Financial leasing is not a new business in China, says Ronald Kung Yiu-fai, chief executive of Golden 21 Investment Holdings.

Financial leasing was first introduced in 1996, with the maiden deal conducted by six of the nation's largest lenders.

However, Beijing stopped all financial leasing transactions as the sector lacked proper regulations.

In March this year new regulations were introduced, giving financial leasing a fresh opportunity to take root in the world's fourth largest economy.

"The reason for the new arrangement is that China has excessive capital and the government is trying to launch different investment tools to cool down the stock market," Kung says.

"Second, policymakers want to regain ownership of transportation in domestic enterprises. As most transportation companies finance through foreign financial leasing, most aircraft and automobiles are owned by foreign investors, mostly from the United States and Japan.

"Over 55 percent of capital expense of enterprises in the United States is funded through financial leasing, while in China the figure is only about 1.2 percent."

Because of the booming economy and prospective growth of transportation in the mainland, Kung says he is positive about the market potential.

"Everyone in the financial field wants to explore the China market. Financial leasing is an ideal choice as it is still new and there are fewer competitors in the mainland," he says.