The Dream Factory of China

Foreign-owned financial leasing enterprises now can easily register their subsidiary companies in Qianhai Shekou Pilot Free Trade Zone without fearing the threshold of registration capital.

According to a framework document that was released recently by Guangdong government, there will be is no minimum registered capital requirement for the subsidiary companies of foreign invested financial leases. Also, foreign currency rental payment will be acceptable if over 50 percent of the leasehold cost is paid by foreign exchange loans or external debts.

Those who lease import goods such as airplanes and ships can have quicker payment procedure as well. When leasers obtain import quotas for lease and verified certificates no additional requirements will be asked.

The new regulation prioritizes the collaborations between industries and financing.

The government expects more cooperation between the leases and pillar industries varying from automobile and aircraft producers to intelligent manufacturing and new energy suppliers. The domestic constructions, such as on transit, hydroelectricity and sewage treatment, are open for collaboration as well. The new-energy vehicle production and supplementary facilities for public transit services are highly encouraged.

The regulation encourages the leases to tap into cultural industry and consumer-driven economy. Expanding lease holds to biological assets including forests and agricultural products is also possible.

Luo Jun, the secretary-general of Guangzhou Financing Lease Industry Alliance, said that leasing biological assets is not a new idea.

Regarding real estates, he also emphasized the role of financial leasing in de-stocking property inventory.

Ahead of the new policy, last year, the Qianhai Authority set up a financial lease department which engages to policy studying, attracting investment and company services. Guo Yuqiang, the head of the department, said the new policy creates a favorable environment for the development of financial leases.