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Zhou Wei, Chairman of Minsheng Financial Leasing: financial leasing industry needs subdivision but more innovation
Time：2016-12-20 Source：International Business Daily Pageviews： Print Font size：AAA
At present, the financial leasing industry in China presents several new features. Zhou Wei, Chairman of Minsheng Financial Leasing Co., Ltd., pointed out in the annual conference of China 2016 Financial Leasing.
First, the industry presents gradual differentiation with further development of refined market, and the whole industry appears the situation of a hundred flowers blossom. But the smaller leasing companies with weaker risk-control ability and no characteristics may face the fate that are regulated or even eliminated.
Second, the risk of leasing industry has risen somewhat, including the increasing credit risk due to the impact of macroeconomic environment, and the asset management risk arising from the insufficient self-asset management ability of the leasing companies.
Third, the internationalization process further accelerates. Especially in the fields of aircrafts, ships, engineering, machinery etc, the leasing companies in China are strengthening the momentum to participate in global competition. “For example, Minsheng Financial Leasing has distributed its two offshore oil platforms in India and Iran etc, with a good momentum of development at present." Zhou Wei said.
Fourth, the pace of capital operation and M&A is accelerated. Many financial leasing companies in China have successfully achieved IPO, this year there are also many leasing companies which are listed in NEEQ, stock exchanges and Hong Kong. "It can be said that Chinese leasing companies may be the most active main forces in the global leasing M&A market." Zhou Wei said.
Fifth, more attention is paid to asset exit and transaction. When the leasing companies with professional management abilities manage some assets at which they are better, they can also help solve the financing problem, which development is a very good phenomenon for the industry.
Under the new normal economy, how to maintain the endless momentum of development in the financial leasing industry? Zhou Wei put forward three proposals, the first it to deeply cultivate and finely operate the segment market; the second is to solidly control the risk; the third is to lead the development through innovation.
As to the deep cultivation and fine operation of the segment market, Zhou Wei said based on his analysis that there is broad space for the development of financial leasing market in China. “Under such large market volume and space, it is very unnecessary for the homogeneous competition and even price war." Zhou Wei said, “financial leasing is still making progress in China, and the development of segment market can help us get greater benefit space."
Second, solidly control the risk. The development of financial leasing industry in China is not long time, and many “old” companies pay tuition for experience. We hope the new entrants of the industry to learn experience a lot from the “experienced companies”, with less detours.
Third, innovation leads the development of the industry. "Of course, the financial leasing industry does not just innovate for the sake of innovation." Zhou Wei stressed that the development of financial leasing to the present stage has an urgent need for technological innovation. Internet of things (IOT) and Internet technology have brought great impact on the development of leasing industry. “The core of financial leasing is the operation and management of leased assets, IOT technology will bring new changes to the business mode of financial leasing industry."
On the other hand, the economic structure in China has changed, and Chinese financial leasing industry will face three opportunities. Firstly, the value reconstruction of traditional industry provides new business space; secondly, the new industry expands the financial leasing field; thirdly, the construction of "One Belt, One Road” provides space for Chinese leasing industry to expand the overseas markets. “At present, many Chinese enterprises have carries out business cooperation with the financial institutions of the countries along the "One Belt, One Road” such as Kampuchea and Vietnam etc, and the development prospect of financial leasing industry is very expectable." Zhou Wei said.