Uniqueness, the Key to Success in the Car Leasing Market
2018-10-10 14:10 Wednesday
In order to equip leasing industry professionals with high-level knowledge on the Chinese market, Duxes, in association with the Global Leasing Union and Unleasing R&D Center, will hold the China International Equipment Leasing Forum 2018 in Beijing on October 25 -26.
The event will shed light on VAT reforms, the IFRS standards, supportive government policies, innovative business models, and other important topics, providing an opportunity for leasing enterprises to identify potential partners and grow their business in China.
Zhang Lijun from Hengxin Finance Leasing Limited Corporation will speak at the forum, and detailed his thoughts about leasing in China, in an exclusive interview with Duxes:
What is green leasing, and what is the nature of Hengxin's green leasing operations?
Green leasing refers to financing services and economic activities that support pollution-free, energy-saving, green and low-carbon services. Green leasing also encompasses the sharing economy, cash turnover acceleration and increased use efficiency.
Green leasing is one of Hengxin's major priorities, and has developed into an important sector within the larger leasing industry. Hengxin has collaborated with Didi, Baic Group and NIO to develop new energy vehicles, cultural tourism, charging piles and charging stations, in the hopes of realizing the enormous potential for green leasing in the market. Furthermore, Hengxin also launched a series of energy-saving products, including vehicle finance product "Xinchetong" and new energy product "Xindiantong", which have won great acclaim across the industry.
What government policies or market incentives led you to engage in green leasing?
Energy saving and emission reduction policies have been implemented at the national level, and every province in China has also implemented subsidy policies for the green industry. However, competition within the leasing industry is lacking due to interchangeable services and inflexibility. The leasing industry is entering a period of differentiation, in which enterprises that possess niche services and products will have a huge advantage. Hengxin hopes to distinguish itself through green leasing.
What inspired you to found the China Green Leasing Development Association in 2017? What are some of the organization's achievements?
I decided to found the Association due to the state of China's leasing industry, which lacks comprehensive policies and legal protections for leasing assets, post-leasing management, asset withdrawal, and other important issues. Furthermore, the leasing value chain has not yet formed a closed loop between the liability to asset sides. It's my belief that the leasing industry in China still has a lot of room to grow and mature.
There's a universal concern within the leasing industry about how to a resolve these issues. In order to work together on the appropriate solutions, myself and other leasing professionals founded the China Green Leasing Development Association. Association members exchange information about the latest developments, relying on the cumulative knowledge of the market that the organization possesses. To date, the net assets of the top 50 members are in excess of three trillion RMB, and there were 30 billion RMB in agreements between our members in 2017, spanning fund provisions, bonds, capital management, and credit ranking.
Most importantly, the green leasing classification criteria, business acceptance criteria and ranking criteria drafted by the Association have been accepted and approved by the People's Bank of China, which will help promote standardization in the nascent green leasing industry.
What are your thoughts on the future of the car sharing market?
The traditional vehicle market is being restructured, and I am optimistic about the new energy vehicle market. Prominent carmakers such as BAIC Group have even decided to phase out traditional diesel vehicles. Consumers will begin to prioritize vehicle usership rather than ownership in the near future, laying a solid foundation for the car leasing market. Hengxin is currently collaborating with Didi and NIO on car leasing, charging station, charging piles and battery. We believe that the partnership will improve the quality of car leasing service for our customers and spur progress in the market.
What is unique about Hengxin? What are its development plans in the near future?
Due to its collaboration with XCMG Group and GCL Power, Hengxin now has unmatched advantages within the vehicle and new energy industries. We are working on establishing our brand through analyzing market positioning, strategic development, and profitability.
What topics do you hope to hear discussed at the forum?
I anticipate that there will be in-depth analysis of cash liquidity, the status of the leasing market in China, the transformation of leasing enterprises, and financing channels.