Research On The Relationship Of Financial Leasing And Economy Development In China

Financial leasing combines finance, trade, and services as a whole, which becomes the second to bank credit and capital market Since China Banking Regulatory Commission issued the "Management Rules of Financial Leasing Company", the financial leasing industry in China has embraced its second high-speed development period. Under the background of China’s rapid economic development, does the development of financial leasing industry in China have a mutually reinforcing relationship with China’s economic development? How can we help the financial leasing industry develop better, and let the financial leasing industry to support China’s economy to develop healthily and rapidly? These are the purposes of this paper.With these purposes, this paper in the first chapter illustrates the research background and significance of finance leasing, and summarizes the development of financial leasing in domestic and foreign countries and the understanding of financial leasing from domestic and foreign views. In this chapter, this paper also clarifies the definition of financial leasing, and determines to use empirical research and case study as the research methods. At the end of this chapter, it has a brief summary of the insufficient and the innovation of this paper.The second chapter of this paper is a literature review of the researches that the domestic and foreign scholars have carried on finance leasing. It has been found that most scholars like to focus financial leasing in the field of microeconomics. They like to study what effect of tax and law the enterprise will have if it applies financial leasing. Other scholars like to study the financial leasing in the field of financial derivatives, for example, they like to study the asset securitization of financing leasing. However, there are a few scholars study China’s financial leasing in the field of macroeconomic. On the basis, the research aim is put forward by the analysis of the relationship between the development of China’s financial leasing industry and the development of China’s economy.In the third chapter of this paper, through analyze the macroeconomic effects of financial leasing mechanism, it gets a conclusion that financial leasing can improve the development of China’s economy by promoting the combination of industry and finance. By using GDP as the dependent variable and permeability of lease as the independent variable, who have been determined as two representative influencing factors, this paper builds the linear regression model. Through the empirical analysis, the result shows that there is a positive correlation between GDP growth and permeability of lease, which shows that China’s financial leasing can help China’s economic develop.In the fourth chapter, this paper uses ICBC Leasing as the case to study the role of China’s financial leasing it plays, and the position of China’s financial leasing it has. By the analysis of the development and innovation of ICBC leasing, it shows that ICBC Leasing not only develops itself, but also the improves of China’s financial leasing industry, which helps increase the position of financial leasing industry in China’s economy development. In addition, through the cases study of equipment leasing business, directly batch purchasing aircrafts, and cross-border RMB leasing business, it further confirms that financial leasing can promote the development of economy by combining the industry and finance.In the fifth chapter, based on the previous study, it first concludes the results of this paper’s study. From the third and fourth chapters, it gets three conclusions. First, financial leasing has certain promoting effect on the economy. Second, the sound development of the leasing industry is the basis and prerequisite for the healthy development of financial leasing. Third, the combination of industry and finance is the specific path of financial leasing promoting economic growth. Besides, the paper provides insights to aid government policy making in the near future. First, rational financial innovation should be actively promoted through steady cooperation among in banks, securities companies, insurance companies and financial leasing companies. Second, the transformation of the real economy development can get comprehensive services by further playing the function of financial leasing that can combine finance and leasing assets. Third, combined process of China’s economic and financial globalization, the internationalization of financial leasing industry should be proactively promoted. Fourth, by strengthening the combination of internal risk control and external financial regulation, financial risks can be effectively prevented.