Photo taken on March 4, 2020 shows the skyscrapers of the Central Business District (CBD) in Beijing, capital of China. (Xinhua/Ju Huanzong)
BEIJING, Dec. 8 (Xinhua) -- China's financial leasing industry is ushering in fast development as new registrations in the sector increased by nearly three times from January to June this year, reported Economic Information Daily Monday.
Data from the unified registration and publicity system for movable property financing, a unified registration and publicity platform for movable property ownership of the Credit Reference Center with the People's Bank of China, showed that in the first half of 2020, the new financial leasing registrations registered 1,040,515, surging 297 percent year on year.
Besides, the new financial leasing registrations accounted for 70 percent of the total amount of new movable property financing registrations during this period which stood at 1,486,696, rising by 195 percent year on year, according to the data.
As an import way for financial leasing companies to obtain funds, debt financing plays an irreplaceable role in effectively expanding financing channels, lowering financing costs, and optimizing the structure of assets and liabilities, etc.
According to statistics, financial leasing companies had finished a financing of about 221 billion yuan in the first six months of 2020 by issuing ABS (Asset Backed Securities), ABN (Asset-Backed Notes), corporate bonds, ultra-short-term financing and other debt financing tools.
The growth and transformation of the tens of millions of small-, medium- and micro-sized enterprises in China all needs the support of leasing, and thus there is huge potential in China's leasing market, said Xiong Xiangen, chairman with Jiangsu Financial Leasing Co., Ltd. at the China financial leasing annual conference held recently in Beijing.
Currently, China's financial leasing companies have formed their own distinctive small-, medium- and micro-sized firm leasing models, and established professional capabilities of sustainable development, Xiong added.
In terms of long-term development, Yu Xiudong, president with CITIC Financial Leasing Co., Ltd., believed that financial leasing companies should pursue specialized and differentiated development, innovate business models and expand profitability to serve the real economy in an all-round way.
(Edited by Gu Shanshan with Xinhua Silk Road, gushanshan.1987@163.com)