At the press conference, Minsheng Financial Leasing Co., Ltd. and Sinotrans & CSC Tianjin Offshore Engineering Co., Ltd. announced to carry out cooperation in ship leasing business and jointly expand the market for development and construction of offshore wind power plants.
In recent years, China's financial leasing industry has made great progress, with significant growth in the market scale and enterprise competitiveness. It plays an important role in promoting industrial innovation and upgrading, broadening financing channels for small, medium-sized and micro enterprises, driving development of emerging industries and promoting economic structure adjustment. It adheres to combination of market leadership and government support, strives to improve development environment and fully stimulates vitality of market subjects. It sticks to combination of development and standardization, and guides enterprises to develop in accordance with laws in an orderly manner. It adopts integration of financing capital and articles, raise specialization and serves development of real economy. It vigorously expands overseas markets and meanwhile serves domestic market based on integration of both.
The so-called ship financial leasing means that a financial leasing company purchases the assets upon request of the ship owner, leases the assets back to the ship owner, and collects the rent from the ship owner based on amortization of all or most of acquisition cost of the assets.
The year of 2011 saw the difficulties in financial leasing companies affiliated to banks before the trial period expired. In 2011, the regulators required for trial operation of the new regulatory rules Risk Supervision Guidelines and Classified Supervision Instructions to strengthen risk control over financial leasing companies and further align regulatory standards of financial leasing companies with banks. The specified time limit was one year.
The tighten-up monetary policy in Chinese mainland led to a rise in interest rates in the money market, resulting in a significant increase in the cost of financial bonds issued by financial leasing companies. In Hong Kong, due to the shrinkage of expectation to RMB appreciation, the supply pressure of the dim-sum bond market gradually appears, and the issuing interest rate also shows an upward trend.
A report by Boeing predicts that in the next two decades, the aviation industry will become a global high-speed growth industry, which will usher in the prime time of development for aviation leasing industry. China will become the world largest aviation leasing market.
China's business jet market was wildly expected by manufacturers such as Gulfstream, Dassault falcon, Bombardier and Hawker Beechcraft to an "production of 1,000 planes in 2015". At the end of 2010, China's State Council approved the Guiding Opinions on Reform of Low Altitude Airspace Management, which plans to gradually reduce operational requirements for low altitude flights below 1,000 meters. Although it had no direct impact on high-altitude, medium and long-distance private business aircrafts, such a relaxed attitude meant the arrival of tipping point of general aviation market in the eyes of manufacturers.
In 2011, the international shipping market went to a slump and the international shipping financial market showed depression again. China's banking financial institutions increased innovation of ship financing products and shipping financial services. The role of financial leasing ship was financing increasingly expanded. Export credit became an important pillar of export ship financing, which brought shipping financing upward against the trend. Shipping insurance continued rapid development. Shipping freight index derivatives made a breakthrough. Market systems were gradually improved.