The Research Of Shanghai Pilot FTZ Plolicies’ Impact On Tructering Chinese Aircraft Import Financial Lease

Chinese economy has been enjoying high-speed development for30consecutive years. Now, China is world’s second economy. As theeconomy develops, people change way of public transportationaccordingly. Flying is the most popular way of transportation amonghousehold and business people due to convenience and efficiency.According to Boeing Current Market Outlook published in2012, ChineseRPMs jumped to$403billion from$160billion, which increased15.4percent annually, from2005to2012.4350out of6540aircrafts Boeingdelivered in China were to meet the increasing market demands. Airlinesalways have difficult to finance their new aircrafts on their own.Fortunately, here comes the financial lease, which can help airlines out.Chinese aircraft lease market established in1997. After6years rapidgrowth, ICBC Financial Leasing has managed7.3billion portfolios as ofDec2013, ranking number one in Chinese aircraft market. Likewise, CDBFinancial leasing, who is the earliest player in aircraft lease sector inChina, has a fleet consists of163aircrafts. The fleet valued at$7billion.117ourt of163are operating lease. CDB Financial leasing has37clients from20countries. ICBC Financial Leasing, which locates in DongjiangFree Trade Port Zone, has created a new version of tax lease that is knownas China Import Tax Lease. However, aircraft lease industry heavily relieson tax policies, accounting, regulatory and legal system. Namely, thegovernment dominates. On September18,2013, National People’sCongress issued the Framework Plan for the China (Shanghai) Pilot FreeTrade Zone. The policies such as financial leasing subsidiary is allowed toestablish in Shanghai Pilot FTZ under permission, show that thegovernment sticks to deepen the financial reform. Under these policies, wewill definitely find a better financial leasing model. Meanwhile, they willaccelerate the stepping-out pace of local financial leasing companies.