The Risk And Protection Of The Lessor In Financing Lease

The first financial leasing business in China, can be traced back to the beginningof Chinese economic reform and opening up, when the famous businessman andpolitician Rong Yiren find and import it in the era of the tide. After The Third PlenarySession of the11th Central Committee, the China International Trust InvestmentCompany has been built in support of Deng Xiaoping. Reform so far, more and moreforeign investors came into China’s financial market in various forms. They broughtcapital and technology into China’s market and brought the competition for theindustry in China at the same time. The financial leasing industry in our country hasjust started, how to improve and enhance their growing and how to perfect thefinancial leasing industry ‘s legislation environmental and law enforcement, thesechallenges are still facing to us.Since the eighteen eighties, because of the unsuitable factor and any other specialfactors of the industry, the China’s financial leasing industry has not been able tomake a rapid and full development. In fact, the factors causing the financial leasingmarket in China cannot quickly into orbit development are from various aspects,Including better legal systems, more reasonable tax system, as well as long regulatoryissues and so on. But one of the important reason is that the interests of the lessorcannot be fully effective protection and always shoulder too much risk in our financialleasing industry. Because of the weakening of the ownership of the leased property,the lacking of expertise of the lease, the unknown factors such as the use of state of the leased property, resulting in a weak position for the lessor in the finance leaserelationship. Therefore, if we want to ensure the smooth running of the finance market,ensure that the the lessor risk minimize in finance lease relationship is the mostimportant.The subject of this article is divided into four chapters: the first chapter analyzesthe basic concepts of finance leases and a variety of the oretical perspectives, anddescribing a brief of the history of finance leases and development in China.The second chapter introduces the status of the lessor in finance leasesrelationship, Including its rights and obligations, and describing the reason why thelessor in a finance lease relationship need to focus on and its importance.The third chapter analyzes the risk of the lessor in the relationship betweenfinance leases, Including the risk cause analysis, and dividing risk into the risk of thesubject matter of property rights and its own debt risk.The fourth chapter is divided into two parts, the first part is the way for we cantry to protect those two types of risk; the second part is about how to circumvent therisk scenarios the lessor may encounter from the point of view of the perfect marketsystem.