A Research On Financing Model Of Leasing Assets Securitization In China

In order to open new avenues for utilizing foreign capital and to strengthen international technical and economic exchanges, China in the initial stage of reforming and opening up has introduced financing leasing formats from developed market economies. Developing to nowadays, financing leasing, with its unique features in promotion of sales, improving investment and financing and asset management, has become a great "booster"for China's economic development. But its comparatively single financing channel and asymmetric assets/liabilities structures of "short-term liabilities supporting long-term assets" curbs its healthy development. Choosing an effective, appropriate and feasible new-type financing method has become the urgent matter of the financing leasing industry in China. Generally speaking, most assets in leasing financing company exist in the form of leasing claims (rental receivable claims). If financial leasing companies dispose leasing claims as asset securitization, with the release of the leasing securities supported by assets, they can obtain purchase consideration from the investors and solve the financial problems. Actually, such financial method of financing income as oriented mode is securitization of leasing asset. It relies on the future profitability of the leasing asset to achieving financing. On the one hand it may withdraw long-term debt in advance, and on the other hand it can also improve the adequacy of floating capital. Leasing asset securitization can solve funding constraints perfectly that leasing financing company facing, and is a kind of effective financing ideas being proved.By taking leasing asset securities as the research object, the author firstly expounds the basic theory of the leasing asset securitization, including definition and classification of asset securitization, concept of the leasing asset securitization and business transaction structure. Secondly, through the application analysis on leasing asset securitization in China's financing industry, the author points out that China is facing capital financing constraints, and puts forward the leasing asset securitization possesses financing advantage that conforming to financing capital requirement, as well as proofs the implementation feasibility of leasing asset securitization. Thirdly, taking the pilot project of China's leasing asset securitization–-"Far East First Project"as the example, it analyses and evaluates the prototype of leasing asset securitization presented in the case, and made detailed design and operational analysis as mainline in leasing asset securitization of using such a model as a blueprint. Finally, the author gives a detailed analysis on risks that could meet in the designed leasing asset securitization model, and on such a basis, the author also further proposes preventive strategy to these risks.The author believes that financial constraints that China's financing industry is facing hinders its healthy development, while leasing asset securitization as a new finance means is a feasible new way leading financing industry stepping out of financing difficulties. By constructing a standard leasing asset securitization, which conforms to China's legal system and possesses leasing asset securitization as a core element, it can help China's financing leasing industry successfully get long-term, stable and low cost capital sources as well as remove financial pressures by capital markets.