Research On Asset Securitization Of Financial Leasing Companies

The business of finance leasing company has the dual rights of "property right"and "creditor’s right",which can serve the industry companies well and drive the development of economy.Therefore,supporting the development of finance leasing companies is the proper way for the society.China’s finance lease industry has also achieved rapid development in the last two years.The number of financial leasing companies has been increasing in China.with a growth rate of 27.4%in the end of 2017.The number of China’s financial leasing companies is increased from 7136 to 9,090.The total registered capital of financial leasing enterprises in China amounted to 3203.1 billion yuan,with a growth rate of 25.3%.The registered capital of domestic pilot enterprises was 205,7 billion yuan,and the registered capital of foreign capital leasing enterprises was 28.00 billion yuan.Financial leasing companies are also very popular in capital markets.By the end of 2016,there were 347 financial leasing companies being setting up or holding by the listed companies with a significant increase.By holding or setting up finance leasing companies,listed companies can update their equipment,and then carry out industrial transformation and upgrading;It also helps to expand existing financing channels and accelerate the combination of existing business with finance lease.The establishment of the equity financing lease can change way of enterprise management.Moreover,the asset securitization of leasing assets is also popular in market.In the past two years from 2014 to 2016,the scale of asset securitization of China’s leasing assets has made great progress,and the cumulative issuance volume has reached 107.48 billion yuan.Therefore,asset securitization is popular in the capital market,its outstanding financing function is recognized by the market,becoming an important tool to promote the development of financial leasing companies.The business of finance leasing company has been in a state of growing.Financing lease company business need large financial support,but the traditional banking credit business compliance requirements is higher,relying on bank credit can’t solve the problem of financing difficulties.Asset securitization can expand the financing channels of finance leasing companies and transfer their business model.Financing lease company will get cash in advance and reduce operating cycle of assets by asset securitization.The results is improving the operating ability and the profitability,reducing the financial risk.On the other hand,the asset securitization can transfer the risk of asset management through some kind of structures.However,the process of asset securitization is complicated,so all the participants need be responsible for asset securitization and fulfil their own duties.It is necessary to consider that how to choose the right foundation assets.This paper firstly introduced situation of financial leasing industry,which Indicating that financing leasing industry has developed rapidly,while existing many problems,such as lacking of capital.The problem has become a hider for financial leasing companies.It is crucial to solve this problem.Then the paper introduced the benefits when applying the asset securitization in financial leasing companies.That way not only can solve the money problem in financial leasing companies,but also can reduce the risk of financial leasing companies.Secondly,I try to focus on the risk of asset securitization.After that,introducing a case of asset securitization.The reason that selected this case is that most of the financial leasing companies is small.The establishment time of financial leasing is short.Although shareholders of the company is strong,it is a typical case of small and medium-sized financial leasing company.The research of the asset securitization products can reflect problem of financing lease companies when applying asset securitization.