Accelerating the Development of the Financial Leasing Industry in Shanghai
Implementation Opinions of the General Office of Shanghai Municipal People's Government on Accelerating the Development of the Financial Leasing Industry in Shanghai
- Document Number：No. 32  of the General Office of Shanghai Municipal People's Government
- Area of Law： Foreign Economy and Trade
- Level of Authority： Local Regulatory Documents
- Date issued：08-15-2016
- Effective Date：09-01-2016
- Status： Effective
- Issuing Authority： People's Government of Shanghai Municipality
Implementation Opinions of
the General Office of Shanghai Municipal People's Government on Accelerating
the Development of the Financial Leasing Industry in Shanghai
(No. 32  of the General Office of Shanghai Municipal People's Government)
The people's governments of all districts and counties; and all commissions, offices, and bureaus of the Municipal Government:
For the purpose of further implementing the Guiding Opinions of the General Office of the State Council on Accelerating the Development of the Financial Leasing Industry (No. 68 , General Office of the State Council) and the Guiding Opinions of the General Office of the State Council on Promoting the Sound Development of the Financial Leasing (Financial Institutions) Sector (No. 69 , General Office of the State Council), and better making use of the role of the financial leasing in serving the real economy, the following implementation opinions in accelerating development the financial leasing (enterprises) and financial leasing (financial institutions) (unless otherwise specified, hereinafter uniformly referred to as "financial leasing") industries are hereby offered:
I. Development objectives
With the pilot program of the China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as "Pilot Free Trade Zone") as an opportunity, a system innovation system to support the sustainable and sound development of the financial leasing industry shall be established, a unified, regulated, effective industrial risk control and interim and ex-post supervision system shall be established, an effective policy support and service system shall be established, the service fields shall be constantly expanded, and the international competitiveness of the financial leasing industry in Shanghai and its contribution to the social and economic development of the entire city shall be improved. Efforts shall be made to realize by 2020 that the coverage of the financial leasing industry will constantly increase, the prevalence of the financial leasing market will be significantly raised, and the financial leasing assets will account for more than 30% of that in the country, making financial leasing an important means for enterprises to invest in equipment and upgrade technologies and an important constituent part of social investment and financing system.
(1) Vigorously fostering market participants and constantly expanding financial leasing service fields
i. Fostering and developing market participants. Capital from home and abroad shall be encouraged and guided in establishing financial leasing companies in Shanghai. Financial leasing companies with advantageous industrial backgrounds shall be encouraged to establish professional subsidiary companies. Financial leasing companies shall be encouraged to increase their sizes and expand business by merging, restructuring, increasing capital and expanding stock, and a group of enterprises leading the industry with core competitiveness shall be formed. Competitive financial leasing companies shall be supported in conducting cross-border lease and cross-border merger, and transnational financial leasing groups shall be fostered. The establishment of financial leasing intermediary service agencies shall be supported, and the development of the relevant industries of professional consultation, technical services, assessment and appraisal, assets management, assets disposition, etc. which provide supporting services to financial leasing enterprises shall be accelerated.
ii. Propelling the transformation and upgrade of the financial leasing service industry. Financial leasing companies shall be encouraged to vigorously serve the national strategies of "one belt, one road," "Yangtze River economic belt," "Made in China 2025," etc. Financial leasing companies in the traditional fields of aircraft, ship, engineering machinery, etc. shall be encouraged to become bigger and stronger, new investment and financing channels in the strategic emerging industries of new-generation information technology, high-end equipment manufacture, new energy, energy conservation, environmental protection, biology, etc. and the new fields of culture, etc. shall be vigorously expanded. Financial leasing companies shall be encouraged to participate in the construction of infrastructures such as public utilities, sewage and waste disposition, and environmental protection and control. The development of new-energy automobiles and their supporting facilities through financial leasing shall be encouraged in the fields of buses, taxis, vehicles for business use, etc. Financial leasing shall be encouraged in participating in the development of education, training, health, elderly support, leisure, tourism and other emerging service industries. The lease markets of residents' household final goods shall be vigorously, steadily and properly developed, and the financial leasing of family car, family information devices, durable final goods, etc. shall be developed, so as to expand domestic consumption.
