Rongsheng sees losses widening in shipbuilding slump

Rongsheng Heavy Industries Group (1101.HKG), the second-largest private shipbuilder in China, says it expects a “significant increase” in net losses in the first half after a global slump decreased demand, Bloomberg reported, citing a Hong Kong exchange filing. Rongsheng’s woes illustrate the difficulties private Chinese shipbuilders face competing in an industry dominated by state-owned yards with government backing and easier access to financing. Rongsheng posted an annual loss last year that widened 15 times to RMB8.7 billion (US$1.4 billion), from RMB572.6 million in 2012. It will lose money for another three years, Barclays analyst Jon Windham said in an April 11 report.