Serving 'Sannong' and the Real Economy
Yicai Global
DATE:  Jul 10 2017
/ SOURCE:  Yicai
Serving 'Sannong' and the Real Economy Serving 'Sannong' and the Real Economy

(Yicai Global) July 10 -- Established in June 2014, Harbin Bank Financial Leasing Co., Ltd. (HBFL) is the first financial leasing company in northeast China, with Harbin Bank Co., Ltd. being its controlling shareholder. Capitalizing on Harbin Bank's lead in 'sannong' – meaning agriculture, rural areas and farmers, and in serving small and micro companies, HBFL has set 'prioritizing agriculture-related business, focusing on agricultural machinery, being based in Heilongjiang and serving the entire nation' as its strategic orientations.

By fully leveraging the close link between financial leasing and the real economy, HBFL has achieved stable, low-risk, high-quality and long-term growth, leading its peers in terms of major business indicators.

Hold to Differentiation, With Agriculture-Related Business Accounting for Over 25% of Its Total Businesses

Since its establishment three years ago, HBFL has focused on developing differentiated, characteristic and professional businesses to serve 'sannong', getting involved in the entire industry chain of modern agriculture and vigorously growing its agricultural machinery leasing business.

HBFL's agriculture-related business has made up more than 25% of its total for three consecutive years. It has served over one thousand 'sannong' users including farms and land reclamation groups, farms and land reclamation administrations, state farms, grain storage and processing companies, agricultural machinery makers and agricultural machinery cooperatives with an investment of over CNY10 million each, building a brand in the field of agriculture and agricultural machinery leasing.

HBFL has also launched business models such as 'batch orders + sale and direct leasing', 'lease-back and activation + targeted import' and 'distributors + cooperatives' to engage in biological asset leasing and land management right pledge financing businesses. It has helped speed up the modernization of agricultural machinery and improve the quality of supply-side services.

On May 30, 2016, HBFL received the approval to issue financial bonds worth CNY2 billion. It issued the first batch of financial bonds worth CNY1 billion in July last year to raise money for its agricultural leasing business and became the country's first financial leasing company to issue agriculture-related financial bonds. The successful issuance of financial bonds has helped the company substantially lower its financing costs and improve its debt structure so that HBFL can further develop agriculture-related leasing business and cede profits to 'sannong'.

Exploit Comparative Advantages of Leasing

HBFL has also fully exploited the comparative advantages of leasing as a financial product different from other credit resources, while developing agriculture-related leasing business.

By leveraging the close link between financial leasing and the real economy and the physical leased objects, HBFL has served clients in the fields of transport & logistics and clean energy as well as projects aimed at improving people's quality of life. With businesses across the country, HBFL has directly and effectively promoted the development of the non-agricultural real economy. Meanwhile, as a member of the China-Russia Financial Alliance, the company has actively responded to the 'One Belt, One Road' national strategy and has worked closely with its Russian peers.

Per public information, HBFL has been included in the Yicai Financial Value List for three consecutive years. Authoritative media outlets including Xinhua News Agency, the People's Daily and Financial News have widely reported about the company, which has gained attention and affirmation from regulatory agencies and authorities including the Sate Council, the Office of the Central Rural Work Leading Group and China Banking Regulatory Commission.

In August 2016, HBFL attended the national press conference of the China Banking Regulatory Commission alongside the Heilongjiang Banking Regulatory Bureau to promote and introduce its experience of engaging in agriculture and agricultural machinery leasing businesses. As its business expands, HBFL has established solid partnerships with Heilongjiang Beidahuang Group, Beidahuang General Aviation Co., Ltd., Harbin Electric Corporation, YTO Group Corporation, the US John Deere Company and Russian Helicopters JSC, directors at HBFL said at the meeting.

HBFL said it will continue to seek new development opportunities under the new economic normal, exploit its unique advantages of serving the real economy, create value for its clients, actively perform its social responsibilities and stick to its original goal to contribute more to the development of 'sannong' and the prosperity of the real economy. 

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Keywords:   Harbin Bank Financial Leasing,Sannong