Abstract
As a highly popular industry rising quietly and quickly, financial leasing has been paid an increasing attention in the capital market, and more and more diversified business models have been developed. Different from traditional financial services, the financial leasing company aims to combine financing and acquiring the right of using real assets. This unique way of financing reflects both the growing trend of China’s financial leasing market and the general direction of China’s financial industry.
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Notes
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China Financial Leasing Industry Report, 2012, the blue book of Chinese lease issued by the Ministry of Commerce of the People’s Republic of China Department of Circulation Industry Development.
- 3.
China Financial Leasing Industry Report, 2013, issued by China Leasing Alliance.
- 4.
China Construction Bank (simplified CCB) is one of the four biggest banks in China. In 2015 CCB was the 2nd largest bank in the world by market capitalization. http://www.forbes.com/sites/liyanchen/2015/05/06/2015-global-2000-the-worlds-largest-banks/.
- 5.
Bank of Communications is one of the largest banks in China, http://www.forbes.com/sites/liyanchen/2015/05/06/2015-global-2000-the-worlds-largest-banks/.
- 6.
China Merchants Bank is the first share-holding commercial bank wholly owned by corporate legal entities in China. “A Guide to the Top 100 Companies in China”, Wenxian Zhuang and Ilana Alon, 2010.
- 7.
China Minsheng Bank is the first bank in China to be owned mostly by non-government enterprises. https://asia.boschsecurity.com/ap_product/05_news_and_extras_2/02_general_2/2014/q3_2014/solution_1/bosch-security-systems-china-minsheng-bank-integrated.
- 8.
Caterpillar Inc. is the manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and a wide offering of related services. http://www.caterpillar.com/.
- 9.
Zoomline is mainly engaged in developing and manufacturing major high-tech equipment in the areas of agricultural, building, energy, environmental, and transport engineering, and it is a continuously innovating global enterprise. http://en.zoomlion.com/.
- 10.
CIT provides lending, leasing and other financial and advisory services to the small business and middle market sectors, http://www.tisunion.com/portal/company-i-2714.dhtml.
- 11.
International Far Eastern Leasing Co. Ltd. provides financial leasing solutions to businesses. It also offers financial management, business operation, asset management, and management consulting services. http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=232672369.
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Ibid 12.
- 14.
CMC Magnetics Corporation is a Taiwanese company that manufactures optical discs. Established in 1978, its factories are located in Taiwan, mainland China (Memorex, HP, Philips, TDK, Maxell) and Hong Kong (Memorex, Philips). http://www.tjsemi.com/.
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SunPower is the largest manufacturer of solar cell modules in the United States. Founded in 1985 and headquartered in San Jose, California, it got listed on NASDAQ in 2005. It now has more than 5000 employees, and its sales amount exceeded 2.2 billion USD in 2010, ranking the third in the global photovoltaic industry.
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Ibid 3.
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China (Shanghai) Pilot Free Trade Zone is the first free trade zone in China, featuring specific supervisory policies and favorable tax treatment.
- 21.
Specific preferential tax treatment includes: (1) subsidiaries of financial leasing companies that are registered within the free trade zone will entitle to the export rebates; (2) upon approval, domestic financial leasing companies or their subsidiaries that are registered within the free trade zone and purchase airplanes with carrying capacity over 25 tons and usage limited to airlines overseas can enjoy a 5 % added-value tax deduction, which is absolutely a privilege compared with the standard 17 % rate of added-value tax.
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Ibid 3.
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There are currently two common measurements for financial leasing penetration internationally: (1) The ratio for the lease (over 1 year) transaction amount of a country or region accounts over its total amount of investment in equipment (which is used in this book); (2) The ratio for the lease transaction amount of a country or region accounts over its GDP.
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Full report is accessible at: http://pg.jrj.com.cn/acc/Res/CN_RES/INDUS/2013/10/14/2631c37c-4ee6-4d5e-bef0-be25c1dcbbde.pdf.
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Wang, J.G., Yang, J. (2016). An Alternative Link Connecting Industry with Finance—Financial Leasing. In: Financing without Bank Loans . Springer, Singapore. https://doi.org/10.1007/978-981-10-0901-3_8
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DOI: https://doi.org/10.1007/978-981-10-0901-3_8
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