| As an indispensable public and industrial resources sector, urban water supply sector plays an important role in the development of national economy. Rapid urbanization course promotes the continuous development of water supply sector in China. However with the tightening monetary policy, financial problems of the local government, and liquidity shortage of financial institutions, the existing financing channel has been unable to meet the fund demand of water supply enterprises. Therefore, it is of both theoretical significance and practical value to explore new financing mode for water supply enterprises.The dissertation takes both the theory analysis and the case analysis methods. First it analyzes the economic characteristics of the urban water supply sector and the specialties of the financing lease business. Then it studies the management status and financial features background of an urban water supply Corporation of Z city. The corporation has large capital requirement in the coming years. However it as public institutions runs at a loss with low investment return, inadequate ability to make profit and weak ability to pay debt. Therefore the alternative financing channels are very limited for the water supply Corporation. Then the dissertation maintains that the financing lease business is in agreement with urban water supply sector abstractly. In this way we propose a financing lease solution for the company, which is an operational leaseback for the water pipe laying system representing the majority of the company assets. This solution can not only activate the company assets, optimize the financial structure, but also arrange the budget flexibly and reduce the tax. The dissertation also demonstrates the feasibility and advantage of financing lease compared with bank loan. Last but not least, the dissertation introduces the procedure of transacting financing lease business in bank, giving practical guidance to water supply enterprises. |
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