China'S Financial Leasing Industry Is Still "Green".

Since the establishment of international leasing business in 1979, China's financial leasing industry has come to the end of the year.

However, the embarrassment of the leasing industry is that many other professional sectors of the financial industry are still vague about the concept of financial leasing.

30 years of exploration is so "green".

In 80s of last century, as an important window for the state to make use of foreign capital under the planned economic system, the Sino foreign joint venture financing leasing company flourished once and for all.

However, with the deepening of economic restructuring, influenced by factors such as the restructuring of state-owned enterprises, the failure of guarantee and the drastic change of exchange rate, almost all the financial leasing industry was beset by heavy arrears in the whole 90s of last century.

In twenty-first Century, China's financial leasing industry began to recover.

At present, there are more than 150 kinds of financial leasing companies, and the assets management scale can reach more than 600 billion yuan (RMB), and the amount of financial leasing pactions has increased rapidly, which has exceeded 100 billion yuan last year.

However, the penetration of financial leasing (the ratio of the amount of lease paction to total investment in social equipment) is still less than 3%, while that of developed countries is over 25%, and that of the United States is more than 30%.

The financial leasing industry, which has the same business scale as that of bank credit in developed countries, has great room for expanding domestic demand and promoting growth and solving credit problems, especially for small and medium-sized enterprises.

"The financial leasing market should be recognized at the level of the national economic management system, which is based on the basic role of market allocation resources under the guidance of macro regulation."

The deputy chairman of the leasing industry committee of the China Association for foreign invested enterprises (hereinafter referred to as "the leasing industry association"), deputy chairman of the association, said Mr. Qu Yan Kai.

China's financial leasing industry must find its essence.

Not only as a loan intermediary, but also to increase the value of assets and achieve differentiation.

Zhou Jianzhen, a partner of Alta consulting firm, said: "the return on assets of China's financial leasing industry will be far greater than the international average level, and the international 12%~16% will be 1 times more than China's.

The 1 market threshold is too high. Qu Yankai believes that the system of financial leasing market is far from complete because the threshold is too high.

The CBRC stipulates that the minimum registered capital of a financial leasing company is 100 million yuan or equivalent convertible currency.

The Ministry of Commerce stipulates that the registered capital of foreign investment finance leasing companies shall not be less than 10 million US dollars.

According to the regulations issued by the Ministry of Commerce and other departments on the pilot projects of domestic leasing enterprises engaged in financial leasing, the pilot enterprises of financial leasing should meet: the minimum registered capital of domestic leasing enterprises set up in August 31, 2001 (inclusive) should reach 40 million yuan, and the minimum registered capital of domestic leasing enterprises set up from September 1, 2001 to December 31, 2003 should reach 170 million yuan.

"The threshold is too high to prevent light, regional, professional financial leasing companies from entering the industry."

Qu Yankai said, at present, the main business of financial leasing companies in banking sector is concentrated on large equipment, such as aircraft, ships, etc.

Qu Yankai believes that domestic leasing enterprises can directly spread out.

Foreign investment finance leasing companies have been handled according to the normal administrative licensing examination and approval procedures. Whether domestic funded enterprises engage in financial leasing business or set up Finance Companies or jointly approve with the relevant departments according to the pilot management method, there are different market entry barriers.

Zhou Jianzhen believes that small and medium-sized businesses are the core, because SMEs are more lack of credit resources, and the ability to obtain bank financing is even worse.

However, banks mainly determine the risk level according to their types, so it is difficult to understand the characteristics of each entity.

"There is a paradox in solving the financing difficulties of small and medium-sized enterprises. It has no credit and loans to it."

Qu Yankai believes that the biggest support for small and medium-sized enterprises is to let it seize the opportunity to make money; it can not buy equipment, and no credit loans, then purchase equipment to rent it; with lease credit, it can gradually accumulate loan credit.

