China Financial Leasing Industry Report，2011
After the rapid development during the "Eleventh Five-Year" (2006-2010) period, China’s financial leasing industry gradually returned to reason in 2011, and achieved annual business volume of RMB 930 billion, up 32.9% year on year, far lower than the CAGR of 205.8% during the “Eleventh Five-Year” period. There are two main reasons for the gap: First, the growth of construction machinery, ship and other downstream industries slowed down; Second, the government adopted a tight monetary policy, impacting the capital source of both domestic-funded and foreign-funded leasing companies.
At the end of 2011, the Ministry of Commerce of China promulgated the “Guidance on Promoting the Development of Financial Leasing Industry during the Twelfth Five-Year Period”, paying more policy attention on the financial leasing industry; in addition, among other factors, more than 100 financial leasing enterprises set up in 2011 will start operation in succession, therefore, it’s expected that China’s financial leasing business volume will reach RMB 1.3 trillion in 2012.
The Report analyzes the current status of China’s financial leasing industry, and focuses on the operation of three major types of financial leasing companies in China, and the development of aviation, ship, construction machinery, medical equipment and other major financial leasing market segments.
By regulatory authority, financial leasing companies in China can be categorized into financial leasing companies, foreign-funded leasing companies and domestic-funded leasing companies.
Financial leasing companies are mostly invested by banks, and take the lead in terms of the level of financial leasing. In 2011, there are 20 financial leasing companies in China, accounting for RMB 390 billion (41.9%) of the total financial leasing business volume in the year.
Meanwhile, foreign-funded leasing companies have reinforced their strength continuously, especially after the transfer of the right to examine and approve foreign-funded leasing companies to lower authorities in 2010. As of the end of 2011, there are 200 foreign-funded leasing companies in China, an increase of 80 compared with 2010; the financial leasing business volume also increased by 69.2% year on year to RMB 220 billion. In 2012, with the implementation of “Foreign Investment Industry Guidance Catalog (2011 revision)”, the category of “Foreign-Invested Financial Leasing Company” will be adjusted from “Restricted” to “Allowed”, and the quantity and financing scale of foreign-funded leasing companies will further expand in the future.
From the perspective of application field, the development of financial leasing businesses has been quite mature in industries such as aviation, ship, construction machinery and medical equipment. Typical enterprises include BOC Aviation Pte Ltd., Minsheng Financial Leasing Co., Ltd., Zoomlion Finance & Leasing Co., Ltd. and Far East Horizon Limited.
In 2010, BOC Aviation Pte Ltd delivered a total of 32 aircrafts to customers, which, coupled with effective financing strategy and good financial constraint mechanism, created USD168 million of net income after tax for the company. In the first 10 months of 2011, the company already raised more than USD 1.5 billion, which can be used for the financing of more than 30 aircrafts. The full-year net income after tax is expected to reach USD 175 million.
Minsheng Financial Leasing Co., Ltd., founded in April 2008, has entered into cooperation with a number of ship manufacturers including China Shipbuilding Industry Corporation, China Oilfield Services Limited, China Changjiang National Shipping (Group) Corporation, Jiangsu Rongsheng Heavy Industries Ltd., CCCC Tianjin Dredging Co., Ltd., and become the largest enterprise in China’s ship leasing market.
Zoomlion Finance & Leasing Co., Ltd., a subsidiary of Zoomlion, is one of the earliest enterprises involved in the construction machinery financial leasing market in China. It now has two business platforms: Zoomlion Finance & Leasing (Beijing) Co., Ltd. and Zoomlion Finance & Leasing (China) Co., Ltd. In addition, it provides financial leasing services in Australia, Hong Kong, Italy, the United States, Russia and other regions. Its financial leasing transaction volume has increased continuously, from RMB 2.4 billion in 2008 and RMB 9.4 billion in 2009 to RMB 17 billion in 2010.
