On September 2, Nansha Development District and China Southern Airlines Company Limited, Kunlun Financial Leasing Co., Ltd and Guangzhou Municipal Commission of Commerce jointly held the ceremony for the delivery of the airplanes leased by China Southern Airlines through bonded lease based on the pilot free trade zone in Nansha at Guangzhou Baiyun International Airport. Diao Ailin, deputy secretary general of the People’s Government of Guangzhou, Yang Yong, deputy director general of Guangzhou Municipal Commission of Commerce, and other officials in charge of related departments attended the ceremony.

 

The delivery marks a substantial progress in the cooperation between the Administrative Committee of Nansha Development District and China Southern Airlines in airplane leasing. On April 21, the two sides signed a cooperation framework agreement on airplane leasing. On July 22, Southern Airlines International Financial Leasing Co., Ltd invested by China Southern Airlines Group finished business registration (with initial registered capital of RMB1 billion).

 

It was learnt that two newly purchased Airbus A321 airplanes worth more than USD100 million were delivered this time. The airplanes were introduced by Guangzhou (Nansha) Hangyue Airplane Leasing Co., Ltd, which is a SPV established by Kunlun Financial Leasing Co., Ltd in the pilot free trade zone (bonded area) in Nansha, and leased to China Southern Airlines Company Limited. To ensure that the airplanes could be delivered on time, Nansha established the Kunlun Leasing Project Service Group to provide a whole set of free services for business registration, foreign exchange registration, tax registration and opening of account.

 

The introduction of the two airplanes will be helpful for expanding the size of airplane assets of Nansha and building a cluster of financial leasing in South China.

 

This year, Nansha has introduced 10 airplanes for leasing through the SPVs engaged in this field, with contract amount totaling about USD680 million, equal to about RMB4.5 billion. Seven of these airplanes have been delivered to Nansha.

 

On September 22, 2015, Bohai No.1 rent the first airplane introduced by a SPV in Nansha, marking a breakthrough of Guangzhou in airplane leasing. On January 28, 2016, SkyCo International Financial Leasing Co., LTD. finished China’s first cross-border transaction of asset package, which consisted of two airplanes. From later July 2016 to early August, two Boeing 787-9 Dreamliners worth USD150 million and one Airbus A320 airplane introduced through the SPV of Bohai Leasing in Nansha were delivered to Nansha. On September 2, 2016, the first Airbus A321 airplane introduced through Kunlun Financial Leasing Co., Ltd and leased to China Southern Airlines was delivered for use. It was the first airplane leasing project operated by a financing leasing company in Nansha. Under the support of the national provincial and municipal governments, the financial leasing industry of Nansha has had a fast development, setting a good start for Guangzhou to develop into the third highland of China for development of financial leasing. By the end of July 2016, a total of 154 financial leasing enterprises have settled down in Nansha, with total registered capital of RMB49 billion. Of these enterprises, there are a number of industrial leaders, including Yuexiu Leasing, Pearl River Financial Leasing and Southern Airlines International Financial Leasing. From date of the formal establishment of the free trade zone to the end of July 2016, the newly added contract amount of the financial leasing enterprises in Nansha exceeded more than RMB50 billion, totaling the contract amount of financial leasing businesses in Nansha to more than RMB80 billion.

 

Source: Translated from Invest Guangzhou, September 2, 2016