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The catalogue has removed foreign-invested financial leasing companies from the category of limited investment to that of allowed investment.
Financial leasing is called cardiac stimulant during economic recession. In the background of global economic recession and tightened money supply in various countries, bank credit has been unable to satisfy the demand of engineering enterprises, therefore financial leasing has become a big source of funds.
Yang Haitian, Editor in Chief of the Blue Book of China's Leasing Industry, said in many countries, financial leasing is the second largest financing source after bank credit. In China, financial leasing is still in its infancy.
After China entered the WTO, foreign-invested leasing started development in China, but its growth has been restricted with high requirements on access and business operations. In 2005 China issued Management Measures of Foreign-Invested Financial Leasing Companies. Some Chinese banks and companies also began to enter the financial leasing industry. In 2007, China promulgated Management Measures of Financial Leasing Companies, which covered domestically invested companies.
According to the Blue Book of China's Leasing Industry, by now there are more than 280 financial leasing companies in China, including 20 bank-invested ones, 60 manufacturer-invested ones and 200 independent ones. Among them, 66 are domestically invested and more than 200 are foreign invested. However, bank-invested financial leasing companies, all domestically invested, occupy more than 60 percent of the domestic market share, and foreign-invested financial leasing companies have not fully released their strength in China.
Yang said removing financial leasing from the category of limited investment to that of allowed investment will help promote the development of China's financial leasing industry, expand financing channels and alleviate the industry's bottleneck of capital shortages.
Newly Added Encouraged Investment Items
- High-end manufacturing industries: new products and new technologies in textile, chemical and mechanic manufacturing industries; and recycling and disposal of waste electric and electronic products, machinery equipment and cells.
- Strategic emerging industries: key components of new energy automobiles and next-generation Internet system equipment based on IPv6.
- Modern service industries: electric vehicle charging stations, venture capitals, intellectual property right services, cleaning technologies of marine oil pollution and professional skill training.
- Non-regular oil and gas: foreign-invested exploration and development of non-regular oil and gas resources such as oil shale, oil sand, heavy oil, extra-heavy oil, shale gas and seabed natural gas hydrate (only joint venture and Chinese-foreign cooperative ventures).
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