"The risk of leasing credit is far less than the credit risk, especially if the leasing company of the manufacturer fails to pay the rent, the equipment is still there, the remaining value is still there, and there will be no loss of 100%."

The development of financial leasing is a starting point to solve the financing difficulties of SMEs in China.

Qu Yankai said, "just like some enterprises say, I do not do technological pformation (update equipment)" wait for death ", do technical pformation, I" seek death "; manufacturers say, I do not do installment payment" wait for death ", do installment payment, I" seek death "; some banks (or some departments of banks) said," I do not lend "wait for death", lend you money, I am also "looking for death".

This shows that our structure is defective, and we lack a main body - the third party equipment investment body.

Financial leasing companies are the third party equipment investment entities.

The financial leasing is a kind of outsourcing of credit sales. For banks, financial leasing is a new channel for allocation of funds; for the lessee, financial leasing is a financing way with material as the carrier; for capital markets and investors, financial leasing is a new investment mode; for high-end clients of financial institutions, financial leasing is also a financial channel.

"If banks realize that supporting the leasing companies of professional firms, they can be used as institutional customers to support small and medium enterprises, which is far cheaper and more risky than their own direct costs," he said.

Qu Yankai believes that although banks set up their own leasing companies, for small and medium-sized customers, they can only cultivate professional customers through professional firms. Professional competence, large-scale and chain rental services are the most satisfying customers who lack credit.

Although the financial leasing companies have high registered capital, the financial leasing companies do not feel the status of financial institutions, especially in the financing channels. 2

Apart from capital, financial leasing companies can only rely on bank credit. Although other gates are not closed, it is not easy to open them.

"China's financial leasing is still fighting alone. It basically depends on the financial strength of shareholders, relying on shareholders' loans. The leasing companies set up by equipment manufacturers depend on the accumulation of manufacturers, and the leasing companies set up by banks rely on the accumulation of bank capital."

Zhonglian Xinxing Construction Machinery Leasing Co., Ltd. (hereinafter referred to as "China United lease") Wan Jun said.

The trust company began to enter the financial leasing paction.

In addition to some trust companies to raise funds to engage in leasing business, some trust agencies cooperate with finance leasing companies to raise funds for the latter.

China Alliance leasing is also trying to cooperate with banks and trusts to raise funds through the way of financial products.

The company is trying to lobby funds such as insurance to enter the rental market, and WAN Jun hopes that with the development of the market, financial leasing companies can directly finance the public as a market entity.

In May 15, 2006, beneficiary documents of rents of the Far East International Leasing Company (hereinafter referred to as "Far East lease") were listed on the Shanghai stock exchange.

The product is guaranteed by the Far East leasing parent company. It is only a quasi securitized product, but far east leasing products are still isolated.

Zhou Jianzhen said that packaged leasing assets are hard to achieve standardization, making it difficult for the public to make judgments on asset quality and risk and encourage private placement.

Li Siming, chief executive of Agricultural Bank of China Financial Leasing Co Asia region, believes that the prerequisite for diversification of financing channels is the opening of capital markets. Financial leasing companies can enter the capital market and participate in interbank lending among financial institutions.

At present, the business scope of the "financial leasing" licence includes interbank borrowing.

But a senior financial leasing company executive said: "our current financing channel is basically capital."

The bank finance leasing company can not obtain loans from the parent company, and the financial leasing company has made continuous profit in the last two years before applying for interbank loan market.

The 3 law needs to be improved. "Another major obstacle to the development of the financial leasing industry is the lack of a sound legal system."

Qu Yankai thinks.

Financial leasing has four major frameworks: trading rules, regulatory rules, tax rules and accounting standards.

"When we started, there were no four rules, and we could only cross the river by feeling the stones."

The first finance leasing company, Min Yimin, the first chairman of the Eastern Leasing Company, said.

After more than 20 years, the four major financial leasing frameworks have been basically built up.

"The four legislative frameworks still have shortcomings."

