Finance Leasing with Chinese Characteristics
July 02, 2007 | BY
clpstaff &clp articlesThe China Bank Regulatory Commission is reviewing applications by five commercial banks to establish finance leasing companies. How will this new business vehicle impact the Chinese finance leasing landscape?
By Jean-Marc Deschandol and Charles Desmeules of Norton Rose, Beijing
There are currently two parallel regimes governing foreign direct investment in the PRC finance leasing industry: finance leasing companies established with the approval of the China Banking Regulatory Commission (CBRC) [金融租赁公司, Financial Institution FLCs], pursuant to the Measures for the Administration of Lease Financing Companies (CBRC Measures) and foreign-invested finance leasing companies established with Ministry of Commerce [MOFCOM] approval [融资租赁公司, MOFCOM FLCs]. This Article compares Financial Institution FLCs and MOFCOM FLCs [collectively referred to as FLCs], and provides an overview of the impact that forthcoming legal changes may have on the operations of FLCs.
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