iii. Supporting the development of micro, small and medium-sized enterprises. Financial leasing companies shall be supported in providing personalized and customized services to micro, small and medium-sized enterprises. The cooperation between financial leasing companies and startup hubs, science and technology enterprise incubators, public service platforms for small and medium-sized enterprises, all types of maker spaces, etc. shall be strengthened, the information communication between financial leasing companies and scientific and technological small and medium-sized enterprises shall be enhanced, the introduction of performance guarantee insurance products into the micro, small and medium-sized enterprises financial leasing services shall be supported, more support shall be given to the financial leasing of scientific and technological, innovative and startup micro, small and medium-sized enterprises through risk compensation backed by public financial funds, insurance premium subsidy, and other means, and the entrepreneurship and innovation among the people shall be promoted.
iv. Supporting cross-border leasing. The introduction of advanced foreign equipment through financial leasing shall be encouraged, and the import of high-end equipment shall be expanded, so as to raise the level of domestic technological equipment. Centered on the state "one belt, one road" strategy, port-surrounding equipment "heading overseas" demonstration bases shall be supported in promoting large equipment manufacturers in "heading overseas" to tap foreign markets by establishing financial leasing groups.
(2) Supporting the Pilot Free Trade Zone to conduct pilot programs, and promoting the gathering and development of the financial leasing industry
v. Effectively providing all supporting services. More support shall be continuously given to the financial leasing industry, and special funds shall be established to encourage and support financial leasing companies in conducting business operation, expanding assets size, enriching assets types, serving the real economy, and promoting and motivating economic development. The establishment of financial leasing service innovation bases shall be advanced, and the specialized services for financial leasing companies shall be enhanced, specialized third-party institutions shall be introduced to provide services in management consultation, industrial training, brokerage services, information statistics, government-enterprise communication, risk assessment, industrial early warning, etc. The development of financial leasing assets transaction service platforms shall be supported, the scope and size of lease transactions, and the mechanism for financially leased assets to exit shall be improved.
vi. Supporting the establishment of specialized subsidiaries and special project companies. Financial leasing companies which meet the prescribed conditions shall be supported in establishing specialized subsidiaries and special project companies to conduct leasing business of aircrafts, ships, major equipment, etc., and raise the level of specialization. Financial leasing companies shall be allowed to establish single aircraft, single ship and other special project companies by controlling interest. Single aircraft, single ship and other special project companies affiliated to a same parent company shall be allowed to do centralized registration of domicile, which shall be the same as that of the parent company. Financial leasing companies shall be allowed to establish subsidiaries specialized in aircrafts, ships, etc., and sustainably conduct programs of aircrafts, ships, etc.
vii. Supporting pilot Chinese-funded financial leasing enterprises in making use of foreign loans. The restraints on the right of import and export in foreign trade, ratio of net assets to total assets, earning performance, etc. in the qualification conditions for pilot Chinese-funded financial leasing enterprises to contract foreign loans shall be eased. Pilot Chinese-funded financial leasing enterprises shall, upon meeting necessary procedures and entering into loan contracts, handle the registration of foreign loan contract conclusion at the Shanghai Branch of the State Administration of Foreign Exchange, and the loans they contracted may be transferred into China, deposited at the special foreign loan accounts, and subject to exchange settlement upon payment or willingness exchange settlement.
viii. Supporting financial leasing companies in conducting cross-border RMB financing services. The financial leasing companies within the Pilot Free Trade Zone may, according to the Notice of the People's Bank of China on Implementing Macro Prudent Management of All-Standard Cross-Border Financing across the Country (No. 132 , PBC) and other provisions, handle the business of cross-border financing in domestic currency. Financial leasing companies shall be encouraged to conduct business by cross-border RMB settlement, overseas financing, and other means.
ix. Allowing financial leasing companies to conduct capital pool business in domestic and foreign currencies. Financial leasing companies shall be allowed, in accordance with the Notice of the State Administration of Foreign Exchange on Issuing the Provisions on the Centralized Operation and Management of Foreign Exchange Funds of Multinational Companies (No. 36 , State Administration of Foreign Exchange), to handle capital pool business in domestic and foreign currencies, and centralize the foreign loan and outbound lending quota of domestic member companies by opening major account of domestic and foreign exchange funds and international foreign exchange funds, to realize the unified assignment of funds at home and abroad. New modes of the administration of the transfer of funds at home and abroad shall be vigorously explored beyond the scope of the transfer of funds at home and abroad which is allowed by provisions in force, and on the premise of authentic trading and reasonability, the application for transfer of funds in foreign currency between financial leasing parent companies and special project companies within China shall be filed with the Shanghai Branch of the State Administration of Foreign Exchange.
x. Establishing green passages to facilitate customs clearance formalities. Customs clearance shall be sped up to facilitate financial leasing companies in developing lease import/export business. If the import/export of aircrafts, ships, oceanographic engineering structures, and other large equipment by the financial leasing companies registered in the areas under special customs supervision of the Pilot Free Trade Zone involves different customs regions, on the premise of ensuring effective supervision and carrying out relevant tax policies in force, according to actual logistics need, efforts shall be made to coordinate supervision at different locations to facilitate customs clearance formalities.
