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China International Rental Exhibition (CIRE)
30/07/2014 08:40:10  
Exhibition Background
Since the middle and late 20th century, international leasing industry has achieved a rapid growth. The leased properties range from office supplies to commercial aircrafts and various types of equipment. The United States and Europe are the world's major seats of rental market. Leasing has a variety of forms in the international arena, including financial leasing, property leasing, tax breaks leasing, etc.. According to statistics, during the 20 years from 1989 to 2008, the compound annual growth rate of global financial leasing market reached 7.16%. After 2008, although the financial leasing industry was affected by global financial crisis, it still maintained a strong momentum of growth, financial leasing has become one of the three pillars together with banking industry and security market. It has become a generally accepted means of financing, known as the "sunrise industry".
Since the early 1980s when financial leasing was introduced to China, leasing industry has rapidly developed in the past thirty years with a huge market potential. The Chinese market needs leasing industry, and its leverage role is beyond people’s expectation and imagination. Leasing industry plays a positive role in stimulating domestic demand, expanding effective demand of the market, regulating macro-economy and guiding reasonable and orderly flow of capital.
Leasing industry also attracts great attention from all levels of Chinese government departments, business associations and business enterprises. The Ministry of Commerce is in charge of leasing industry, with personal supervision from the ministry leaders; the Circulation Industry Development Division is responsible for the organization of thematic research for many times, studying and formulating industry development norms, developing the twelfth Five-Year development plan for leasing industry and exploring the feasibility of establishing national organizations. China Banking Regulatory Commission and other departments research and participate in various activities through a variety of ways. Domestic various business associations and business enterprises seize the historical opportunity for development and actively carry out various activities. We firmly believe that in the near future, China's leasing industry will usher in an explosive growth.
In today’s rapid development of domestic leasing industry, to conform to the trend of industrial development and seize the market commanding heights as soon as possible is particularly urgent. Organizing professional leasing industry exhibition is an effective entry point and starting point to promote Chinese leasing industry diversification, information technology and internationalization. Rental associations of Europe and the United States in this regard have now begun to organize professional leasing exhibitions. In order to grasp the opportunities of domestic market, the Trade Development and Cooperation Centre of CCPIT cooperates with domestic leasing companies to have organized four leasing exhibitions and two forums since the end of 2009 in Guangzhou, Jinan, Chongqing and Nanjing, all achieving good results in publicizing leasing concept and promoting the development of leasing industry.
On the basis of previous successful exhibitions, the leasing industry and enterprises give fully affirmation in the role and effectiveness of the exhibitions, and appeal to upgrade the specifications of the exhibition so as to expand participation scale and introduce international exhibitors to enhance the professionalism, internationality and influence of the exhibition. Binhai New Area, with modern exhibition spaces, is China’s leasing industry base and gathering area, accounting for nearly a quarter share of the country’s leasing industry. Holding China International Rental Exhibition in Binhai New Area can rely on local industrial advantages, combine its regional economic and industrial advantages, instill the exhibition with more vitality and provide more efficient services for domestic and foreign leasing companies and buyers.
Market Analysis
The sustained and rapid economic growth in China contains a huge demand in leasing industry. Rapid development of leasing industry and its penetration in various fields provides a wide range of resources for the organization of international rental industry exhibitions:
Take air transport as an example, China's civil aviation industry will grow by 8% -9%, by the year 2023, Civil Aviation Administration of China will need to add 2200-2300 aircrafts, worth about 180 billion USD. Currently, 60% -80% of domestic airlines’ aircrafts are introduced through foreign leasing companies. According to conservative estimate, the capacity of aircraft leasing market is at least 108 billion USD, with an average annual increase of leasing contract amount of 5.4 billion USD.
In the field of engineering equipment, the western development project, revitalizing the old northeast areas project, and project of diverting water from south to north, transferring electricity from west to east, transferring gases from west to east all require much investment in equipment. It is not possible and not necessary to rely wholly on bank loans or direct purchase. Modern leasing can not only meet the investment needs of the above areas of engineering, but also revitalize idle equipment and stocked assets in the eastern region, so as to promote the development of China's equipment manufacturing industry. China’s annual demand of construction machinery is around 200-300 billion RMB, while leasing service only accounts for 10%, a far cry from the international average of up to 80% with broad space for development.
In terms of daily life, the daily leasing needs arise from various consumer products, ranging from cars and real estate to office supplies, furniture and children's products. Leasing consumption demand has been rendered in various fields with a great potential, and from traditional industries to emerging industry.
From the view point of business needs, in the new economic environment, as the loan is relatively difficult, a large number of small and medium enterprises show great interest in financial leasing of production equipment, production and management venue, inventory goods and idle assets. Leasing is becoming an effective way to crack SMEs’ financing bottlenecks.
Due to huge market demand, in the "Eleventh Five-Year" period of 2006-2010, China’s financial leasing industry has shown a geometric progression growth, with a total business volume of about 8 billion RMB in 2006 growing to about 700 billion RMB in 2010, a total of 86-fold increase. By the end of 2010, the country’s balance of financial leasing contract increased by 89 percent over the previous year's 370 billion RMB, of which financial leasing 350 billion RMB, an increase of 106 percent over the previous year, domestic capital leasing 220 billion RMB, an increase of 54 percent over the previous year, foreign capital leasing 130 billion RMB, an increase of 86 percent over the previous year. Leasing companies, including domestic and foreign leasing companies, specializing in leasing industry has reached more than 250.
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