Research On The Finance Lease Assert Securitization In China

The financial leasing industry of China started in the 1980 s, experiencing rapidly development and long-term twists.Between the late 1990 s and first the 21 st Century; it was in a relatively quiet state. Since 2007, China Banking Regulatory Commission allowed the commercial banks to set up non-bank institutions holding financial leasing companies; it was in the rapid development. The market size increases the 70 billion Yuan in 2007 to more than 2 trillion Yuan in 2013, achieving about 30 times growth.The rapid development of the industry is inseparable from the industry to improve the environment. At first, the four pillars supporting the development of the industry- the legal, regulatory, tax and accounting is basically in blank. Until the 20 th century was to determine which of the four basic pillars laid for healthy and sustainable development of the industry cornerstone. After 2007, with the rapid development of business, various problems facing the industry is more prominent. In this context, the relevant regulatory authority was promoting the improvement of the industry which began to pay more attention to the environment.Leased asset securitization has proven itself to be an effective way to finance leasing companies. Leased asset securitization is issuing Lease asset-backed securities after restructuring the leasing debts. The role of the leased asset securitization financing for the leasing company is not the only function, as well as the optimization of the capital structure, reduce business risks.At present, a number of leased asset securitization practices have been made, but all of them were backed by a small number of assets and still belonged to the start-up phase. Further development of the leased asset securitization not only has constraints which come from the leasing companies themselves, but also faces obstacles in the external environment, including aspects of relevant laws and regulations, examination and approval system, credit system, etc. In this paper, a detailed analysis of the necessity, feasibility and obstacles of the development of the leased asset securitization is made, following with a conclusion that further development of asset securitization requires participating parties’ joint forces. At the end of this paper, policy suggestions of building the finance lease asset securitization development path were put forward.