(3) Advancing in depth system innovation and improving the environment for the development of the financial leasing industry
xi. Advancing the simplification of administrative procedures and decentralization of powers. The administration mode shall be further transformed to simplify work flow and promote the coordinated development of all types of financial leasing companies. No minimum registered capital restraints shall be established for subsidiaries established by financial leasing companies, save financial institutions. The financial leasing companies, save financial institutions, in regions under the pilot program of commercial factoring shall be allowed to concurrently conduct commercial factoring business relating to financial leasing business.
xii. Simplifying the administration of qualifications in relevant industries. If imported leases involve the administration relating to quota, permit, automatic import licensing, etc., on the premise that the tenant has relevant quota, permits, or automatic import licensing, no purchase qualifications of financial leasing companies shall be separately required. In accordance with relevant provisions, the conditions for financial leasing companies to apply for business permit or recordation of medical instrument shall be eased. For financial leasing companies which apply to conduct financial leasing business relating to medical instrument and large equipment, the requirement for the establishment of enterprise warehouses shall be canceled. Unless it is otherwise provided by the laws and regulations, when the qualification of the tenant that obtains equipment and itself buys equipment through financial leasing is determined, it shall enjoy the same treatment.
xiii. Improving the publication system for the registration of financial leases. If financial leasing companies, save financial institutions, apply for the registration of relevant title in leases for entering into lease contract with tenants or conducting leasing business, the registration departments shall handle the applications in a timely manner in accordance with the law; if the state has not specified the registration authorities, when the financial leasing companies, save financial institutions, in Shanghai conduct financial leasing business, they shall handle financial leasing registration at the "financial leasing registration disclosure system" of the Credit Reference Center of the People's Bank of China, and disclose the title in the leases as contained in the financial leasing contracts. When the financial leasing companies, save financial institutions, and relevant institutions in Shanghai handle assets mortgage, pledge, assignment, and other business, they shall inquire into the title in the involved subject matters through the "financial leasing registration disclosure system." Financial leasing companies shall be supported in handling mortgage registration of movable property and immovable property at relevant departments in Shanghai in accordance with the law. The ship financial leasing registration system shall be vigorously explored and improved.
xiv. Supporting financial leasing companies which meet the prescribed conditions in connecting with the credit reference system of the People's Bank of China. For financial leasing companies, save financial institutions, which are willing to establish connection therewith, develop well their business and have established good systems, according to the principle of prudence, on the basis of giving full consideration to the management risks on submission of data and connection, the Shanghai Head Office of the People's Back of China shall vigorously, steadily organize and conduct in an orderly manner the pilot program of the connection with the financial credit information database of the People's Bank of China.
(4) Practically implementing all policies and improving policy support system
xv. Implementing all state and Shanghai's support policies. Enterprises shall be encouraged to adopt the financial leasing mode to conduct technology retrofits and purchase equipment. In respect of the programs implementing technology retrofits, transformation, upgrade, energy conservation, emission reduction, science and technology innovation, etc. through financial leasing, the actual users shall be supported in applying for the relevant guidance funds of the government. Competitive financial leasing companies shall be guided in participating in the development of public private partnership projects. The relevant tax policies on state financial leasing shall be implemented, and, in respect of the financing lease contracts concluded to conduct financial leasing business, including financing sale and leaseback, tax shall be calculated and stamps shall be affixed according to the total rental as contained in the contracts, by reference to the taxable item "loan contract." Financial leasing companies shall be guided though risk compensation, reward, interest subsidization and other policy tools in giving more financing support to micro, small and medium-sized enterprises Insurance institutions shall be encouraged to develop financial leasing insurance products, and the size and coverage of financial leasing export credit insurance shall be expanded.
xvi. Increasing financial support. Financial institutions shall be encouraged to give more support to financial leasing companies on the premise of controllable risks. Financial leasing companies shall be encouraged to make use of the receivable financing service platform of the Credit Reference Center of the People's Bank of China to conduct receivable financing. Financial leasing companies shall be encouraged to raise funds through bonds markets, and financial leasing companies which meet the prescribed conditions shall be supported in raising funds by offering stocks and securitizing assets. Financial leasing companies shall be supported in financing by being listed on capital markets at home and abroad, and financial leasing companies shall be supported in financing by being quoted on the National Equities Exchange and Quotations System and the Shanghai Equity Exchange. Equity investment funds, startup investment funds and all other types of funds are encouraged to enter the financial leasing industry. Insurance funds shall be encouraged to support the development of the financial leasing industry by investing in equity investment funds and other means. The investment of insurance funds in the assets for financial leasing though assets support plans and other methods shall be researched. The establishment of financial leasing industrial funds shall be supported, and private capital shall be guided in increasing investment. Assets management companies shall be supported in conducting the business to manage the assets of financial leasing enterprises.
