WCG-Global-Leasing-Report-2017

WHITE CLARKE GROUP GLOBAL LEASING REPORT
Asia
New business volume in Asia increased by 14.4% in 2015
and takes a 22.2% share of the world market (around
US$223bn), up from last year when the market volume for
Asia was 20.6%.
Small and medium-sized enterprises showed a rise
for the first time in two years and large companies
declined for the third year in a row. An increase in
consumer tax may have been a contributor factor.
The Chinese central bank cut interest rates five times
during the year, making bank loans cheaper and leasing
less attractive. Nonetheless, China remains the biggest
player in the Asia market and increased its volume by 26%,
reporting US$136.45bn new business volume in 2015.
The Chinese leasing industry has positioned itself as
the second largest market in the world for asset finance
through leasing and hire purchase, despite experiencing
the lowest growth in GDP for the past 25 years. The
infrastructure and the manufacturing sectors have
traditionally dominated the leasing market, but in recent
years the car industry has gained market share.
The Japanese leasing market recovered from last year’s
decline in growth (--17% in 2014) and experienced an
increase of 9% in 2015. New business volume increased
from US$55bn to US$60.84bn, a growth favoured by
the Abe administration’s ‘Japan Revitalization Strategy’
introduced in 2013 where leasing became an instrument
to promote technology.
The third biggest leasing market in Asia is Korea and
it is ranked 13th in the world achieving an increase in
new business volume of 8% in 2015 to US$11.39bn.
Transportation equipment and industrial machinery
continue to be the main assets leased representing
more than 80% of new business.
Taiwan is the fourth largest Asian leasing market. Since
2010 Taiwan has been experiencing an economic
expansion and has left behind the global economic
crisis’ effects which caused declines in leasing
volumes in previous years. The Taiwanese leasing
market is growing and in 2015 new business volume
reached US$10.62bn (10% higher than 2014).
Recent changes in Taiwanese regulations introduced
flexible financing not otherwise available to small
enterprises, with the aim of easing capital shortages
for SMEs. Also in 2015, the leasing market expanded
into high-tech leasing business creating optimism in
the leasing industry for the future.
Industrial equipment (12%), factory equipment (29%),
information and communication equipment (3%) and
medical equipment (9%) exhibited growth in comparison
with last year, whereas construction equipment (-8.8%)
and transport equipment (-3.4%) suffered negative growth.
The last Asian country to make it to the Global
Leasing Report top 50 is India. It experienced growth
of only 2.65%, just enough to be included in this
year’s Report, thus eliminating a European country
from the top 50 list.
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