Application Of Real Option In Financial Leasing Of Marine Engineering Equipment Manufacturing Industry

Nowadays the China economy is in rapid development, we are in urgent need of industrial upgrading and transformation, transforming from the simple "made in China" to "created in China", and further developing our country’s equipment manufacturing industry. As a part of this strategy of becoming a powerful country, the development of marine engineering equipment industry is the most important. Without the strong support of national policies, there won’t be the rapid development of China’s marine engineering equipment manufacturing industry in the "The twelfth Five Year Plan" period,and with the marine equipment manufacturing industry becoming the national high-end equipment manufacturing new industry ——the key point of the " The Thirteenth Five Year Plan " planning——its development potential is enormous. According to my practical work in Finance Leasing Company, the development prospect of marine engineering equipment industry is huge, but due to technical and financial problems, a lot of ships are hanging other country’s flag however manufactured in China, in the final analysis, this is due to the high cost of domestic financing. Although in 2014 and 2015,China has cut into the channel, it’s still difficult for enterprises to get low-cost funds from the banks. Then the advantage of financial leasing become prominent, it won’t occupy the line of credit of enterprise, won’t increase the enterprise’s asset liability ratio,and also has low cost. Combining the finance of funds and assets is becoming a sharp sword for the development of equipment manufacturing industry.The current development of marine engineering equipment leasing once encountered bottleneck, this is because in the face of a long construction period and large amount of financing, Finance Leasing Company had to consider the secondary market problems of the lease, and marine equipment companies have to under the background of interest rate liberalization balance each engineering value in return. The secondary market is the main problem which needs further legislation and market norms of the state. For evaluation of engineering aspects, the author put forward to solve this problem, real option.But the traditional methods of project evaluation has problems such as biased risk measurement, too single variable factors consideration, etc, these problems seriously restrict the application of leasing project in the super long-term marine engineering projects.I design a pricing model which is exclusive for financial leasing project by adopting real option pricing method,and verify feasibility through living example, hope to provide a new solution for financial leasing project evaluation of the marine engineering equipment industry.This paper first makes a brief introduction to the research background, ssignificance and main research contents. And then through the technology road map, and explains there search method and the innovation point of application. The second part is the collation of combing the marine engineering equipment, financing lease, real option theory, and analysis and study the applicability of real options in marine engineering equipment financing leasing project. The third part is the analysis on innovation of marine engineering equipment leasing project. Based on the current situation of the development of financing lease, I discussed the feasibility of marine engineering equipment lease financing from four aspects. And the lease financing and bank loans, installment in comparison, find financing lease financing method cost advantage. The fourth part is the analysis on real option characteristics as the breakthrough point, to marine engineering equipment leasing related knowledge as a guide for the corresponding real option analysis. The fifth part introduces the basic principles and assumptions of real option. According to need to design and detail need to tear down the growth option pricing model of Black-Scholes, and the one variable set to explain. The sixth part uses case to prove. The seventh part is the research conclusions and enlightenment.The innovation in this paper:(1) The development of domestic demand system research present marine equipment industry, put forward that restrict the development of root.(2) The development mode of mutual benefit and win-win situation puts forward financing lease in the marine equipment industry in the study, and its present state of development.(3) Comparative analysis of financing lease and bank credit cost difference.(4) By the development of real option pricing model, put forward the new financing lease.