The rule is also seen as the implementation of one of China's banking commitments to the World Trade Organization.

China opened its banking industry at the end of 2006. Foreign-funded banks have been able to deal in the renminbi retail business across the country since December 11.

"The old financial leasing rule was no longer in line with the opening banking industry. The new circumstances prompted the CBRC to revise the rule and it got primary approval from the State Council," the regulator said in a statement on its website.

The CBRC yesterday also released its revised rule on China's trust corporations aimed at boosting the industry and better protecting investors' interests.

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