According to an RnR Market Research report, the rapid development of China’s financial leasing industry in 2012 was remarkable. In 2012, the business turnover of China’s financial leasing was CNY 1.55 trillion ($250 billion), increasing by approximately CNY 620 billion, compared with CNY 930 billion ($150 billion) at the end of 2011, with a growth rate of 66.7%.

According to the report, as of the end of 2012, the number of domestic financial leasing companies was almost 560, increasing by almost 300 over 2011; the number of foreign-funded leasing companies was 460, increasing by 250 compared with 2011; the growth rate was more than 100%.

At the end of 2012, the registered capital of financial leasing companies was CNY 189 billion, up 36.2% YoY; industry capital adequacy ratio was 12.2%, including CNY 62.2 billion of financial leasing registered capital; registered capital increased by 17.8%. At the same period, the registered capital of foreign capital lease was CNY 90.4 billion, up 76.9% YoY.

In terms of the competitive landscape, at the end of 2012, the business turnover of lease contract of 20 financial leasing companies was CNY 660 billion, accounting for more than 40% of the total business turnover of financial leasing industry. The industry concentration ratio is high.

According to this report China’s financial leasing market penetration rate is only about 5%, while this number in the European and American market is about 20%.

In terms of the international horizontal comparison and the economic growth of China, as world’s second largest economy, China’s financial leasing industry has huge space for development. It is expected that the scale of the overall leasing industry in China will exceed CNY 10 trillion in 2020; the CAGR will be about 30%; leasing penetration rate will surpass 10%. The financial leasing industry in Beijing, Shanghai, Tianjin, Shenzhen, Hangzhou, Xiamen, like that in developed countries, has become an important complement to bank credit and securities financing. In these cities, a scientific and stable funding system will begin to form.