BEIJING, Dec. 16 (Xinhua) -- China's top banking regulator announced on Monday that it will give the market easier access to financial leasing companies by revising regulations.
Financial leasing companies will be allowed to expand business and set up trial subsidiaries, according to a statement from the China Banking Regulatory Commission (CBRC).
According to the revised regulations, qualified Chinese and foreign commercial banks, domestic manufacturing enterprises and other legal entities, as well as overseas financial leasing companies and other financial institutions, will become eligible to set up financial leasing businesses.
"These revisions will attract more social capital to financial leasing, which can diversify a leasing company's investors and create more effective management," said Li Jianhua, deputy director of the Non-bank Financial Insititutions Supervision Department of the CBRC.
CBRC will implement classification management of financial leasing companies and provide more freedom to qualified players, including asset securitization and bond issuance. These companies are encouraged to cover the leasing business of aircraft and ships.
The CBRC has also drawn up rules concerning the establishment of subsidiaries.
CBRC data show that as of the end of the first quarter this year, the assets of 20 financial leasing companies under the supervision of the CBRC totaled 840 billion yuan (137.4 billion U.S. dollars). Their profits last year exceeded 10 billion yuan.
The CBRC will also solicit public opinion regarding the revision until Jan. 16, 2014.