|
Leasing in China
Leasing business still takes a small portion among financing alternatives in China with so far approx. 4%(2006 est.) of all financing in China (0.4% in 2003), in comparison the same figure in Germany is about 20%. However it is gaining ground as an interesting financing alternative, partly because of its advantages already outlined under business activities, partly because the financial markets in China are not yet fully developed and in particular small to medium sized Chinese companies, often only set-up within the last 10-15 years have problems raising loans from Chinese banks, instead of relying purely on their own equity or private third party funding, leasing opens up a good alternative to these companies to finance their investment, while simultaneously saving their equity for other needs of the company.
And with China’s growing market presence presenting tremendous opportunities for Chinese and foreign companies alike, leasing is an increasingly popular way to finance such investments. - Like any growing leasing industry, it is however undergoing rapid changes in legal and accounting aspects, in addition a new leasing law to provide better structure to the industry is currently in preparation by the Chinese Government.
In such a complex and rapidly changing environment Deutsche Leasing China will guide you to find optimized solutions for you and your company.
|