International Comparing Study On Financial Lease

From its emergence, financial lease has been playing an increasingly important role in capital market to help large equipment acquisitions. In many countries it is the most important way of equipment financing besides loan facilities offered by commercial banks, especially in those developed countries. Among the top 4 countries of economy volume, the US, Japan and Germany keep a far bigger number with volume of financial lease and lease penetration than China does. The proportion of financial lease in China's GDP is significantly lower than not only those modern industrialized countries, but also some developing countries. Financial lease contribution in China is not yet clear; this may affect China's transformation to a modern industrialized country. What are those differences among countries? What are the reasons for these differences? Futhermore, what are the institutional factors under those apparent reasons?The author sorts and summaries the references related to financial lease in the introduction section. As the beginning of this thesis, he introduces the main contents of this thesis. Then, he gives opinions on basic concepts to make a solid base for the following discuss.Phase theory and Path Dependence theory are discussed frequently. Based on the comparasion of facts of several countries, the author gives his own view on the theory in Chapter 3.Structured lease is introduced first time in Chinese treatise. It is shown in Chapter 4.Comparisions on Taxtation and Supervision are shown in Chapter 5 & 6, in which the author also gives him suggestion on China's policy.Chapter 7 is the data analysis to show the factors that affect penetration.In financial fields, financial lease is one of the top five financial forms, while others are credit facilities from commercial banks, direct financing, trust, and insurance. As a result of on-going financial reforms, China's commercial banks, securities and insurance industry have made a considerable progress in the system building, market cultivation, total business quantity, and managerial and administrative expertise etc. However, the industry of trust and financial lease, have obviously lagged behind, even worse with the financial lease. Because of the limitation of the industry conditions, regulatory capacity, management levels and many other factors, the boom of trust and rental market in the 1980s, not only did not promote the development of financial lease, but also brought an unprecedented clean-up and rectification in the mid-1990s, which led to the implementation of policies that strictly segregated financial operations. From then, commercial banks completely withdrew from leasing industry. Finally the domestic leasing industry had experienced the depression of 15 years. It is more important to choice the path than the motivation for promoting the development of leasing industry. While the experience that other country regulate and promote the development of financial lease are compared and analysized, the trend of financial lease will be discussed in this article. In the last Chapter, he gives the most important suggestions on China leasing industry.From the aspects of structural products, the industry development process, regulations and tax policy, he gives a comparison of four countries (the United States, Japan, Germany, and China). Basis on the experiences of these countries, combining with the new trend of financial lease, he analysises the lease status of China and suggests ways to develop China's financial lease industry.The main contributions of this treatise are:1. Making a systematic study on the international comparation of four aspects of financial lease: development, administration, taxtation and structured products. Giving an outline of experience from developed countries in financial lease, especially from UK, Japan, Germany and the U.S.. This is the first time to show a group of structured products of financial lease. Reasons for the weakness of financial lease in China have been suggested: there are some comparative disadvantages on development way, taxation, administration and financing cost; Fund resources limit the business volume of leasing companies; Bad ROE is the main barrier to stop funds be involved in leasing; Institution is the key.2. Showing the comparasion of structured lease in different countries.3. Using the econometric methods to do quantitative analysis on the related factors that may affect the leasing penetration. Conclusions are: The volume and speed of GDP are closely related to the penetration rate of lease. Similar country system seduces similar penetration. The structure of industries affects the penetration rate.4. Using the theory of New Institutional Economics, theoritically analysising the institutional circumstance of leasing industry. With the right institution, leasing companies could link the capital market with the manufactory, avoid unnecessory taxes and reduce the transaction cost of whole society. It is suggested that financial lease is the linkage of capital market, manufactory and the enduser market of equipments.5. Giving contribution to Path Independence.6. Showing the latest situation of financial lease in China, examining the financial lease in China with a new view under the background of financial crisis. Giving suggestions on direction of China leasing industry: Financial lease can surely accelerate the development of economics; China needs to encourage Chinese-fund and Chinese-control companies; It is necessary to enhance the core competitive ablities of Chinese companies; Open the market to foreign funds only if Chinese could dominate the domestic market; Using funds and technology from all over the world to develop the substantial economics of China; Rebuild the institution based on experience from other countries.The dessertation uses the basic concepts and research methods of compared economics and new institutional economics, together with unity of deductive and inductive, comparative and empirical methods, the organic combination of qualitative and quantitative. The core of the dessertation is to analyze the choice of China's financial lease industry, when faced with the current international and domestic situations.