Chinese Minsheng Bank establishes leasing subsidiary

Following the easing of leasing restrictions on Chinese banks by
China’s regulatory authorities in February this year, China
Minsheng Banking has just received approval from the banking
regulator to establish a financial leasing subsidiary in
Tianjin. 

Minsheng Financial and Leasing Co Ltd. will be operating in
foreign currency-dominated leasing business, such as offering term
deposits, transferring leasing receivables to commercial banks and
issuing financial bonds upon approval.

Minsheng Bank aims to build the new leasing company with two
other domestic partners and a registered capital of US$533m
(£262m), but Minsheng itself contribute half of the capital to have
a 51% per cent stake. This plan should be completed in the next six
months.
Listed on the Shanghai Stock Exchange, Minsheng Bank achieved net
profits of CNY 2.82 billion in the first half of 2007, up 65.81%
year on year.
Minsheng follows in the footsteps of the Industrial and Commercial
Bank of China (ICBC), which last month was also approved to
establish a US$266m (£133m) financial leasing firm in Tianjin.