On October 16, China Jianyin Investment Limited (JIC) declared that its subsidiary, JIC Leasing Co., Ltd. (JIC Leasing) had been approved to conduct strategic investments by the Beijing Municipal Commission of Commerce (BJCOC). Thus, it became a sino-foreign joint venture. The money was delivered by the Carlyle Group, China Merchants China Direct Investment Limited (CMCDI) and China Jianyin Investment Technology Co., Ltd. (JIC Technology). This marked the first step by JIC Leasing, one of the earliest professional independent financial leasing enterprises in this country, towards the capital market. JIC Leasing will now surely be able to provide even more diversified services for customers – both at home and abroad.

After the introduction of the strategic investment, the registered capital of JIC Leasing will rise to 2.668 billion Yuan. The foreign investor Carlyle Group and CMCDI both made a joint investment of 952 million Yuan, accounting for a 25 percent stake. Specifically, the Carlyle Group now holds an 18.54 percent stake, while CMCDI has 6.46 percent. The remaining 75 percent goes to JIC and its subsidiary JIC Technology.

JIC stated that its member company introduced the strategic investment and went public in order to comply with the development trends associated with SOE reform. Introducing strategic investors and utilizing the multi-layered capital market at home and abroad to promote SOE represents an important step towards encouraging SOE reform. Overall, this will help to beef up the vitality, control power and influence of government capital.

To adapt to the trends associated with SOE reform and to further release the operating energy and development strength of its subsidiaries, JIC has gradually shifted management modes. It has moved away from “controlling the assets” and towards “controlling the capital.” Meanwhile, the company has also been earnestly pushing forward with shareholding diversification reforms. It has been encouraging them to absorb strategic investments and go public at the proper time.

“The introduction of strategic investors is the first step for the company to have access to the capital market. We’ll work hard to integrate various resources and improve core competitiveness further in a bid to make the company bigger and stronger and constantly enhance its brand value,” Chen Youjun, President of JIC Leasing, said. He also added that the company would make greater efforts to accelerate shareholding reform. This will help to further perfect the governance system and market-oriented operational mechanisms. It will also help to improve business performance and innovation capabilities, and speed up the listing pace.

According to the Carlyle Group, China’s financial leasing market and overall assets are growing rapidly. Industrial expansion has effectively promoted the development of a more substantial economy. It has also played an important role in facilitating industry innovations and upgrades, driving the development of newly-emerging industries. This process has boosted economic restructuring and diversification within financing channels for small and medium-sized enterprises. Compared with the more developed economies, the market penetration rate demonstrated by financial leasing in China is fairly low. This also means there is still much room to maneuver in the future. As a leading independent financial leasing company in this country, JIC Leasing is striving to serve particular sectors, including IT, high-end equipment manufacturing, health, environmental protection and new energy. Along with the economic transformation and upgrading that is currently taking place in China, the huge potential of the leasing market within these fields will also start to surface.  

Being involved in China’s SOE reform and development is an important strategic policy of the Carlyle Group. Carlyle said that JIC Leasing has demonstrated rich experience and clear objectives. It highly values a full understanding and control of risk and provides the full potential associated with the SOE’s advantages on the basis of the market. It is a great honor for Carlyle to participate in the company’s reform and development. Carlyle expects to join hands with JIC Leasing to help the company to further expand business scope. It will also help to diversify financing channels, improve incentive mechanisms, and optimize internal operations and management.