JIC Leasing recently provided RMB 100 million to Tianjin Chainway Leasing  under a re-leasing agreement. This marked another collaborative effort between the two leasing companies following another deal in 2015. Leveraging its expertise and financial strength, JIC Leasing is once again working with industry peers to create a win-win situation.

During the second half of 2015, demand for funding slowed down in the real economy. However, there was still robust demand for the deployment of financial capital. The scarcity of good assets (in terms of safety and yields) gave rise to a “capital famine”. In 2016, the market is experiencing a contagion from the “capital famine”. Challenges are being felt in the fast-growing financial leasing sector as well.

In this context, collaboration between leasing companies has provided an effective solution to help consolidate and allocate resources. On the one hand, it will help small financial leasing companies put their leasing assets back to work. This will allow them to meet their funding needs and enable stability during ongoing operations. On the other hand, it will provide a new option for the top players in financial leasing to expand both in size and competency while delivering risk-manageable, satisfactory yields. Meanwhile, this initiative will also help ease the hardships associated with the “capital famine”.