China Financial Leasing Group (SEHK: 2312), formerly Golden 21 Investment Holdings officially renamed and became effective as from 29th November 2007. China Financial Leasing Group announced to change its name in order to accurately reflect its new business focus in financial leasing market in China. Since the issue of the amended “Measures for Administration of Financial Leasing Companies” (金融租賃管理辦法) on 23rd January 2007, the China leasing industry entered into a rejuvenating stage after the Chinese government started promoting banks investing in the industry again. In line with the strategic move of the Chinese government, the Group decided to switch its investment focus from stock markets to rapid growing leasing market in China.
China Financial Leasing Group is an investment company incorporated in the Cayman Islands on 14th May 2002 whose shares are listed on the Stock Exchange of Hong Kong on 28th October 2002.
Undoubtedly, the relaxation of rules and regulations would greatly facilitate a rapid growth of financial leasing market as well as the leasing companies in China. The Group decided to start with rising industries such as transportation industry (e.g. investing in transportation tools such as automobiles, aircrafts and tanker ships and etc.) and other soaring industries which all having sizeable demands in the coming years. In fact, the Chinese government is working out more beneficial policies to develop the leasing industry and it is expected that the coming changes in leasing regulatory and tax policies would further boost the development of the industry. In the first financial deal at September 2007, the Group bought a two-year convertible bond issue worth about HK$10 million from a general leasing company in Mainland China, to finance the real of 1,800 Audi cars, to be used ahead of and during the Beijing Olympics in 2008. The Group signed another deal with an aircraft engine leasing company and acted as residual investor at November 2007. In the agreement, the Group provided a loan of up to HK$8 million with the minimum interest and the right of conversion in return. The Group is taking stable income steams from interest, besides; the Group may also earn extra profit from the companies’ upside, if the Group converts the bonds for a stake.
The Board will continually seek similar investment opportunity in the rising financial leasing market and meanwhile it will be actively looking for other strategic partners as well.
