Micro-motivations For Development Of China’s Financial Leasing

According to 2013 White Clarke Global Leasing Report, the 2011 global leasing volume reached US$724bn. America, as the largest single leasing market, enjoyed US$268.8bn volume in 2011.2011 Chinese leasing volume, after enjoying 42.85% growth compared with 2010, reached US$60.4 billion, ranking as the second largest market in the world.Financial Leasing, after born in America over 60 years ago, developed rapidly in the world. As a kind of medium and long term financing method, it has been regarded as the five major financial forms together with credit loan, direct financing, insurance and entrust fund. Financial Leasing, officially brought into China in 1981, has over 30 years development history locally. However, many people are still unfamiliar with Financial Leasing. Though leasing volume in China is listed as second largest in the world, the market penetration ratio, as the reference to indicate the development status of leasing market in a country, is inferior to 5%, far lower than 15%-30% in the mature market. After depression, financial leasing business in China re-enjoyed a booming development in 2004. Financial leasing effectively helps to improve the financing environment for small and medium-sized enterprises, promote the progress of investment and technology as well as motivate the growth of consumption. As a result, we shall help and promote the healthy and rapid development of it, so as to make contribution to the development of national economy. This paper, by adopting the theoretical research and empirical analysis, researches in to the micro motivations for the development of financial leasing in China and tries to put forward suggestions.This paper totally consists of five chapters. Chapter 1 introduces financial leasing and implements a literature review on it. Chapter 2 focuses on the development history, current status and existed issues of financial leasing. Chapter 3 theoretically analyzes the micro-motivations for the development of financial leasing in China. Chapter 4 executes an empirical analysis based on the sample companies from A Share Market in Shanghai and Shenzhen. Chapter 5 concludes the research result of this paper and tries to put forward suggestions.