Core Viewpoint - The recent issuance of the "Management Measures for Financial Leasing Companies' Financing Leasing Business" aims to systematically and finely regulate the financing leasing business, enhancing risk management and promoting a return to the core leasing business for financial leasing companies [1][2]. Group 1: Regulatory Framework - The new regulations consist of 8 chapters and 68 articles, covering the entire process of financing leasing business, including due diligence, contract execution, and risk management [1]. - The measures are designed to standardize the operations of financial leasing companies, improve service quality, and enhance risk management capabilities [2]. Group 2: Business Transformation - Financial leasing companies are increasingly focusing on direct leasing, with direct leasing assets reaching 640.54 billion yuan, a year-on-year increase of 52.73% [3]. - The industry is experiencing a significant polarization in business scale and direct leasing ratios, with larger firms dominating the market [2][3]. Group 3: Risk Management - The new regulations emphasize the importance of accurately determining the value of leased assets and prohibit practices such as overvaluation [3]. - Financial leasing companies are required to strengthen operational management of leased assets, including regular value reassessments and impairment testing [4]. Group 4: Industry Trends - The number of financial leasing companies has decreased due to mergers, bankruptcies, and license revocations, with 15 companies having total assets exceeding 100 billion yuan [5]. - The regulatory environment is pushing for a reduction in non-equipment-related sale-and-leaseback transactions, aiming for a 15% decrease in their proportion by 2024 [6]. Group 5: Future Outlook - The regulatory changes are expected to lead to a more stable and orderly industry, with weaker companies facing pressure to exit the market [7]. - Overall, the credit risk within the financial leasing industry is considered manageable, with expectations for improved operational quality as companies adapt to the new regulations [7].