Recent models for financial leasing companies to securitise assets

Lease financing, a modern transaction method combining financing and asset financing, trade and technical services together, has become a new sector and important component of the modern service industry. It is of great significance to effectively expanding investment, production and consumption in relevant industries, supporting the financing of small and medium-sized enterprises, assisting enterprises in developing foreign markets, and driving the development of modern services.

Development and current status

Lease financing developed in three stages in China. It initially arose during the early years of reform and opening to the outside world, rapidly developing in the country as a new transaction method, and made outstanding contributions to China’s attraction of foreign investment, including the introduction of advanced foreign equipment and support of the technical transformation of domestic enterprises. The second stage ran from the end of the 1980s to the beginning of the new millennium. During this period, the theme of the development of lease financing in China was compliant management. With a stream of laws and regulations issued, industry development continuously improved and lease financing companies underwent a shakeout and consolidation.

The third stage ran from the beginning of the 21st century to the present, with the industry slowly recovering its vitality, gradually giving rise to a new financial industry that has financing as its objective, asset financing as its means and integrating credit, trade and technical upgrade.