| Financial leasing, which is also defined as financial lease, is appeared since 1952 in the U.S. In the Western developed countries, financial lease has been one of the financial industries abreast to banking, securities, insurance, and trust business; it is an important mainstay of many countries’financial systems; it significantly contributes to perfect and advance a nation’s economic structure and increase. In 1980, financial lease was introduced into China as a significant way of attracting foreign capital. The development course of financial lease is synchronous with the reform & opening steps of China; it acts as a new type of financial tool and has greatly contributed to bring in advanced foreign equipments and to introduce foreign capital into China in the early stage of reform & opening. Finance lease is an emerging financial instrument under the conditions of modern large-scale production which combine with commercial. It’s an innovative means of credit when the market economy develops to a certain height. In the international capital markets, financing, leasing has become the second largest financial method after the bank credit. Financial leases, compared with other financing methods, have its own advantages; however, the advantages of financial leasing have not been fully reflected and its development didn’t keep pace with the growth of economic in China. Against this issue, this article analysis the status of financial leases of China comprehensively, explore actively the formation mechanism of the existing problems and research various of constraints and the choices on the base of comparing financial lease with other lease methods. This paper is divided into six parts; combining the history and reality, theory and practice, researches constrains and choices of financial leases in China.Part one is the introduction part. This chapter firstly discloses the problem about the lag of China’s financial lease industry and summarizes the situation of theory studies of financial lease. Presently, foreign studies of financial lease mainly focus on quantitative & qualitative analysis. The Four Main-Theories think that laws, taxation system, financial accounting, administrative regulations buildup the foundation of financial lease industry, those theories support and impact on financial lease. Research areas of other theories of the scholars focus on analyzing the advantages & disadvantages between lesser and tenant within financial lease, the application of financial lease on capital market, the securitization of creditor’s rights, credit risks of financial lease, the value of lease agreement under the situation of incomplete information, and so on. Developing time of financial lease in China is relatively lacking, its facilitation on economic development is not obvious yet, accordingly, the relevant study of financial lease theories begins relatively late. Most existing studies of domestic scholars mainly focus on a certain aspect to analyze on financial lease with emphasis on the researches of advantages & characteristics.Part two is about the main meaning of new period. This chapter analyzes the development of financial lease of China in new era, mainly refers to the influence by financial crisis and environment for development of financial of China. This part firstly analyzes the new changes of world’s economic situation after the U.S. financial crisis broke out, and analyzes about the developing situation of China’s financial lease industry in new period. Judging from the current financing environment for Chinese enterprises, our government had moderated loose monetary policy, but because of being lack of diverse, multi-level and multi-channel financing system, coupled with that the financial market is not perfect, the channel and methods of financing are relatively homogeneous, the current financing environment is not conducive to the development of Chinese enterprises. At present, the trend of world economic development is still uncertain; the traditional mode of financing can’t solve the financing problem for many enterprises in China. Financial lease combine the bank credit, commercial credit and consumer credit. It is an innovative financial instrument which can effectively prevent enterprises from relying on bank credit. On the background of financial crisis, the policy of expanding domestic demand will expand the liquidity of domestic financial market liquidity which can supply capital for financial lease industry.Part Three is about the contrast between financial lease and other financing modes. This part mainly analyzes the differences between financial lease and other financing modes, indicates advantages and disadvantages of financial lease basing on analyzing two major types of financing (financing by shareholder’s or creditor’s rights). In China, various kinds of non-public shareholder’s-right-financing business still stays on the beginning level of industrial development stage, that is, it has not been mature and been generalized yet. Another financing mode is to sell floating stock, but it is very difficult for firms because of rigorous requirements and barriers for firms to go public. Contrast to finance by sales of floating stock, financial lease has the characteristics such as fast trading process and easy, so it can resolve financing problems of firms in due course. Through contrasting by the Net Present Value Method between financial lease and bank loan, we discover that the after-tax net cash flow of financial lease is less than bank loan; in other words, capital cost of financial lease is less. Expenses and time cost occur if a firm applies to a bank for loan, financial lease is an advantaged financing tool.Part Four introduces about the historical evolution and problems of financial lease in China. This part firstly introduces the worldwide origin and development situations of financial lease, analyzes the historical evolution of financial lease in China. From the historical evolution, it indicates that the developing progress of financial lease in China has come through a flexuous and complicated process. Secondly, this part particularly introduces the current economic background in new period, emphasizes on analyzing about the new changes of world’s economic situation after the U.S. financial crisis broke out, and analyzes about the developing situation of China’s financial lease industry in new period. Thirdly, based on the reality of China’s financial lease industry, this part particularly analyzes the developing situation of China’s financial lease industry. Under the background of globalization, as market competition becomes scorching, many firms in China are facing the problems of equipments renewal and techniques up gradation. In addition, after global financial crisis caused by the U.S. subprime mortgage crisis, China’s government has instituted the 4,000-billion-economic-stimulation plan and relatively loose currency policy to cope with the crisis. Financial lease may be able to relieve capital stress of manufacturing firms, facilitates the financing of capital, and greatly enhances equipment investments. Finally, this part roundly analyzes the problems of China’s financial lease industry in new period, indicates that China’s financial lease industry facing various problems, and synthetically analyzes those problems. Presently, the main problems of China’s financial lease industry are underdevelopment of the market, slowness of the industry development, weakness of market competitive strength.Part Five is about the analysis on various kinds of restriction factors to financial lease in new period. Basing on the reality and basic theories of China’s financial lease industry, this part deeply research on the restriction factors that restrict the development of financial lease industry. It concludes four restriction factors:fiscal and taxation policies, channels of financing, restriction from financing targets, business modes of financial lease. Restriction from channels of financing narrows the capital source of financial leasing firms, leads to financial lease firms run into capital jam. Restriction from fiscal and taxation policies causes high cost stress of capital on financial firms, reduces market competitive strength of financial lease business; in other words, if customers choose financial lease, they need to pay more monetary costs than financing from bank. Thus, positivity of financial leasing firms is discouraged. Restriction from financing targets limits the capacity of financial leasing firms to satisfy customer needs and to develop market potential. Restriction from business mode causes the firms cannot effectively catch up with customer needs under market competition, thus, business exploitation and industry development are restricted.Part Six introduces the choices for the development of China’s financial lease industry in new period. On the base of analyzing the restrictions of China’s financial lease industry, this part researches on the choices of counter measure to eliminate the four restriction factors on China’s financial lease industry in new period from the angle of developing financial lease industry. According to the researches on various restriction factors on China’s financial lease industry, the precondition for developing financial lease is to eliminate various types of restriction. The only method for releasing great potential of China’s financial lease industry and for enhancing its development in new period is to apply a series of countermeasures to eliminate the restrictions on the development of financial lease industry. This part concludes several countermeasures including to perfect legal environment, to unite regulations, to widen capital source, policy support, risk control, H.R.training, internal construction. The last part is conclusion of this thesis. Basing on round analysis on restrictions and choices of countermeasure for China’s financial lease industry, this part provides detailed conclusion of this research. To deeply research on the restriction factors on financial lease, to base on principles of the formation of those restriction factors, and to choose corresponding countermeasures to eliminate those restrictions are the keys to enhance the development of China’s financial lease industry under the background of new period. |
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