(5) Improving public services and strengthening risk prevention and supervision.
xvii. Strengthening interim and ex-post supervision of financial leasing. The industrial supervision mechanism shall be improved, and a supervision indicator system and a supervision classification and rating system shall be established to encourage financial leasing companies to conduct credit rating. Industrial risk prevention shall be strengthened, the means combining on-site and off-site supervision shall be made use of to enhance the supervision of key links and such acts of financial leasing companies in violation of the laws and regulations as accepting deposits and issuing loans, financial leasing companies in violation of the laws and regulations shall be required to make rectification in a timely manner or be given punishment, and risk monitoring, analysis and early warning shall be strengthened, so as to prevent regional and systematic financial risks. A catalog of abnormal information submitted by enterprises and a blacklist system shall be established, the management of the submission of information by financial leasing companies shall be enhanced, and financial leasing companies, save financial institutions, shall be required to submit timely and accurate information through the National Financial Leasing Enterprise Management Information System. Information means shall be made use of to strengthen interim and ex-post supervision. A inter-departmental work communication and coordination system shall be established to strengthen information sharing, supervision and cooperation.
xviii. Making using of the role of industrial associations in self-regulation and service. The organizational establishment of the financial leasing industrial associations shall be vigorously advanced, specialized training and salon activities shall be organized, the cooperation with universities and research institutions shall be enhanced, and multiple-layer training of financial leasing talents shall be conducted. Industrial rules shall be developed, the role in service, guidance and self-regulation shall be effectively made use of, the industrial self-regulation shall be improved, and the industrial development shall be developed. The industrial development direction shall be researched, and the need of the industrial development shall be served. The exchange and cooperation with leasing associations from home and abroad shall be strengthened. The financial leasing industrial cooperation alliance shall be researched and established to guide the financial leasing companies in Shanghai in participating in international competition. The publicity and popularization of financial leasing concepts and knowledge shall be enhanced, and the social influence and recognition of the financial leasing industry shall be constantly improved, so as to create a good social atmosphere for the industrial development.
xix. Strengthening the building of talent teams. All types of outstanding talents required by the development of the financial leasing industry shall be vigorously introduced, and whoever meets the prescribed conditions may apply for residence permit points, transformation of residence permits to household registration, and direct household registration. Financial leasing companies shall be supported in organizing and providing relevant training for professionals, adopting measures to improve the comprehensive quality of professionals, and foster a group of financial leasing talents with international perspective and specialized ability. Private institutions shall be encouraged to establish financial leasing research centers, and universities with good conditions shall be encouraged to independently establish majors relating to financial leasing.
xx. Gradually establishing a unified, regulated and comprehensive financial leasing industrial statistics system and appraisal indicator system. The financial leasing statistics methods shall be improved, and the accuracy and timeliness of the statistical data shall be improved. The enterprise credit information disclosure system shall be depended on to establish an information sharing mechanism and strengthen the exchange on statistical information. A financial leasing industrial standardization system shall be established, the standards in the aspects of financial leasing trading, etc. shall be developed, the implementation and publicity of standards shall be strengthened, the level of standardization and regulation of the financial leasing industry shall be raised. Business index of the financial leasing industry in Shanghai shall be researched and developed, and industrial development reports shall be regularly published, to guide the sound development of the industry.
III. Guarantee measures
A communication coordination mechanism for municipal-level financial leasing management departments shall be established, and the Municipal Administration of Industry and Commerce and the Municipal Office of Finance Service shall take the lead in coordinating all relevant departments for accelerating the implementation of these Implementation Opinions. All the relevant departments shall further strengthen division of labor and cooperation, implement the leaders charged with special responsibilities and special responsible persons, detail policies and measures, effectively connect with the relevant state departments, and vigorously win over the support of the relevant state departments.
These Implementation Opinions shall come into force on September 1, 2016, and expire on December 31, 2020.
General Office of Shanghai Municipal People's Government
August 15, 2016