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Business / Industries

Financial leasing firms aim for bigger role in international market

By Jiang Xueqing (China Daily) Updated: 2016-07-22 08:10

China's financial leasing companies are enhancing their competitiveness in the global markets to give stronger support to the overseas expansion of Chinese companies and the exports of high-end equipment.

"International development has become an essential feature and core competence of our company," said Zhao Guicai, president of ICBC Financial Leasing Co Ltd, in Beijing on Friday.

By the end of 2015, total assets of the company reached nearly 300 billion yuan ($45 billion), with businesses in 40 countries and regions. Among the total, 40 percent was international business and 50 percent was denominated in US dollars.

ICBC Financial Leasing had signed contracts worth more than 70 billion yuan, which are associated with Chinese companies' efforts to go global, as of Dec 31. The value of leasing contracts related to countries along the Belt and Road Initiative accounted for 33 percent of the total.

Earlier this year, ICBC Financial Leasing signed contracts with Chinese shipbuilders to build a fleet of 14 very large ore carriers worth nearly $1.4 billion, and confirmed that it has signed a 27-year iron ore transport deal with Brazilian mining conglomerate Vale SA.

Starting from the first half of 2018, ICBC Financial Leasing will transport about 16 million metric tons of iron ore annually for Vale from Brazil to China.

"By signing these contracts, we are effectively pushing forward the domestic high-end shipbuilding industry to go global," Zhao said.

Ever since ICBC Financial Leasing was established in Tianjin in 2007, Tianjin has developed into an innovation base for China's financial leasing industry.

So far, eight financial leasing companies have opened for business and one company was approved for establishment in the city, with their assets totaling 520 billion yuan at a compound annual growth rate of 37 percent.

As of the end of June, airplane and ship-related assets took up more than 20 percent of the total leasing assets of financial leasing companies in Tianjin. The number of airplanes under management of financial leasing companies surpassed 700, serving various airlines in 40 countries and regions, with their total leasing assets exceeding 100 billion yuan.

Wang Wengang, deputy director of the Tianjin Office of the China Banking Regulatory Commission, said: "In the next stage, we'll keep guiding financial leasing companies to further strengthen their support to the high-end equipment industry and improve business models that serve China's 'Going Global' strategy as well as the Belt and Road Initiative."

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