European exchange is in the same vein with the country’s recent spree to buy up the maritime and commodities assets from Europe during the downturn of the world’s maritime transportation market. Founded in 1872, the group is a state-run giant

베이징=구자룡특파원 bonhong@donga.com