China08 Jun 2015
This Asset Finance International country survey aims to provide a balanced assessment of the equipment and auto finance and leasing market in China. Key areas covered and principal findings include:
- China’s leasing market has grown at a near-exponential rate since 2007, although the introduction of tighter monetary controls in 2011 and a temporary change in VAT regulation in 2013 briefly slowed the rate of growth.
- This upward growth trend has not been adversely affected by the recent downturn in China’s overall economic growth, and there are no signs of a change in this situation.
- There are no definitive figures for market size and performance. However, sources put the number of leasing companies at over 2,000 with a total leasing portfolio at the end of 2014 of CNY3,200 billion (US$520 billion). This represents a portfolio increase of over 50% on the previous year.
- New business volume (NBV) in 2014 is estimated at around US$500 billion, an increase of nearly 50% on 2013. Nearly half of NBV is contributed by 30 financial leasing firms
- In the auto sector, China is the world’s largest car market and sales volume continues to rise, driven by a burgeoning, wealthy middle
For this country survey, a wide range of industry leaders in equipment and auto leasing in China provide their views of the market, its recent performance and future growth trends, and the opportunities and challenges it faces in the near and medium term. Contributors include:
- David Chen, Head of Sales & Marketing, Société Générale Equipment Finance Greater China
- Colin Fleischmann, Director, White Clarke Group
- Brendan Gleeson, Group Executive Vice President, White Clarke Group
- Alan Leesmith, International Director, IAA-Advisory
- Diwakar Singhal, Senior Vice President, Genpact
- Richard Taylor, Chief Executive Officer, Siemens Finance Services in China
- Markus Weinseiss, President, CIT Asia
- Haitian Yang, Chairman, China Leasing Alliance Institute of Tianjin Finance Lease