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Burgeoning Finance Leasing Market in China

2018-10-17 13:23 Wednesday


Benefiting from rapid economic development and capital shortages, China's finance leasing industry has taken off over the past decade. As of the end of 2017, there were at least 66 leasing enterprises in China holding more than two trillion RMB in property.

finance leasing

Leasing companies refer to the financial enterprises which make profits from leasing equipment or tools. Financial leasing companies refer to the non-bank financial institutions which are approved by China Banking Regulatory Commission, and make profits from the finance leasing business.

The Ministry of Commerce estimated that the number of registered finance leasing enterprises in China has reached 6158 (5954 of which are foreign-funded, and the rest are state-owned), a tenfold increase from 2007 and a hundredfold increase in total assets. Included among them are eight hundred-billion-plus RMB finance leasing enterprises: ICBC Leasing, Bank of Communications Financial Leasing Co, Ltd, Minsheng Financial Leasing, China Developing Bank Leasing, CMB Financial Leasing, CCB Financial Leasing, Industrial Bank Financial Leasing and China Huarong Financial Leasing.

Due to persistent growth, China is now the world's second-largest finance leasing market, second only to that of the U.S.

Projections suggest that assets controlled by China's finance leasing industry will top 2.5 trillion RMB in 2018 and exceed 3.7 trillion RMB in 2022, a 10.34% CAGR from 2018 to 2022.

The President of the People's Bank of China noted that China will continue to open up its financial sector in the near future, as evidenced by five recent policy developments, a trend that is expected to further multinational collaboration in finance leasing and auto finance.

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