Financial leasing companies are non-banking financial institutions approved by the China Banking Regulatory Commission (CBRC) to operate financial leasing business (see the Measures for the Administration of Financial Leasing Companies for details).
Without the approval of the China Banking Regulatory Commission (CBRC), no unit or individual shall operate financial leasing business or use the words "financial leasing" in its name, except as otherwise provided by laws and regulations.
Leasing business includes two categories, one is a physical leasing company, a financial leasing company. The difference between the two is that the former only transfer the right of use, and then eventually transfer ownership.
So, the financial leasing company is actually a financial institution, and the bank is different in that the bank loan to the enterprise, the enterprise used to buy equipment to pay interest first and then return the principal. Financial leasing company is to buy equipment, and then lease the equipment to the enterprise, the enterprise pays the lease fee, for example, pay five years of lease payments, the sum of five years of lease payments equal to the fund plus interest.
Expanded:
Financial leasing company China's development
Origin
Origin
Chinese financial leasing industry originated in April 1981, and the first financial leasing company was a Chinese-foreign joint venture. The earliest leasing companies appeared in the form of Sino-foreign joint ventures, with the original motive of introducing foreign capital. Since July 1981, the establishment of the first non-banking financial institution composed of Chinese capital "China Leasing Co.
After 1997, Hainan International Leasing Co., Ltd, Guangdong International Leasing Co., Ltd, Wuhan International Leasing Co., Ltd and China Huayang Financial Leasing Co., Ltd (closed in 2000) have withdrawn from the market. At present, there are 18 financial leasing companies operating normally after capital increase, and they are mainly engaged in public transportation, urban construction, medical, aviation, IT and other industries.
Development
Financial leasing is an effective mechanism for resource conduction and capital form transformation between different capital markets. Since financial leasing has the incomparable advantages of other financing methods, it has been commonly used in the international arena and its development speed is second to none. In the early eighties, as a product of reform and opening up was introduced into China, in the past 20 years China's leasing industry has made great progress, but for various reasons.
Financial leasing companies generally have a more chaotic business scope, too much investment in high-risk areas and negligence in risk control and asset management, coupled with China's market economic system is not sound, the development of the leasing industry, the four pillars (law, supervision, accounting standards and taxation) is not supporting, resulting in some financial leasing companies are facing a deterioration in asset quality, serious payment difficulties, Normal business operations have become unsustainable.
Improvement
With the continuous improvement of China's market economic system, the further development and improvement of China's capital market, the legal, supervisory, accounting standards and tax environment to support the leasing industry more and more, according to the requirements of the 10th Standing Committee of the National People's Congress legislative planning.
The Tenth National People's Congress Finance and Economics Committee organized the Ministry of Commerce, the China Banking Regulatory Commission and other departments in a full investigation and research, listen to the views of all parties, combined with the national conditions of foreign experience based on several drafts, formed the "Chinese People's Republic of China *** and the State of the Financial Leasing Law (Draft)" (the second draft for comments).
Financial leasing legislation will promote the marketization of the financial leasing industry, revitalize fixed assets, optimize resource allocation, meet the requirements of technological transformation of enterprises, improve the level of enterprise technology, promote the development of small and medium-sized enterprises, and guide consumption.
Increase the industry and other aspects to play a positive role, financial leasing legislation will promote the rapid development of the financial leasing industry, in accelerating the depreciation, provision for doubtful accounts, turnover tax payments, tariff payments, foreign exchange settlement of sources of funds and other aspects of the major policy support, the macro-political environment is very conducive to the development of China's leasing industry.
Prospects
The next few decades is the period of China's economic development on the stage, the country will continue to invest heavily in energy, transportation and infrastructure, Chinese enterprises after decades of market-oriented operation and accumulation of the urgent need for industrial renewal and technological transformation.
These will bring a large number of complete sets of equipment, transportation, special machinery needs, and the successful experience of developed countries has proved that leasing is the most effective way to solve these needs. The huge demand of the future market is the best time for the development of the leasing business.
Baidu Encyclopedia - Financial Leasing Company