Research On Modeling Designation Of Securitization For China’s Financial Leasing Industry

Financial leasing is an effective method for enterprises to solve financing problems, especially for small and medium sized enterprises. Since 2008, the financial leasing industry has experienced a dynamic development, the number of financial leasing firms has increased from 107 in the end of 2008 to 13026 of 2013.By the end of 2013, the sum of registered capital of the total industry was 306.233 billion RMB. However, the function of financial leasing firms is restricted by resources of funding. Securitization could make leasing firms issue securities by leasing assets of poor liquidity, thus elevating financial status of leasing firms. According to the Administrative Regulations of Securitization Business for Securities Companies, published by China Securities Regulatory Commission in 2013, securitization has turned from experimental business to routine business, meaning that leasing firms have a easier access to securitization, which will help them to fund with a lower cost.The main body of this dissertation focuses on securitization. The first part is about related background and literature. The second part is about theories about leasing asset securitization, including basic principles, basic incentives of leasing firms, the funding advantages brought to leasing firms and the unique characters of leasing assets securitization. The third part is reviewing history of leasing asset securitization in China and U.S.A., pointing out the obstacles Chinese leasing assets securitization may face and what can we learn from American’s experience. The forth part is about practical model design about Chinese leasing assets securitization, the value analysis process about leasing assets backed securities, the risks involved in securitization process and related risk treatments. The last part is about policy proposals and the outlook for future of Chinese leasing assets securitization.The conclusion is that leasing assets securitization could solve funding problems bothering leasing firms. The practical model design for leasing assets securitization helps leasing firms fund at a lower cost. releasing financial pressure.