Last September CIT Group appointed Adrian Pang as managing director of its Vendor Finance Asia operation.

At the time, Ron Arrington global president of Vendor Finance at CIT and Pang’s immediate boss, confirmed: “Asia is one of the fastest growing regions in the world and presents significant opportunities. It remains a strategic region for CIT Vendor Finance and our vendor partners.”

He also added: “Adrian’s experience in managing sales, marketing, operations and personnel at multi-national financial services and IT companies makes him uniquely qualified to lead our business in Asia.”

In the leasing industry it is not uncommon for senior management to sing their appointees’ praises above normal levels of hyperbole, but in Pang’s case it is difficult to quarrel with the term “uniquely qualified”.

Born and schooled in Hong Kong, he attended the country’s Baptist University and achieved a degree in Business Management. He also attained a Masters in Mass Communication from the University of South Australia.

Big-name employers

Beginning his career, he gained promotion to senior executive positions in several principal asset finance companies: Sun Microsystems Global Financial Services Asia Pacific, GE Capital Asia Pacific and AT&T Capital Asia Pacific.

Immediately prior to joining CIT he served as managing director for Asia Pacific for Goindustry DoveBid the international asset manager, valuer, re-marketer and auction house. Whilst there he managed global partner relationships and expanded the company’s operations into Japan and China.

It is difficult to envisage a better career experience for a senior lessor than being immersed in the valuation and disposal of assets. For Pang’s appointment meant he is responsible for developing and executing a growth strategy for CIT in the region and building on the success that CIT has achieved during its 13-year presence in Asia. He explained: “During my three years at Goindustry DoveBid I gained a much better knowledge of assets and how to finance them.”

Upon joining CIT Pang found that his principal task was “listening to our customers, and to our vendors, and ensuring that we have the right product for them at this time”. “I was fortunate in having a very professional management team,” he stressed.

Nor was Pang deterred by CIT’s recent corporate trials and tribulations during the recession. He was impressed by the new senior management team led by chief executive and chairman, John Thain. “I was very inspired by the new management and their plans for growth for the company,” he said.

Strong local knowledge

He added: “Prior to my joining, CIT had been in China since 1999 operating on a joint venture basis. Today we have wholly owned offices in China, South Korea, Singapore, Malaysia and Taiwan. There already existed a history of strong local knowledge and connections.”

The sectors in which CIT are focused are information technology (IT), office products, healthcare, printing and machine tools. Pang told Asset Finance International: “We aim to continue operating in these sectors and develop them even further. We are watching very closely the Chinese government’s increasing commitment, and investment, in green energy initiatives and the commercial possibilities that will develop from these. We always undertake a thorough market evaluation and survey before we decide to enter a new market sector.”

But isn’t making credit decisions in the new emerging-market atmosphere of China daunting, given the very recent establishment of credit reference information?

“If you had asked me that question some 13 years ago I would have agreed that it is very challenging,” he said. “But today it is much less demanding – and indeed becoming less and less. Remember, we have been established here for quite some time and have formed a firm database of good quality clients. As China becomes a more mature market than ever, more good quality information is becoming available. For example, background information such as financial statements and accounts are far more readily available nowadays.”

China’s continued growth - even during the recent financial crisis - meant that recent investment in leasing did not suffer the default crisis experienced by western lessors. Pang confirmed: “Our portfolio in China did not experience the dip during the recession to the extent that customers in the west did.”

Nurturing

Pang stressed the importance CIT attaches to nurturing and mentoring its employees. “We do care a lot about our staff and, for instance in China, have around 100 employees in our three offices located in Shanghai, Beijing and Guangzhou.” he explained. “Our Shanghai office is also home to our regional service centre, which is one of the largest of its kind in the country.”

He added: “All international staff employed are treated exactly on the same basis - as equals. In many ways CIT is seen as a training ground for staff, especially in Asia. We have a very open management style of operating and we have been established here so long that CIT-trained staff can be found working in a range of businesses throughout the area.”

He is optimistic for the future not least because Asia is currently the global region with the highest growth. He stressed to Asset Finance International: “CIT’s strong ties to its customers, our deep industry expertise, and talented employee base remain our key differentiators in the marketplace”.

Furthermore, the Chinese government’s current moves to limit investment in areas which stimulate inflation – especially property - are working to CIT’s benefit. Pang explained: “The government is looking to prioritize lending to industry sectors which encourage the sale of production equipment. We do not lend for property but rather our preferences are for the funding of equipment which fire economic growth.”

Still low penetration

“In 2009 leasing volume in China was estimated at approximately US$27.8bn with a 30% compound annual growth rate over the preceding five years. We believe there are significant growth opportunities in the leasing market across all segments in China for several reasons: leasing penetration still remains low; acceptance of leasing as a finance tool continues to grow; and customers are growing more sophisticated and have more options when choosing a leasing company.”

Currently the leasing market is driven by bank-affiliated leasing companies, such as CIT, and vendor-related leasing companies. “However,” he stressed, “we are seeing competition enter the markets from both multi-national and local companies. The customer base primarily includes large local enterprises, the public sector, or multi-national companies. And while there is a much greater need in the small and medium-sized enterprise segment, it remains underserved due to underwriting challenges.”

He added: “We’ve developed a number of new relationships this past year, including winning the largest surface-mounting technology deal ever in China, and we recently completed a vendor program with another major IT manufacturer for its telecom industry users.”

Pang lives in Hong Kong and finds himself travelling between CIT’s Asia branches for around 75% of his working time. He is a keen sailor and has co-ownership of an Etchells racing yacht. Etchells are sailed by a very loyal membership and Pang derives a great amount of enjoyment competing in races organised by his club, the Royal Hong Kong Yacht Club – the oldest in the region.

There are a few examples, during its long history, of the leasing industry having the good fortune and excellent timing to have “the right man in the right place at the right time”. In the case of Adrian Pang, CIT most certainly seems to have achieved it.