As assets under financial lease grow rapidly in size, it becomes imperative to eliminate bottlenecks in financing and increase asset liquidity in the financial lease sector.
It was against this background that 2014 Chia Financial Lease Assets Securitization Summit was held in Beijing, which was co-hosted by Dacheng and GF Securities Asset Management (Guangdong) Co., Ltd.. The summit attracted more than 160 executives and experts from established financial lease companies, foreign-owned financial lease businesses and pilot domestic-funded lease companies. Participants had in-depth discussions on issues such as transaction models, legal risks, accounting and taxation in connection with the securitization of assets under financial lease. Zhang Wei, director of GF Securities Asset Management Co., Ltd., Xing Zaozhong, head of Financial News, and Qu Yankai, an expert in the sector, addressed the summit.
Senior partner Kuang Shuangli figured out six noteworthy issues surrounding the securitization of leased assets in a speech, i.e., types of underlying assets, legal hurdles on rental and patent transfer, VAT and structure of the asset pool, true sale and bankruptcy remote, legal forms of SPV, transfer of security interest and credit enhancement. Addressing systemically these issues, Kuang believed, would do much good to the securitization of assets under financial lease in China.
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