A Legal Study On International Financial Leasing

International financial leasing is the result of the evolvement of modern leasing. Since the end of the World War II, international financial leasing has undergone rapid development. An international financial leasing contract, like any other contract, is comprised of three main legal elements, i.e., the contracting parties, the subject matter and the concrete rights and obligations.In China, the practice and legislation concerning financial leasing had been carried out in a premature legal environment. At this stage, it is an urgent task to enact an authoritative lease law that could be applied for a long period of time. It is desirable to promulgate a finance lease act. At the same time, an effective registration regime governing the chattels mortgage should be established, so that the transactions involving mortgage of mobiles could be secured.With China's accession into the World Trade Organization (WTO), the financial market is obliged to gradually open to the foreign investors. In the coming years, much more foreign funds would flow into the financial leasing area and hence competition is surely going to be much fiercer. Clearly, the issue of legal supervision over international lease institutions is becoming more important. At the same time, for the Chinese financial leasing sector to grow against the backdrop of economic globalization, we should play by the rules of the game widely accepted by the international community. To protect its own interest, China should take part in the formulation of a Convention on International Financial Leasing in cooperation with other countries and international organizations as well.