Flood of Chinese capital seen shaking up air finance
A flood of low-cost Chinese funding is shaking up the global aircraft leasing market, with Chinese capital now accounting for 28% of the US$261b deployed by leasing firms worldwide, a study suggested Monday. That is up from 5% 9 years ago. The influx of more than $70b to the leasing industry from Chinese banks and other investors over the past decade is helping airlines expand their fleets. But it is also curbing returns to be made by traditional players in a sector fast emerging as a significant new asset class. "In the last cycle (2003-2008), lease rates went up significantly whereas in this cycle they haven't. That's partly because there are more people looking for the same deals," said Rob Morris, global head of consultancy at Flightglobal Ascend. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-10-31/general/flood-of-chinese-capital-seen-shaking-up-air-finance
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Flood of Chinese capital seen shaking up air finance
A flood of low-cost Chinese funding is shaking up the global aircraft leasing market, with Chinese capital now accounting for 28% of the US$261b deployed by leasing firms worldwide, a study suggested Monday. That is up from 5% 9 years ago. The influx of more than $70b to the leasing industry from Chinese banks and other investors over the past decade is helping airlines expand their fleets. But it is also curbing returns to be made by traditional players in a sector fast emerging as a significant new asset class. "In the last cycle (2003-2008), lease rates went up significantly whereas in this cycle they haven't. That's partly because there are more people looking for the same deals," said Rob Morris, global head of consultancy at Flightglobal Ascend. <br/>
