Core Viewpoint - The newly released "Management Measures for Financing Lease Business of Financial Leasing Companies" aims to standardize the financing lease industry in China, emphasizing a return to the core business of "financing" and "leasing goods" [2][3] Policy Background - The financial leasing industry plays a crucial role in connecting finance with the real economy, supporting equipment upgrades and industrial transformation. However, some companies have deviated from their core business, leading to risks such as inadequate due diligence and poor asset management [3] - The central financial work conference has called for high-quality financial services for economic development, and the new measures respond to the dual needs of industry transformation and risk control [3] Policy Content Analysis - The measures focus on "leasing goods," emphasizing their management as a core standard for distinguishing financing leases from ordinary credit [5] - A standardized operational framework is established, detailing every step from due diligence to post-lease management, with specific requirements for different types of leases [6][7] - Risk management is embedded throughout the business process, with a focus on operational risk control, employee behavior management, and proactive risk response [8] Expected Effects of Policy Implementation - The implementation of the measures is expected to reshape industry competition, favoring companies with strong industrial backgrounds and robust risk management systems [9] - By enhancing the management of leasing goods and preventing fund misuse, the measures aim to sever the transmission of risks from leasing to credit, thereby improving the overall stability of the financial leasing sector [10] - Financial leasing companies that focus on leasing goods will be better positioned to serve the real economy, providing tailored financial solutions for technology-driven enterprises [11] Implementation Outlook and Challenges - The measures signify the end of the "wild growth" era in the financial leasing industry, ushering in a period of meticulous management [12] - Challenges include the need for companies to rebuild talent and knowledge systems, address existing issues in current contracts, and rebalance profit models towards more sophisticated asset management [12]

Core Viewpoint - The newly released "Management Measures for Financing Lease Business of Financial Leasing Companies" by the Financial Regulatory Bureau signifies a new recognition and emphasis on the regulation of financing lease businesses in China, aiming to guide financial leasing companies to focus on their core mission of financing new equipment assets and continuously serve the real economy [2][6] Group 1: Regulatory Framework - The new regulation consists of 8 chapters and 68 articles, covering the entire process of financing lease business, including due diligence, risk assessment, contract execution, post-lease management, and risk management [2][3] - The regulation establishes a comprehensive and differentiated regulatory system to address prominent issues in the industry, such as inflated valuations and the existence of non-existent leasing assets [2][4] Group 2: Due Diligence and Risk Management - Effective management of leased assets is emphasized throughout all business stages, requiring financial leasing companies to thoroughly verify the suitability, ownership, value, and physical condition of leased assets during the due diligence phase [3][4] - The regulation mandates differentiated management requirements for various business models, including direct leasing and sale-leaseback, to effectively address the unique risk characteristics of each model [4][5] Group 3: Internal Control and Risk Prevention - Risk management and internal control are elevated to a critical position, with specific requirements for credit risk, concentration risk, operational risk, and related party transaction risk [5][6] - The regulation aims to enhance the internal audit and incentive mechanisms of financial leasing companies, thereby constructing a comprehensive risk prevention system [5][6] Group 4: Industry Development and Future Outlook - The regulation is a key step in the continuous improvement of the regulatory framework for the financial leasing industry, filling the regulatory gaps in business operations [5][6] - The timely introduction of the new rules addresses long-standing contradictions in the industry, aiming to constrain market chaos and fill the financing gap for new equipment assets [7]

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].