trending Market Intelligence /marketintelligence/en/news-insights/trending/fMP8t7ey28dy3dZI34AKYQ2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

China to reform financial leasing market

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity

Street Talk Episode 70 - Banks' Liquidity Conundrum Could Fuel M&A Activity

StreetTalk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk – Episode 69: Banks left with pockets full of cash and few places to go

China to reform financial leasing market

The China Banking and Insurance Regulatory Commission issued draft laws Jan. 8 to tackle the country's troubled financial leasing market, where just 2,985 of 10,900 registered entities are in operation.

The rest of the sector, which holds assets totaling 4.677 trillion yuan, are either shell companies or held in limbo, the commission said in a same-day press conference. Under the new rules, the companies will be given two years to meet fresh regulatory requirements, or risk closure. All registrations will be suspended in the meantime.

The draft rules also order financial lessors to, among other things, maintain total risk assets to at most eight times of net assets and curb business to a single and group lessee to at most 30% and 50% of net assets, respectively. Further, any fixed income securities investment business carried out by financial leasing companies must not exceed 20% of net assets.

There is an urgent need to refocus the sector on its main business while strengthening regulatory oversight, the regulator said. It added that financial lessors play a major role in providing financing for micro-, small and medium-sized enterprises via channels such as direct leasing, subleasing and leaseback.

The announcement also comes after China's central bank said it would strengthen regulations for financial institutions and step up support for troubled banks and small businesses in 2020 in a bid to combat financial risks.

As of Jan. 8, US$1 was equivalent to 6.95 Chinese yuan.