China to approve 10 more financial leasing companies over next two years

The China Banking Regulatory Commission (CBRC) has said it will approve 10 more banks to set up financial leasing companies within the next two years. Shanghai Securities News cited a senior official at the CBRC, saying that the financial leasing companies will be set up to help finance SME companies. Chen Oiong, deputy director of the non-banking regulatory department at the CBRC said that since Beijing revised regulations in 2007, six Chinese lenders, including Industrial & Commercial Bank of China and China Construction Bank Corporation have launched financial leasing firms.

The China Banking Regulatory Commission (CBRC) has said it will
approve 10 more banks to set up financial leasing companies within
the next two years.

Shanghai Securities News cited a senior official at the
CBRC, saying that the financial leasing companies will be set up to
help finance SME companies.

Chen Oiong, deputy director of the non-banking regulatory
department at the CBRC said that since Beijing revised regulations
in 2007, six Chinese lenders, including Industrial & Commercial
Bank of China and China Construction Bank Corporation have launched
financial leasing firms.

China’s 12 financial leasing companies posted combined assets of
¥94.8 billion (€10 billion) at the end of May. According to the
CBRC’s report, companies focused mainly on machinery equipment,
airplanes, power equipment and shipping.

Jason T Hesse