From 2006 to 2010，China financial leasing industry witnessed exponential growth, and the total leasing fund increased by 86-folds from RMB 8 billion in 2006 to RMB 700 billion in 2010.
In 2010，the investment in financial leasing in China exceeded RMB 20 billion, the operating income registered RMB 15 billion, total profit RMB 4.7 billion and net income RMB 3.6 billion.
Total Leasing Fund of China Financial Leasing Industry, 2006-2010  Source: China Leasing Blue Book; ResearchInChina
In 2007, China financial leasing industry presented explosive growth. In this year, China Banking Regulatory Commission (CBRC) promulgated new Administration Measures for Financial Leasing Companies, which allows qualified commercial banks to set up financial leasing companies. Since then, financial leasing companies with banking background have emerged in China.
With strong financial strength and customer channel advantages, bank-based financial leasing companies gained increasing transactions in only three years, and their growth rate was higher than the average level of the industry. In 2010, 17 financial leasing companies supervised by CBRC achieved 50% of the new business valued RMB 350 billion.
Total Leasing Fund of China Financial Leasing Industry by Type, 2006-2010  Source: China Leasing Blue Book; ResearchInChina
China's financial leasing market is promising. In 2010, the penetration rate of the market (the proportion of equipment investment via leasing in the total equipment investment) was 3.1%; while the penetration rate of the global financial leasing market has been nearly 17%, and that of the developed countries is between 10 % -30%.
CDB Financial Leasing Co. Ltd. was by set up China Development Bank with the investment of RMB 7.0 billion in May 2008. China Development Bank (CDB) holds 95% stake, and other shareholders consist of Hainan Airlines Group, Xi'an Aircraft Industry (Group) Company, and so forth. Headquartered in Shenzhen, CDB Financial Leasing Co. Ltd is China's largest financial leasing company, with total assets reaching RMB 58.8 billion at the end of 2010.
ICBC Financial Leasing Co. Ltd. was established with a registered capital of RMB 5 billion by ICBC Co., Ltd. At the end of 2010, its total assets reached RMB 55.9 billion, the net assets RMB 5.97 billion, and the net profit RMB 580 million. It has 34 aircrafts made by Boeing, Airbus, ERJ, etc.; 56 bulk carriers, roll-on/roll-off ships, etc.; nearly 500 sets of engineering machinery, port facilities and rail locomotives.
This report in detail analyzes the development, financial leasing and competition patterns of key sectors (aviation, shipping, rail transport, engineering machinery, medical device, printing equipment, telecommunications and IT) serviced by China financial leasing industry, and predicts the development trends.
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