I’ve heard that the financial industry in China is like the wild west- unregulated and full of dangerous characters. I don’t know if that is true, but you have to figure that considering how new they are to capitalism they aren’t going to ahve the structure, practices and restraints in place that a more established economy id going to have.
This is going to open the doors to people who are savvy enough to take advantage of it or people who have seen how things can be manipulated in other environments come and try their luck in place where they haven’t seen those games played yet. If you have the stomach for it and are OK living in a survival of the fittest kind of environment I’m sure it could be extremely lucrative.
On the other hand, I think I prefer the pace of life here where there are well established rules and consequences waiting for those who break them, although some would argue not enough and that they don’t always catch the right people. In any event, if you are going to get into the equipment leasing business over in China, it is apparently booming like crazy. Best of luck to you! 
RENO, NV, April 26, 2011 — Leasing’s explosive growth as an equipment finance option in China primarily has benefited multinational companies to date, a trend that Chinese regulatory authorities hope to counter by making leasing more accessible to small and mid-sized businesses, said Jonathan L. Fales, senior managing director of The Alta Group and chairman of the upcoming China Leasing Summit 2011.
“Most lease transactions in China involve large enterprises and big-ticket equipment such as ships and aircraft. These companies have no trouble finding lease financing, but it has been tough for the small and medium enterprises (SMEs),” said Fales, who is based in the U.S. and works closely with Alta’s Chinese offices to provide equipment leasing and finance consulting services to banks, leasing companies and equipment vendors.
“China does not have a credit market comparable to what we have in the west, with easy access to credit information. Normal due diligence often takes a week or longer, and banks and lessors obviously would rather spend that effort on a $30 million transaction than a $30,000 deal,” Fales explained.
As a result, China’s Central Bank Regulatory Commission (CBRC) has held conferences encouraging bank-owned lessors to lease to SMEs. The Ministry of Commerce (MOFCOM) has asked commerce bureaus and committees in Chinese provinces to carefully scrutinize local investments, Fales added.
In other industry developments, Fales noted:
- Captive and independent lessors continue to expand in China, though they struggle with operational challenges and a shortage of experienced personnel.
- Liquidity has been an issue for many companies, particularly independents. “The March, 2011 initial public offering of Far Eastern Leasing in Hong Kong was an encouraging development in this regard, but it remains to be seen whether this will serve as a catalyst for further IPOs in the industry,” Fales wrote in a letter to summit participants.
Article source: http://www.lessors.com/news11-Q2/allnews-110426e.html
