Without the approval of China Banking Regulatory Commission, no unit or individual may engage in financial leasing business or use the word "financial leasing" in its name, unless otherwise stipulated by laws and regulations.
Leasing business includes two categories, one is physical leasing company and the other is financial leasing company. The main difference between the two is that the former ultimately only transfers the right to use, while the latter ultimately transfers the ownership.
Therefore, the financial leasing company is actually a financial institution. Unlike banks, banks lend money to enterprises, which use it to buy equipment, paying interest first and then repaying the principal. Financial leasing companies purchase equipment first, and then lease the equipment to enterprises. The enterprise pays the lease fee, for example, five years. The sum of the five-year lease fee is equal to the fund plus interest.
Extended data:
Development of China Financial Leasing Company
origin
The financial leasing industry in China originated in April of 198 1. The earliest leasing companies appeared in the form of Sino-foreign joint ventures, and the initial motivation was to introduce foreign capital. From July, the first Chinese-funded non-bank financial institution "China Leasing Co., Ltd." 198 1 to June 1997, there were 16 financial leasing companies approved by the former People's Bank of China.
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) successively withdrew from the market. At present, there are 18 financial leasing companies operating normally after capital increase and share expansion, mainly engaged in public transportation, urban construction, medical care, aviation, IT and other industries.
develop
Financial leasing is an effective mechanism for resource transfer and capital form transformation between different capital markets. Because of the incomparable advantages of other financing methods, financial leasing has been widely used in the world and its development speed is second to none. In the early 1980s, it was introduced to China as a product of reform and opening up. In the past 20 years, the leasing industry in China has made great progress, but due to various reasons.
Financial leasing companies generally have problems such as chaotic business scope, over-investment in high-risk areas, neglect of risk control and asset management. In addition, China's market economy system is not perfect, and the four pillars (law, supervision, accounting standards and taxation) of leasing industry development do not match, which leads to the deterioration of asset quality, serious payment difficulties and unsustainable normal operation of enterprises.
improve
With the continuous improvement of China's market economy system and the further development of China's capital market, laws, regulations, accounting standards and tax environment are playing an increasingly important role in supporting the leasing industry. According to the requirements of the 10th the National People's Congress Standing Committee (NPCSC) Legislative Plan,
The Financial and Economic Committee of the Tenth National People's Congress organized the Ministry of Commerce, the China Banking Regulatory Commission and other departments to fully investigate and study, extensively listened to the opinions of all parties, combined with the national conditions and learned from foreign experience, and made several drafts, forming the "People's Republic of China (PRC) Financial Leasing Law (Draft)" (the second draft for comments).
The legislation of financial leasing will promote the marketization of financial leasing industry, revitalize fixed assets, optimize the allocation of resources, meet the requirements of technological transformation of enterprises, improve the technical level of enterprises, promote the development of small and medium-sized enterprises and guide consumption.
The legislation of financial leasing will promote the rapid development of financial leasing industry, and give important policy support in accelerating depreciation, preparing for bad debts, paying turnover tax, paying customs duties, and sources of foreign exchange settlement funds. The macro-political environment is very conducive to the development of China leasing industry.
prospect
The next few decades will be a period when China's economic development will reach a higher level. The state will continue to invest heavily in energy, transportation and infrastructure. After decades of market-oriented operation and accumulation, China enterprises urgently need industrial renewal and technological transformation.
These will bring a lot of demand for complete sets of equipment, vehicles and special machinery, and the successful experience of developed countries proves that leasing is the most effective way to solve these needs. The huge market demand in the future is the best opportunity for the development of leasing business.
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