Chinese financial leasing ready for transformation

Chinese financial leasing ready for transformation

Chinese financial leasing companies are looking to further expand their presence in the global ship financing market, having already filled much of the gap left by traditional ship financing banks in Europe.

“The ship financing landscape has changed significantly in the past few years. We, as a financial leasing company, served as a bridge between capital and owners. In the future, we plan to wider the bridge by leading more capital including non-ship capital into the shipping industry,” Zhu Jiafeng, managing director of shipping leasing depart of AVIC International Leasing said at the Capital Link International Shipping Forum in Shanghai on Friday.

Jack Xu, deputy head of shipping at CMB Financial Leasing, said he had seen China’s financial leasing sector enjoy booming growth in the past few years and he reckoned the sector is now about to transform itself.

“We are making efforts to transform into a platform to offer diversified financing solutions rather than simply being a lessor in order to better compete on the market,” Xu said.

Bill Guo, executive director at ICBC Financial Leasing, said leasing companies need to optimize and innovate their service offerings in order to stand firm in the market. According to Guo, ICBC Financial Leasing now sees forming joint ventures with owners as a new solution, which has become the company’s most preferred solution recently.

In October last year, ICBC Leasing and China Merchants together ordered six VLOCs plus three options at CSIC-affiliated Qingdao Beihai Shipbuilding under a COA with Brazilian miner Vale.

Guo said in an interview with this site late last year that the traditional banking role would face more competition and would no longer meet the growing complex demands in the ship financing market and ICBC Leasing was looking to get more involved in both shipowning and shipmanagement.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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