On The Application Of Finance Lease-based Securitization In China

This paper is aiming at the case analysis of financial leasing enterprises use of leased assets securitization for financing. The selected product of the case analysis—“Baoxin Special Plan Ι” is the first lease-based securitization products after the CSRC implemented filing system, Baoxin International Finance&Leasing is also the second foreign- invested financial leasing enterprises to carry out the project of lease-based securitization. Through in-depth analysis of the product from the perspective of product design, this paper in order to contribute to the improvement of product design, and from the angle of convenience of carrying out securitization project, through the combination of internal and external way, comprehensively improve the financing ability through securitization.Based on the review of the theory of knowledge of securitization and financial leasing,this paper use the method of case analysis to analyze the product. Firstly, this paper introduced the current situation of the development of financial leasing in China, And separately from the angles of assets pool, product design, credit enhancement methods and products trading structure to introduce the current product. Then, this paper gives a detailed analysis of the motivation of the product issue, the expected rate of return, asset pool, cash flow schedule mechanism and risk prevention measures. Finally, according to the analysis, this paper gives some suggestions for improving the product design, such as increasing the issuing scale to reduce costs, using external credit enhancement to achieve a real out of balance sheet, and improving the liquidity to reduce liquidity spreads. Based on the analysis, I have a further think and give some policy suggestions, such as strengthen the support of lease-based securitization, perfecting the system of laws and regulations, strengthen the construction of market liquidity, encouraging the participation of third party intermediaries and strengthen the construction of mechanism of information disclosure of details, to reduce the asymmetry.