Financial leasing companies urged to develop key industries

Financial leasing companies in China are urged to explore new business models to better support the development of key industries and sectors including large aircraft and integrated circuit equipment, according to a circular issued by the National Financial Regulatory Administration on Friday.

The key industries and sectors mentioned in the circular also include large equipment, new energy ships, first equipment and major technical equipment.

The NFRA said that the financial leasing industry is expected to play a better role in serving the transformation and upgrading of traditional industries, as well as the development of strategic, emerging and new industries and advanced-manufacturing industry.

It is also expected to better help small and micro-sized enterprises and agricultural enterprises to improve financing with equipment assets and promote innovation and upgrades in those sectors.

An official with the NFRA said that as of the end of June, financial leasing companies' assets of various aircraft and related equipment amounted to 385.26 billion yuan ($52.64 billion).

They have also signed orders for 174 homegrown regional passenger jet ARJ21 aircraft and 455 C919 aircraft, respectively. C919 is China first self-developed single-aisle aircraft.

Among that, 48 ARJ21 aircraft have been delivered, making financial leasing companies the largest customer for domestic civil aircraft, the official said.

The official also said that the financial leasing industry has supported domestic shipyards to build 268 new ships in the past three years, which have combined total worth of 59.8 billion yuan.

As of the end of June, the industry holds 1,634 ships, with a total asset value of approximately 350 billion yuan, strongly supporting China to become the world's top ship-owning country.

Apart from urging financial leasing companies to better support strategic sectors and the real economy, the circular also asked the financial leasing industry to improve corporate governance, strengthen internal control and compliance management, strictly regulate leasing business, enhance financial leasing business structure and strengthen rental property value assessment management among others.

liuzhihua@chinadaily.com.cn