Development Status of Domestic Construction Machinery Equipment Leasing Industry

For a long time, the existing mechanical equipment at construction sites has belonged to construction enterprises, with the purpose of serving the construction of the enterprise itself, which has led to the situation of low utilization rate of mechanical equipment and poor investment effect. At the same time, the mechanical equipment purchased by various enterprises are almost similar, with serious repeated investment, resulting in serious backlog of social assets. Serious aging of mechanical equipment and a large amount of idle equipment have become a heavy burden on construction enterprises, restricting the development and progress of mechanical equipment. After the establishment of the socialist market economic system, it is necessary to emphasize the investment benefit of equipment. To socialize construction machinery, it is necessary to establish a social leasing market for mechanical equipment as soon as possible, so as to activate the fixed assets of mechanical equipment, reflect the investment effect, improve the utilization rate of mechanical equipment, and achieve the purpose of mechanical upgrading. Establishing a social leasing market for mechanical equipment can improve the level of management, use, repair and maintenance of mechanical equipment, which is conducive to reducing consumption and saving human, material and financial resources; it is conducive to carrying out technical training and international exchanges, and improving one's own quality.    

  However, due to the influence of many factors, the development of the mechanical equipment leasing industry has been severely restricted.

 ⑴ There is a lack of a unified competent department for the macro-management of the leasing industry.

  At present, the leasing industry is regulated by the Ministry of Foreign Trade and Economic Cooperation, the People's Bank of China, the State Administration of Foreign Exchange, the State Administration for Industry and Commerce and other departments. The power is scattered and the responsibilities are unclear, which easily leads to friction and mutual prevarication, making it difficult to coordinate and unify policies, and leaving China's leasing industry management in a nominal "vacuum zone". On the contrary, China's leasing industry still does not have a leasing industry association that is closely connected with the competent government departments, which coordinates, guides, communicates and serves the business management and information of leasing companies.

 ⑵ There is a lack of leasing laws and regulations to protect the normal development of the leasing industry, leaving the leasing industry in an environment of "no laws to follow and no rules to abide by" for a long time.

  At present, China does not have a systematic and complete leasing law aimed at protecting the legitimate rights and interests of leasing parties. There are only some simple provisions in the Economic Contract Law, the General Principles of the Civil Law, relevant documents of the Ministry of Finance and the interim measures for financial leasing formulated by professional banks on their own, which are far from meeting the actual needs of the leasing industry. The leasing industry has no laws to follow, the parties to the leasing contract have no unified code of conduct, and the legitimate rights and interests of the leasing contract are difficult to be effectively protected. In project bidding and credit investigation, the legality of the leasing industry has not been protected, which has seriously hindered the normal operation and healthy development of China's leasing industry.

  ⑶ There is a lack of fiscal and taxation policies to support the development of the leasing industry.

  Foreign countries mostly implement preferential fiscal and taxation policies to support the development of leasing business. In China, leasing financing has long been regarded as loans, and it is treated as a general commercial act in taxation. Generally, banks do not accept mortgage loans and bank credit guarantees for the leasing industry, and the insurance industry does not participate in the insurance work of the leasing industry, which has become an obstacle to the normal development of the leasing market.

  ⑷ At present, the types of leasing business are relatively single, basically limited to general import financial leasing and part-time physical leasing.

  In financial leasing, businesses such as leaseback and export leasing have hardly been carried out. In physical leasing business, lease-to-own business is rarely carried out. There are many reasons for the single form of leasing, including the constraints of the state-owned assets management system, the mismatch of seller credit and credit insurance, the credibility of leasing intermediaries and the fear of risks in the state-owned economy. The most obvious is that the phenomenon that manufacturers only sell instead of lease has a clear gap with similar foreign enterprises. These reasons have constrained the diversified development of China's leasing forms.

  ⑸ Rent arrears are very serious, leading to capital turnover difficulties for leasing companies.

  According to relevant data, by the end of 1994, 17 Sino-foreign joint venture leasing companies had rent arrears amounting to 600 million US dollars. Huge rent arrears have pushed various leasing companies into serious operational difficulties. With the establishment and gradual improvement of China's market economic system, it is believed that as an emerging industry, China's leasing industry will surely shoulder its historical responsibility and continue to develop and grow.