2012 China Financial Leasing Industry Development Analysis and Forecast Report The penetration rate of China financing leasing market (the ratio of equipment investment realized by leasing to the total equipment investment) is less 3%, while the global average rate has approached 17%, and the rate for developed countries is between 10% and 30%. In china, machinery industry had the highest financial leasing penetration rate, which was 8.3% with a total transaction value at CNY24 billion in 2008. The machinery companies such as Shaanxi Automobile Group Co., Ltd, Yuchai Group and Longgong (Shanghai) Machinery Co., Ltd had all engaged in financing leasing business.
From the perspective of application field, the development of financial leasing businesses has been quite mature in industries such as aviation, ship, construction machinery and medical equipment. Typical enterprises include BOC Aviation Pte Ltd., Minsheng Financial Leasing Co., Ltd., Zoomlion Finance & Leasing Co., Ltd. and Far
East Horizon Limited. By the end of 2008, the Ministry of Commerce has accumulative approved over 80 foreign-funded financial leasing companies and 37 domestic-funded financial leasing companies, with a total registered capital exceeded CNY30 billion. In 2008, the accumulative investment value of China leasing and commercial service industry amounted to CNY113.6 billion or an increase of 54.2% year on year. The industry is expected to maintain a growth rate about 20% in 2009.
Meanwhile, foreign-funded leasing companies have reinforced their strength continuously, especially after the transfer of the right to examine and approve foreign-funded leasing companies to lower authorities in 2010. As of the end of 2011, there are 200 foreign-funded leasing companies in China, an increase of 80 compared with 2010; the financial leasing business volume also increased by 69.2% year on year to RMB 220 billion. In 2012, with the implementation of “Foreign Investment Industry Guidance Catalog (2011 revision)”, the category of “Foreign-Invested Financial Leasing Company” will be adjusted from “Restricted” to “Allowed”, and the quantity and financing scale of foreign-funded leasing companies will further expand in the future.