Leasing industry under the epidemic situation: 106 cases involving default in bond market

category:Finance
 Leasing industry under the epidemic situation: 106 cases involving default in bond market


Many leasing companies are involved in the default events in the bond market this year.

Industry insiders believe that although the above involved funds are the contract amount when the project is undertaken, it can still be seen from the side that the leasing companys leased assets are facing a more severe situation.

In recent years, there are more and more default bonds in recent years. According to incomplete statistics, 190 bonds default in 2019, and the balance of default bonds is 128 billion yuan, which is a large increase compared with the previous year. From January to June 2020, there are 57 default bonds, and the balance of default bonds is 56.1 billion yuan.

A senior leasing industry official told the first finance and economics reporter that under the current credit environment, some urban investment enterprises are favored by many leasing companies. Leasing companies began to eat urban investment enterprises, among which financial leasing companies have greater advantages because of the low cost of capital obtained from parent bank, peers and financial bonds.

However, Zhang Yunpeng, senior deputy director of cicci international financial institutions department, said that as an important part of the asset investment direction of leasing companies, the credit risk of such assets has increased year by year in recent years, and there have been non-standard defaults of urban investment enterprises. In spite of the fact that most of the default enterprises still realize the current situation of non liquidity investment.

Market clearing has arrived

In recent years, the business growth rate of leasing companies has continued to decline. In the first quarter of 2020, affected by epidemic factors, the business launch was greatly affected, resulting in a negative growth in the balance of financial leasing business.

Moreover, the new business of some leasing companies is becoming more and more difficult. According to the data of China integrity international, since 2018, the proportion of financial leasing companies with reduced balance sheet has gradually increased. Among the 60 financial leasing companies with debt issuance history available from market data, the proportion of financial leasing companies with reduced assets has increased from 7% at the end of 2017 to 41% at the end of March 2020. Among them, the low credit rating (AA and below) financial leasing companies are particularly obvious.

However, high credit rating financial leasing companies are less affected by the adverse environment. As of the end of 2019 and the end of March 2020, 13% and 21% of high credit rating bond issuing financial leasing companies had reduced their balance sheets compared with the beginning of the year. The asset growth of high credit rating bond issuing financial leasing companies also shows a trend of slowing down. Taking the top 10 financial leasing companies with leasing assets as an example, the growth rate of their total assets is 8% in 2019, which is significantly lower than that of 23% in 2018.

Net profit can reflect the return rate, impairment and the increase of capital cost of leased assets. For high credit level financial leasing companies, due to their strong comprehensive strength, they are more recognized by the financing side, and the capital cost level is low. At the same time, high credit financial leasing companies often have more mature risk control system. Therefore, after adjustment in 2018, the negative profit growth of such companies in 2019 has improved, and only 28% of the companies have negative growth. China integrity international financial institutions senior director Xue Tianyu said.

The data shows that in 2019, 61% of the sample financial leasing companies with low credit rating have negative growth in net profit, which is significantly higher than that in previous years. Therefore, the overall profit level of low credit rating financial leasing companies is getting worse year by year. In particular, 10% of the low credit rating sample financial leasing companies suffered losses in 2019, and most of the small and medium-sized leasing companies are in a difficult situation.

With the obvious aggravation of the differentiation of financial leasing industry, the market clearing situation has come. For example, Rongxin leasing, which is listed on the new third board, has a negative net profit in 2019 and a net asset of - 39 million yuan. It plans to apply to the court for bankruptcy liquidation due to its major loss in operation. In addition to Rongxin leasing, according to public information, there are financial leasing companies with a net loss of more than 1 billion yuan in 2019. These companies are due to a large number of overdue projects, due to the large amount of impairment caused by large losses, are now facing the situation of insolvency. Market clearing, strong regulation may become a booster. In June, the CBRC said that there were a large number of empty shell and lost connection enterprises in the financial leasing industry. About 72% of the financial leasing companies were in the state of empty shell and business suspension, and some companies operation deviated from the main business. The cbcirc is promoting the reduction and quality improvement of the industry through classified disposal: according to the operation risks and illegal situations, the financial leasing companies are divided into three categories: normal operation, abnormal operation and illegal operation; the identification standards of the three types of companies are specified, and the classified disposal measures are refined; in the absence of administrative permission, the local financial supervision department and the market supervision department are required We will establish a consultation mechanism to strictly control the registration of financial leasing companies and their branches. Source of this article: Guo Chenqi, editor in charge of first finance and Economics_ NBJ9931

With the obvious aggravation of the differentiation of financial leasing industry, the market clearing situation has come. For example, Rongxin leasing, which is listed on the new third board, has a negative net profit in 2019 and a net asset of - 39 million yuan. It plans to apply to the court for bankruptcy liquidation due to its major loss in operation. In addition to Rongxin leasing, according to public information, there are financial leasing companies with a net loss of more than 1 billion yuan in 2019. These companies are due to a large number of overdue projects, due to the large amount of impairment caused by large losses, are now facing the situation of insolvency.

Market clearing, strong regulation may become a booster. In June, the CBRC said that there were a large number of empty shell and lost connection enterprises in the financial leasing industry. About 72% of the financial leasing companies were in the state of empty shell and business suspension, and some companies operation deviated from the main business. The cbcirc is promoting the reduction and quality improvement of the industry through classified disposal: according to the operation risks and illegal situations, the financial leasing companies are divided into three categories: normal operation, abnormal operation and illegal operation; the identification standards of the three types of companies are specified, and the classified disposal measures are refined; in the absence of administrative permission, the local financial supervision department and the market supervision department are required We will establish a consultation mechanism to strictly control the registration of financial leasing companies and their branches.