This report does not constitute a rating action. Like many sectors in China, leasing companies are in transition. Growth is driven by new economy areas such as tech and green financing, while exposures remain weighted in traditional segments. Not every lessor will successfully make the transition. S&P Global Ratings anticipates more consolidation in the leasing industry. Already, thousands of Shangzu have exited or been cleared from the market since 2021, whereas Jinzu numbers have remained largely stable. The leasing sector is challenged by tighter regulations, as well as moderating credit demand from the traditional segments. Uncertainty regarding underlying assets related to shipping and airlines is also taking a toll, given fuel and geopolitics. We expect Jinzu will continue to outgrow
