Private capital considered for financial leasing sector

Private capital may soon be admitted to the financial leasing sector, according to a draft of guidelines released by the China Banking Regulatory Commission.

The draft, which is open to public feedback, will allow organizations other than commercial banks to establish financial leasing companies.

Foreign commercial banks, domestic manufacturers, foreign financial leasing companies, and other foreign financial institutions, could initiate financial leasing companies.

The largest investor will no longer be required to account for 50 percent of total investment.

However, there should be at least one commercial bank, manufacturer or foreign financial leasing company among the initiators with no less than 30 percent investment to strengthen risk control, said the press release of China Banking Regulatory Commission.