Global and China Financial Leasing Industry Report, 2020-2026
Financial leasing as financial service is a direct way to stimulate real economy and help companies tap idle assets and reduce liabilities. In recent years, the boom of the industry was accompanied by the growing number of entrants. By the end of 2019, financial leasing companies had numbered 12,130 in China, an increase of 353 or 2.91% on a like-on-like basis and sustaining CAGR of 51.6% compared with 80 in 2006; financial leasing contract balance had inched up RMB4 billion or 0.06% to roughly RMB6,654 billion as compared with RMB6,650 billion in late 2018. The ramp-down from early high growth showed that the industry has leveled off. The upcoming implementation of unified oversight on financial leasing industry is bound to hit leasing industry, especially commercial lease which was free from unified regulation before, as China Banking and Insurance Regulatory Commission asked for public comment on the Interim Measures for Regulation on Financial Leasing Companies (Exposure Draft) on January 8, 2020. On one estimate, the number of financial leasing companies in China will plummet but the ever standardized market will favor steady growth in related business. It is predicted that China’s financial leasing transactions will amount to RMB13.16 trillion or so in 2026.
By the regulator, financial leasing institutions in China fall in to three types: financial lease, domestic-funded, and foreign-funded, which differ greatly in time of debut and development, approval authority, nature of company, level of regulation, and business scope.
Financial lease: in 2019 China Banking Regulatory Commission (CBRC) approved just one new company—CRRC Financial Leasing Co., Ltd.. By the end of December, there had been 70 companies approved in China, 1 or 1.43% more than the number in the previous year.
Domestic-funded: in 2019, free trade zones (excluding Tianjin) almost suspended approval of domestic companies running financial leasing pilot business due to changes in regulatory system and adjustment of authorities approving domestic pilots. By the end of December, China had boasted a total of 403 domestic-funded financial leasing companies, an addition of 6 or 1.51% versus 397 in 2018.
Foreign-funded: in 2019, the number of foreign-funded financial leasing companies increased just in Tianjin, Guangdong, Shanghai, Liaoning and Shaanxi. By the end of December, there had been 11,657 companies of such type in China, increasing by 346 or 2.97% as compared with 11,311 at the end of 2018.
As of December 2019, there had been 108 companies on the list of top fifty financial leasing companies by registered capital in China, among which Tianjin Bohai Leasing Co., Ltd. topped the list with RMB22.101 billion; ICBC Financial Leasing Co., Ltd. and Ping An International Financial Leasing Co., Ltd. jumped to the second and third places, thanks to capital increase to RMB18 billion and RMB13.241 billion, respectively.
Global and China Financial Leasing Industry Report, 2020-2026 highlights the following:
Development of financial leasing worldwide and in major countries;
China financial leasing industry (policy climate, economic environment);
China financial leasing industry (development history, market size, competitive pattern, financing channels, profit models and development trends);
Development of financial leasing in main sectors in China (aviation, shipping, construction machinery, medical equipment, printing equipment, railway transport equipment, vehicle, agricultural machinery, electricity, etc.);
Development of financial leasing in main areas of China (Tianjin, Beijing, Guangdong, Shanghai, etc.);
Financial leasing companies in China (including 10 financial lease, 8 domestic-funded and 10 foreign-funded companies) (operation, financial leasing business, financing channels, development strategy, etc.).
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