Qu Yankai believes that if the finance lease special contract in the contract law is difficult to adjust the attribution and use of civil relations in financial leasing pactions, the regulatory system still needs to be clarifying, fiscal and taxation policies need to be clarifying clearly, the statistical system is still blank, and industry organizations and industry self-discipline need to be perfected.

Combining with the characteristics of China's legislation, we should have a comprehensive legislation to promote and standardize the development of financial leasing industry, and a special law that is higher than and harmonizes the existing laws and regulations.

Qu Yan Kai said.

In 2003, the Standing Committee of the National People's Congress put the financing lease legislation into the legislative plan of the NPC, but failed to complete the legislation and was not included in the legislative plan of the eleven NPC Standing Committee.

People familiar with the matter revealed that the legislature is controversial about whether a separate legislation for financing leases is needed.

This person said that although some problems can be solved by the State Council's policies and regulations, the legal aspects, especially the real rights issues, can only be solved by law, even if the judicial interpretation is difficult to coordinate the problems of property rights.

In order to clarify and protect the relevant rights in financial leasing pactions, the Leasing Industry Commission recommends that the central bank's credit information center build a credit registration and credit inquiry system covering investment, financing lease, credit, trade, consumption and guarantee, so as to ensure equal protection of various claims.

In the second half of last year, the leasing industry committee and the central bank's credit information center actively carried out the research on the development of the financial leasing registration publicity system, and in September last year, the representative of the finance leasing company organized the trial of the existing accounts receivable pledge registration system.

The leasing industry committee said the system is expected to meet with the industry in the first half of this year.

The financial leasing registration system can solve some problems in the absence of financial leasing law.

The legal profession believes that the system can only solve the problem of property registration from the technical level, but registration requires legal authorization. The central bank's accounts receivable registration is authorized by law, and the registration of financial leasing is not authorized by law. There are no legal restrictions on the bona fide third party and the lessee handling the leased object.

Qu Yankai believes that the registration of financial leasing is essentially a kind of creditor's right registration, and it will indicate the creditor's right formed by the finance lease relationship. The parties can claim the lease relationship through the registration of the creditor's rights, and the parties' claim for the relationship formed before the mortgage is supported by law. The lease relationship is formed before the bond is mortgaged or pledged, and it should be supported.

The legal effect of financial leasing registration is expected to be supported in the relevant judicial interpretations being formulated.

In the whole legal system, financial leasing business is difficult to carry out in many areas or the cost is huge.

He suggested that the Ministry of Commerce, the China Banking Regulatory Commission and the General Administration of industry and Commerce jointly formulate departmental rules or regulations promulgated by the State Council, and explicitly make the registration of movable property other than aircraft, ships and motor vehicles by the SAIC, so as to facilitate the implementation of the principle of equal rights for the protection of property rights.

In terms of tax rules, the value-added tax pformation scheme implemented since January 1st of this year did not explicitly obtain the value added tax deduction through the way of financial leasing.

Qu Yankai believes that in the field of value-added tax, financial leasing is completely out of competition because it can not deduct the value added tax.

The leasing industry committee recommends that in the formulation of various tax preferences for investment credits, tax rebate policies and financial subsidies, the application of financial leasing business under different trading conditions should be clearly defined. Starting from the economic ownership of financial leases, it clearly stipulates that the party who accounts for the leased assets and extracts the depreciation is applicable. It is recommended that the application of tax reduction for domestic enterprises when they adopt the financial leasing method for importing equipment through domestic financing leasing companies.

In August 12, 1979, min Yimin went to CITIC (China International Trust Investment Company, CITIC Group predecessor) to work.

Min Min has worked in the people's Bank of China, Bank of China and Agricultural Bank of China, and Rong Yiren, who is in urgent need of financial talents, invited him to join CITIC.

In early 1980, min Yimin was assigned by Rong Yiren to take the lead.