China is expected to unveil new subsidy rules involving the demolition of ships this year, according to China Securities Journal.

The draft is currently in the approval process from related ministries, including the Ministry of Finance and Ministry of Communications.

Some rules will be loosened for companies applying for the demolition of ships, a direct response to the nation's previous plan, which was deemed too strict on companies wishing to demolish ships.

Old rules, such as allowing companies to apply for a government subsidy in the purchase of new ships after the company demolishes its older ones, will remain.

The new plan is expected to dole out 4.56 billion yuan in subsidies for ship breaking, according to an expert familiar with the plan.