Research On Risk Identification And Prevention And Control Of China’s Financial Leasing Green Assets Support Special Plan

There are many financial leasing companies in China,and the industry is highly competitive.Under the background of economic pressure and the tightening of regulatory policies,the problems accumulated in the industry over a long period of time have begun to emerge gradually,and many financial leasing companies have entered the stage of transformation and optimization.The report of the 20 th Party Congress points out that it is necessary to promote green development,accelerate the green transformation of industries,and steadily promote carbon peaking and carbon neutrality.Encouraged by the national policy,financial leasing companies have started to lay out the green industry.With its own advantages,asset securitization has well solved the problems of low credit of the main body,large investment capital in green industry and long recovery time,helping finance leasing companies to realize green transformation and upgrading.Nowadays,asset securitization has become the second largest source of funds for financing leasing companies.However,it is worth noting that in the history of China,there have been many cases of default of enterprise asset securitization products,and there have been many cases of rating downgrades of special plans backed by financial leasing assets,and some of the products are close to default.Therefore,in the critical period of green industry layout of financial leasing companies,the prevention and control of the potential risks of the financial leasing green asset-backed special plan is particularly important.In this regard,this paper selects the "SL 2021-3" Green Asset-Backed Special Plan issued by SL Financial Leasing Company as the case study object.This product,as the first green asset backed securitization product with "dual carbon neutral underlying assets and uses" on the Shanghai Stock Exchange,is representative of the transformation of the financial leasing industry and the layout of the green industry,and has a significant demonstration and guiding significance for other financial leasing companies to issue green asset backed special plans in the future.This paper uses the flowchart method to divide the process from product design to operation into three stages: the composition of the underlying asset pool,the design of the transaction structure and the survival stage,and identifies and analyzes the potential risks in each stage.Taking into account the current situation of the financial leasing industry,it proposes key risk prevention and control suggestions for each stage of the special plan for green asset support of financial leasing.The analysis found that the "SL 2021-3" Green Asset-Backed Special Plan has problems in the construction of the underlying asset pool,such as single type of leases corresponding to the underlying assets,concentration of regions and imperfect information disclosure,which may give rise to credit risk of the underlying assets,credit risk of the original equity holders and due diligence risk of the third-party participating institutions.At the stage of transaction structure design,there are problems such as the decline of implied rating in the Chinese debt market and the inability to achieve bankruptcy segregation,which may give rise to credit rating risk and bankruptcy segregation risk.In the product survival stage,analysis using the Z-Score model reveals issues such as the unstable financial position of the poor payment commitment holder,the guarantor’s need for continuous attention in terms of capital requirements,centralized payment pressure and the scale of external guarantees,which may give rise to poor payment commitment holder performance risk,guarantor performance risk,etc.In order to better grasp the risks of the product as a whole,and to sequentially and focus on the prevention and control of risks at different stages,this paper uses hierarchical analysis and fuzzy comprehensive evaluation method to explore the importance of risks at different stages and grasp the overall risk situation of the product.It is found that the risks arising from the construction stage of the underlying asset pool need more attention than the risks arising from the other two stages,and the importance of the risks in the transaction structure design stage and the survival stage are relatively similar.The credit risk of the underlying assets,credit rating risk,due diligence risk of the third-party participating institutions,credit risk of the original equity holders,performance risk of the poor payment guarantors and performance risk of the guarantors appear to be more important than other risks.Based on the above analysis,the key risks of each stage of the special plan for green asset backing of financial leasing are proposed for risk prevention and control according to the importance of risks,taking into account the overview of China’s financial leasing industry and the risk events of asset securitization products.In the stage of underlying asset pool construction,as the most important part to be concerned about,the types of underlying assets should be enriched and the underlying assets should be reasonably allocated,while the information disclosure of underlying assets should be improved and due diligence should be enhanced;in the stage of transaction structure design,dual rating certification or investorpaid rating model should be encouraged;in the stage of product survival,the professional operation and risk management ability of leasing companies should be improved,and external credit enhancement should be selected from the leasing companies with better debt servicing ability and risk resistance.The external credit enhancement should choose a guarantor with good debt servicing capacity and risk resistance.