Clifford Chance
China updates: CBRC financial leasing companies permitted to set up specialised subsidiaries and State Council's circular on encouraging the development of the leasing industry
9 October 2014
On 28 July 2014, the China Banking Regulatory Commission ("CBRC") issued the Interim Provisions on the Administration of Specialised Subsidiaries of Financial Leasing Companies (the “Interim Provisions”) which, for the first time, officially set out the legal basis for CBRC financial leasing companies ("CBRC FLCs") to establish onshore or offshore subsidiaries specialised in particular industries such as aviation and shipping ("Specialised Subsidiaries"). These provisions also supplement the Measures for the Administration of Financial Leasing Companies issued by CBRC earlier this year.
On 6 August 2014, the State Council issued the Guidance on Accelerating the Development of Productive Services Industry and Promoting the Restructuring and Upgrading of Industrial Structure (the "Guidance") which emphasised the need for the development of a healthy financial leasing industry.
