Finance Leases In The Construction Enterprises: For Example, The X-bureau Group Of China Railway

Financial leasing Using the Construction Enterprises -Following China Railway * Group ExampleThis paper newly defines the concept and character of financial leasing, reviews its history in China and world, analyses the possible risk and measures to decrease risk on the position of leaseholder following construction enterprises, which provides the theory basic for further studying financial leasing in the future.This paper deeply analyses operating mechanism, the model and process for decision-making among own money, bank loan and decision-making following China Railway * Group Example. It discusses the selection of lessor, equipment , manufacturer and the measures keeping from risk, which not only helps China Railway * Group to increase the equipments who are needed by financial leasing ,but also provides the enterprises new financing channels who are short of capital.The innovations:1.the innovation in theory analyzing angle: the former researches emphasize particularly on governmental management in financial leasing and lessor inner management, but this paper focus on leaseholder, which opens new researchful angle and emphasises.2. the expansion of research object meaning :the former researches exclude Trust Investment Companies, Financial Companies from lessors, however this paper include them.3. building up avoiding-risk system with system theory: the former researches emphasize on leasing equipment and, manufacturer, pay less attention to leaseholder inner management, whereas this paper considers the leasing risk as a whole, which makes for leaseholder to control risks reasonably.The content of the paper:This paper sets forth in four parts.Part one defines the concept of financial leasing, reviews its development history, classifies financial leasing according to different points of view, analyses its characters. Then it discusses the unique advantages of construction enterprise's financial leasing on the condition of raising money system.Part two analyses the operation mechanism of construction enterprise's financial leasing. There are three sections. First, it introduces the methods of financial leasing in common use; Second, it is divided into five basic steps of the financial leasing to introduce, Third, it analyses the factors of affecting rents .calculation ways of the rents and payments again.Part three analyses the risk and the measures to avoid the risk which the construction enterprises face in the financial leasing from three angles .The first point of view is from the choice of leasing equipment and manufacturers, the second is from the choice of lessor , the third is construction enterprises inner risks and measures.Part four is the case analysis about financial leasing of Shield in the Huangzhuang projection, which is the key point .It involves five segments ,the first segment is analyzing the contrast of financing cost in different ways, the second bring forwards six kinds of enterprises that operate financial leasing business legally, the third segment makes choice of various manufacturers based on bases , principles, technology standards made by Shield selecting team of China Railway * Group. The fourth segment discusses the measures to avoid risks.Finally it draw a conclusion from this case.