At the end of 2011, the Ministry of Commerce of China promulgated the “Guidance on Promoting the Development of Financial Leasing Industry during the Twelfth Five-Year Period”, paying more policy attention on the financial leasing industry; in addition, among other factors, more than 100 financial leasing enterprises set up in 2011 will start operation in succession, therefore, it’s expected that China’s financial leasing business volume will reach RMB 1.3 trillion in 2012.
The Report analyzes the current status of China’s financial leasing industry, and focuses on the operation of three major types of financial leasing companies in China, and the development of aviation, ship, construction machinery, medical equipment and other major financial leasing market segments.
By regulatory authority, financial leasing companies in China can be categorized into financial leasing companies, foreign-funded leasing companies and domestic-funded leasing companies.
Financial leasing companies are mostly invested by banks, and take the lead in terms of the level of financial leasing. In 2011, there are 20 financial leasing companies in China, accounting for RMB 390 billion (41.9%) of the total financial leasing business volume in the year.
Meanwhile, foreign-funded leasing companies have reinforced their strength continuously, especially after the transfer of the right to examine and approve foreign-funded leasing companies to lower authorities in 2010. As of the end of 2011, there are 200 foreign-funded leasing companies in China, an increase of 80 compared with 2010; the financial leasing business volume also increased by 69.2% year on year to RMB 220 billion. In 2012, with the implementation of “Foreign Investment Industry Guidance Catalog (2011 revision)”, the category of “Foreign-Invested Financial Leasing Company” will be adjusted from “Restricted” to “Allowed”, and the quantity and financing scale of foreign-funded leasing companies will further expand in the future.
From the perspective of application field, the development of financial leasing businesses has been quite mature in industries such as aviation, ship, construction machinery and medical equipment. Typical enterprises include BOC Aviation Pte Ltd., Minsheng Financial Leasing Co., Ltd., Zoomlion Finance & Leasing Co., Ltd. and Far East Horizon Limited.
In 2010, BOC Aviation Pte Ltd delivered a total of 32 aircrafts to customers, which, coupled with effective financing strategy and good financial constraint mechanism, created USD168 million of net income after tax for the company. In the first 10 months of 2011, the company already raised more than USD 1.5 billion, which can be used for the financing of more than 30 aircrafts. The full-year net income after tax is expected to reach USD 175 million.
Minsheng Financial Leasing Co., Ltd., founded in April 2008, has entered into cooperation with a number of ship manufacturers including China Shipbuilding Industry Corporation, China Oilfield Services Limited, China Changjiang National Shipping (Group) Corporation, Jiangsu Rongsheng Heavy Industries Ltd., CCCC Tianjin Dredging Co., Ltd., and become the largest enterprise in China’s ship leasing market.
Zoomlion Finance & Leasing Co., Ltd., a subsidiary of Zoomlion, is one of the earliest enterprises involved in the construction machinery financial leasing market in China. It now has two business platforms: Zoomlion Finance & Leasing (Beijing) Co., Ltd. and Zoomlion Finance & Leasing (China) Co., Ltd. In addition, it provides financial leasing services in Australia, Hong Kong, Italy, the United States, Russia and other regions. Its financial leasing transaction volume has increased continuously, from RMB 2.4 billion in 2008 and RMB 9.4 billion in 2009 to RMB 17 billion in 2010.
