1. Pavitra Venkateswaran 870 Semester V, B.B.A; LL.B (Hons)

2. Annual Volume Europe N America Asia S. America Aus/NZ Africa 3. -20 -10 0 10 20 30 40 Europe N America Asia S. America Aus/NZ Africa Growth Sales 4. -10 -5 0 5 10 15 20 25 30 35 40 % of World Market Volume (2009) % of World Market Volume (2010) Change from 2009-2010 5. New business growth in China amounted to 50%, with leasing sales of US$63.7bn. The pace of Chinas growth can be seen from its ranking over the past three years eighth position in 2008, fourth in 2009 and now second, after the US. The main driver occurred in 2007, when the countrys commercial banks could become licensed to invest in subsidiary finance leasing enterprises as non-bank financial institutions. By the end of 2010, there were 198 leasing firms in China, up from 150 in 2009. Twenty-one were bank lessors, 44 captives and 182 were third- party independents. 6. 2008 GDP 2009 GDP 2010 GDP 7. Ranks 2nd, after USA I n terms of Annual Volume Annual Volume US$36.72 %Growth between 2009-2009 50 % of Market Penetration 3.8 8. 2001 6th largest trading nation Successfully completed negotiations on terms of membership with WTO Resulted in lowering of barriers Entry into WTO sparked rejuvenation of leasing sector Joint Venture leasing companies - existed since 1980s 2005 Market opened up by Ministry of Commerce to leasing operations wholly owned by Foreign Investors Finance companies were also allowed to engage in vehicle leasing 9. So in fact since 2010, a period when traditional bank loans were decreasing, which would seem to offer a fresh opportunity for non- bank lessors, the growth rate for the leasing sector has slowed compared with previous years. 10. Near-term challenges include: Lack of leasing law to support leasing activities; Limited credit information on individuals or SMEs; Different local practices in different areas of China create a standardization challenge. Medium-term challenges include: Too much competition from 400-plus leasing companies; The steady slowing down of Chinas economic growth.