Clifford Chance
Latest CBRC rules encourage development of financial leasing companies
25 April 2014
The China Banking Regulatory Commission (CBRC) promulgated a new set of Administrative Measures on Financial Leasing Companies on 13 March 2014 to replace the old version. The new measures aim to encourage investment in CBRC regulated financial leasing companies, expand their business scope and service network in China, cultivate specialisation of leasing products and at the same time maintain the stability of these companies. This briefing studies the key changes introduced by the new measures, including allowing a more diversified pool of eligible promoters in the formation of a financial leasing company, as well as the possibility for such a company to establish subsidiaries in China. It is clear that the new measures demonstrate the Chinese regulator's continuous efforts to promote the financial leasing industry.
