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China's Financial Leasing Industry: The Current Situation and Future Development


By Tian Hui, the Research Institute for Finance of DRC

In recent years, financial leasing as an emerging industry has witnessed a swift development and is playing a more and more important role in national economy. This fact is due to the following factors: the financial leasing industry is enjoying increasingly prominent advantages than bank loans; the financial leasing industry serves both for product promotion and investment and financing, which could meet the need of China's manufacturing industry for its transformation; the impact of booming diversified finance services in recent years. The current development of China's financial leasing industry bears distinctive Chinese characteristics and features of the times. For instance, in spite of its quick market expansion, the financial leasing industry still boasts great potential for future development; its institutional building is still at a preliminary stage which is compatible to the development features of China as an emerging economy; the high proportioning of infrastructure projects in its business is also in tune with China's model of development, which is driven by investment in fixed assets. Under the new normal of economic performance, judging from the drives for the industry, financial leasing industry has a promising future in China. It is suggested that this industry develop its business in the following three aspects: expanding its market areas, promoting non-financing functions and enhancing structural building.