Contents
1. OVERVIEW OF FINANCIAL LEASING INDUSTRY1.1 Definition and Characteristics of Financial Leasing
1.2 Business Forms and Application Range of Financial Leasing
2. OPERATING ENVIRONMENT OF FINANCIAL LEASING INDUSTRY IN CHINA
2.1 Policy Environment
2.2 Economic Environment
3. OPERATION OF CHINA FINANCIAL LEASING INDUSTRY
3.1 Industry Development
3.1.1 Global Status
3.1.2 Development
3.1.3 Potential
3.2 Operation of Financial Leasing Enterprises in China
3.2.1 Enterprise Types and Quantity
3.2.2 Financial Leasing Companies
3.2.3 Domestic-funded Leasing Companies
3.2.4 Foreign-funded Leasing Companies
3.3 Regional Development
4. KEY SECTORS OF CHINA FINANCIAL LEASING INDUSTRY
4.1 Aviation
4.1.1 Development of China Air Transport Industry
4.1.2 Financial Leasing Market
4.1.3 Aircraft Leasing of Airlines
4.1.4 Constraints
4.2 Ship
4.2.1 Development of China Ship Industry
4.2.2 Financial Leasing Market
4.2.3 Features of Financial Leasing
4.3 Construction Machinery
4.3.1 Development of China Construction Machinery Industry
4.3.2 Financial Leasing Market
4.3.3 Financial Leasing Enterprises
4.4 Medical Equipment
4.4.1 Development of China Medical Equipment Industry
4.4.2 Financial Leasing Market
4.4.3 Competition in Financial Leasing
4.4.4 Problems of Medical Equipment Financial Leasing Market
4.5 Printing Equipment
4.5.1 Development of China Printing Equipment Industry
4.5.2 Financial Leasing Market
4.5.3 Problems of Printing Equipment Financial Leasing Market
4.6 Rail Transport Equipment
4.6.1 Development of China Rail Transport Market
4.6.2 Financial Leasing
4.7 Telecommunication and IT
4.7.1 Development of China Telecommunication and IT Industry
4.7.2 Financial Leasing
4.8 Security
4.8.1 Development of China Security Industry
4.8.2 Financial Leasing
4.9 Radio and Television
4.9.1 Development of China Radio and Television Industry
4.9.2 Financial Leasing
4.9.3 Financial Leasing of Key Enterprises
5. KEY ENTERPRISES IN CHINA FINANCIAL LEASING INDUSTRY
5.1 CDB Financial Leasing Co., Ltd.
5.1.1 Profile
5.1.2 Operation
5.1.3 Financial Leasing Business
5.1.4 Major Events
5.2 ICBC Financial Leasing Co., Ltd.
5.2.1 Profile
5.2.2 Operation
5.2.3 Financial Leasing Business
5.3 BOC Aviation Pte. Ltd.
5.3.1 Profile
5.3.2 Operation
5.3.3 Financial Leasing Business
5.4 CCB Financial Leasing Co., Ltd.
5.4.1 Profile
5.4.2 Operation
5.5 Minsheng Financial Leasing Co., Ltd.
5.5.1 Profile
5.5.2 Operation
5.5.3 Financial Leasing Business
5.6 Bank of Communications Finance Leasing Co., Ltd.
5.6.1 Profile
5.6.2 Operation
5.7 CMB Financial Leasing Co., Ltd.
5.7.1 Profile
5.7.2 Operation
5.8 China Huarong Financial Leasing Co., Ltd.
5.8.1 Profile
5.8.2 Operation
5.8.3 Financial Leasing Business
5.9 Jiangsu Financial Leasing Co., Ltd.
5.9.1 Profile
5.9.2 Operation
5.10 Far East Horizon Limited
5.10.1 Profile
5.10.2 Operation
5.11 Hebei Financial Leasing Co., Ltd.
5.12 New Century Finance Leasing Co., Ltd.
5.13 Golden Bridge United Financial Leasing Co., Ltd.
6. DEVELOPMENT TRENDS OF CHINA FINANCIAL LEASING INDUSTRY
6.1 Industry Development Outlook
6.2 Enterprise Development Trends
SELECTED CHARTS
Major Characteristics of Financial Leasing
Clients’ Reasons for Choosing Financial Leasing
Main Forms of Financial Leasing Business
Served Industries of Equipment Financial Leasing
Equipment Involved in Equipment Financial Leasing
Relevant Policies about China Financial Leasing Industry, 2010-2011
Global Trading Amount of Financial Leasing, 1983-2009
Trading Amount and Growth Rate of Financial Leasing in Major Countries in the World, 2009
Business Volume of Financial Leasing in China, 2006-2012
