Around 130 Chinese-owned ships now fly Malta’s flag

Around 130 ships ultimately owned by Chinese companies are now sailing under the Maltese flag as Chinese leasing groups increasingly use the island to structure financing deals with European shipowners.

The figure was reported by Italian maritime publication Shipping Italy, citing data from shipping valuation and market intelligence provider VesselsValue. Most of the vessels are owned by Chinese leasing companies, with more than 10 such institutions represented in the Maltese registry.

“Currently around 130 Maltese-flagged vessels are effectively owned by Chinese companies,” Shipping Italy reported.

The owners include Bank of Communications Financial Leasing, ICBC Financial Leasing, China Development Bank Financial Leasing and China Merchants Bank Financial Leasing. The fleet comprises LNG carriers, large container ships, chemical tankers and small and medium-sized bulk carriers.

Chinese leasing firms are reportedly establishing Malta-based special-purpose companies to hold vessels financed under long-term bareboat charter agreements. Although the ultimate owner may remain a Chinese financial institution, registration in Malta places the vessel’s operations, crewing standards and environmental compliance under an EU flag administration.

The arrangement can make Chinese-backed financing more acceptable to European charterers, cargo interests and banks concerned about regulatory or commercial exposure to China-linked tonnage.

Chinese leasing activity involving international shipowners slowed amid rising tensions between Washington and Beijing and the introduction of additional US port charges affecting China-linked vessels.

The Malta structure is now helping lessors return to the European market with competitive financing terms.

Malta’s appeal has also been strengthened by amendments to its Merchant Shipping Act introducing the Financial Charter Instrument. The mechanism allows a lessor to register charter agreements and payment obligations as security directly against a Maltese-flagged vessel.

If a charterer defaults or becomes insolvent, the registered instrument provides the lessor with a clearer legal route to recover possession of the ship, rather than relying exclusively on contractual remedies.

The protection ranks behind registered mortgages and certain privileged maritime claims. This means conventional bank debt can remain secured against the vessel while the leasing company retains an additional layer of protection over its ownership rights.

According to Shipping Italy, a Chinese leasing company became the first financial institution to use the new framework, registering instruments against two Maltese-flagged ships shortly after the legislation took effect.

Malta imposes no nationality restrictions on shipowning companies, masters, officers or crews. Combined with its position as Europe’s largest merchant-shipping register, the framework is strengthening Malta’s role as a link between Chinese capital and Western maritime markets.