Research On Legal Issues Of Biological Assets Finance Lease

The modern financial leasing industry was born in the United States in the 1950 s.Since then,it has been growing at an average annual rate of 20% in the world.Financial leasing combines “financing capitals” with “financing goods.” As for tenants,it is a new type of financing and a special form of credit.It's new investment and trades method for lessors.The financial leasing connects finance,trade and production,developing together with trust,securities,banking and insurance.It has developed into “Sunrise Industry” and a “fifth pillar industry” in the financial industry.Compared with western developed countries,the development of Chinese financial leasing industry started late because of the economic lag.It started in the late 1980 s,and it is based on the experience of the financial leasing industry in western developed countries.It is more than 30 years later than the United States.After the reform and opening up policy,in order to integrate into the world trend,strengthen economic exchanges,and cooperation with the international community,develop its own economy,look for new ways to utilize foreign capital and introduce advanced foreign technology and equipment,China International Trust Company introduced the lease method in 1980;in April 1981,China Oriental Leasing Co.,Ltd.was established,which was the first joint venture leasing company in China.In July of the same year,the China Leasing Company was established and began to engage in financial leasing business on a larger scale.Since then,Chinese financial leasing industry was born.Nowadays the scale of financial leasing in China is unprecedented.It is due to Chinese unswerving insistence on the development and tireless innovation of the market economy.The development of financial leasing has provided emerging and more convenient financing channels for SMEs in the market,and also saved a number of enterprises,which in turn has helped the market economy.Although financial leasing has developed rapidly in China,its development is not sound.As an important force in the market economy,"agricultural enterprises" have been refused to some extent by financial leasing.On the one hand,of course,it is because the capital needs of agricultural enterprises are relatively small(Only in comparison to companies with large equipment.The absolute amount is still large,the author will analyze it in the text.),and the risk of financing leases is relatively high.On the other hand,it is because Chinese law on financial leasing is not very sound,and it is not clear about how to use biological assets for financing in a legal scope.Mr.Xia Bin believes that the following four factors are crucial to the development of Chinese financial leasing industry.Firstly,enterprises and entrepreneurs must have a certain degree of rent awareness;secondly,the function and nature of finance leasing are relatively well understood by leasing transaction entities and management agencies;thirdly,the related business operations are flexible and standardized;fourth,we have a sound institutional environment.After more than 30 years of development in China,the first two factors have already been established,but the most important institutional environment is not ideal in China,which restricts the standardization of business.This is strongly reflected especially in the financial leasing business with biological assets.The relevant authorities in China have already realized that and in 2016,they emphasized “extending the subject matter of financial leasing to biological assets”,but so far no detailed regulations have been introduced and no incentive policies have been introduced.How to use financial assets for financial leasing is still a big problem.After experiencing the practical operation of related business,the author has some insights.This paper intends to explore the legality of biological assets as the subject of financing leases,the attribution of biological assets during the financial leasing period,whether the biological assets can meet the specific needs of the leased property,the implementation of the financing lease contract and the access issue of the financial leasing company operating the biological asset financing lease,etc.from the development scale and capital demand of Chinese agricultural enterprises.In this way to provide appropriate advice institutionally on the development of the biological asset financing lease.