Business Volume of Financial Leasing (by Type) in China, 2006-2011
Registered Capital and YoY Growth of Financial Leasing Companies in China, 2011
Comparison between China and Other Countries in Financial Leasing Market Penetration, 2009
Quantity of Financial Leasing Organizations in China, 2007-2011
Quantity of Financial Leasing Organizations in China (by Type), 2007-2011
Basic Requirements of CBRC on Establishment of Financial Leasing Companies in China
Basic Requirements of Ministry of Commerce of PRC on Establishment of Financial Leasing Companies in China
Business Indicators of Financial Leasing Companies in China, 2009-2011
Ranking of Financial Leasing Companies in China, H1 2011
Top 10 Domestic-Funded Leasing Companies in China, H1 2011
Top 10 Foreign-funded Leasing Companies in China, H1 2011
Distribution of Financial Leasing Companies (by City) in China, 2010
Total Amount and Proportion of Financial Leasing Business in Tianjin, 2008-2011
Total Amount and YoY Growth of Financial Leasing Business in China, 2011
Number of Civil Aircrafts Operated by China, 2010-2011
Key Indicators of China Air Transport Industry, 2008-2011
Proportion of Main Methods of China Aviation Leasing, 2010
Business Volume of China Civil Aircraft Leasing Market, 2010-2011
Comparisons between Self-owned and Leased Airplanes of China Southern Airlines, 2010
Comparison between China and Other Countries in Import Tax of Aircrafts and Aero Materials
Three Major Indicators of China Shipbuilding Industry, 2008-2011
Advantages Vs. Disadvantages of Ship Financing Methods in China
Financial Leasing Market Share of Major Enterprises in China Shipping Industry, 2010
Sales and YoY Growth of China Construction Machinery Industry, 2007-2012
Chinese Construction Machinery Financial Leasing Transaction and Market Penetration, 2006-2015
Major Construction Machinery Financial Leasing Companies in China
Financial Leasing Transaction Amount of Zoomlion Finance & Leasing, 2007-2011
Major Construction Machinery Sales Models of Sany Heavy Industry, 2011
Chinese Medical Device Market Scale, 2000-2010
Chinese Printing Equipment Indices, 2008-2010
Investment in Railway Construction in China, 2003-2011
Total Investment in Locomotive Procurement in China, 2003-2011
Number of Rail Locomotives, Passenger Cars and Freight Cars in China, 2010
Fixed Asset Investment in China Telecommunications Industry, 2006-2011
Fixed Asset Investment in China Electronic Information Industry, 2006-2011
Three Major Businesses of Global Financing Department of IBM
Market Scale and Growth of China Security Industry, 2008-2015
Comparison between China and Developed Countries in Ownership of Cameras Per Thousand Persons, 2010
Revenue and YoY Growth of China Radio and Television Industry and Telecommunications Industry, 2006-2011
China's Cable TV Subscribers and Growth, 2010-2011
New Leasing Business Volume of CDB Financial Leasing, 2007-2011
Total Assets and Net Income of CDB Financial Leasing, 2007-2010
Total Assets and Net Income of ICBC Leasing, 2008-2010
Net Income of BOC Aviation, 2009-2011
Aircraft Fleet of BOC Aviation, 2011
Total Assets and Net Income of CCB Leasing, 2008-2010
Total Assets and Net Income of Minsheng Financial Leasing, 2009-2011
Businesses of Minsheng Financial Leasing
Businesses of CMB Financial Leasing
Businesses of China Huarong Financial Leasing
Businesses of Jiangsu Financial Leasing
Business Indicators of Far East Horizon, 2007-2011
Total Proceeds of Far East Horizon by Sector, 2007-2011
Assets and Performance Growth of Leading Financial Leasing Companies, 2009-2010 Skip to top