According to a market research report, in 2012, the business turnover of China’s financial leasing was CNY 1.55 trillion ($253 billion), increasing by approximately CNY 620 billion ($101 billion) compared with CNY 930 billion ($152 billion) at the end of 2011, the growth rate was 66.7%.

As of the end of 2012, the number of the 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%.

According to the report, at the end of 2012, the registered capital of financial leasing companies was CNY 189 billion ($31 billion), up 36.2% year-over-year. The industry’s capital adequacy ratio was 12.2%, including CNY 62.2 billion ($10.2 billion) of financial leasing registered capital; registered capital increased by 17.8%. At the same period, the registered capital of the foreign capital lease was CNY 90.4 billion ($14.8 billion), up 76.9% year-over-year.

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 ($108 billion), accounting for more than 40% of the total business turnover of financial leasing industry.

The report noted that China’s financial leasing market penetration rate is only about 5%, while this number in 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 ($1.63 trillion) in 2020; the CAGR will be about 30%; the leasing penetration rate will surpass 10%. 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.