Encourage enterprises to prioritize the use of RMB for settlement in foreign-related business activities, and another Pudong New Area regulation has been issued to the Standing Committee of the People's Congress | Meeting | Foreign Affairs

Release time:Apr 14, 2024 10:11 AM

On July 25th, the fourth meeting of the 16th Standing Committee of the Municipal People's Congress voted to pass the "Several Provisions on Promoting the Development of Financial Leasing in Pudong New Area in Shanghai". According to regulations, Pudong will support enterprises in developing offshore financing leasing business, encourage enterprises to prioritize the use of RMB settlement in foreign-related business activities, expand the scope of medical device financing leasing business, and optimize relevant licensing and filing procedures.

Financial leasing has become the third largest debt financing tool after bank loans and public market bond issuance. It is the industry with the closest integration between the financial sector and the real economy, and also an important financial means to promote "Made in China" to go global and actively participate in international market competition. As of the first quarter of this year, the asset scale of the financing leasing industry in this city accounts for about one-third of the total national total. Among them, over 90% of the asset size and top enterprises are concentrated in Pudong New Area.

The "Several Regulations" have a total of 19 articles, grasping the characteristics of financing leasing business and leveraging the function of financial services for the real economy. According to regulations, leverage the credit mechanism to guide financing leasing companies to conduct business in key industries such as advanced manufacturing, strategic emerging industries, and green industries, and assist in the development of physical industries. At the same time, flexibly utilize regulatory tools such as business concentration and correlation to enhance the compatibility between the business field and industrial policies of financial leasing companies. This legislation follows the concept of sustainable development, promotes the integration of environmental, social, and governance factors into the financing leasing industry, and serves the green and low-carbon transformation and development. On the basis of the green finance regulations passed in Pudong New Area last year, this legislation strengthens financial support for technological innovation, further guiding and promoting enterprises to carry out intangible asset financing leasing business.

This legislation aims to solve the difficulties in the development of financial leasing and optimize the institutional rules for industry development. For example, supporting the import and export of large equipment such as aircraft, ships, and marine engineering structures by financing leasing companies within the comprehensive bonded zone, and encouraging the implementation of customs off-site supervision for those involving cross customs areas; Deepen institutional openness in the field of financing leasing, promote the optimization of the registration system for external debt of offshore financing leasing, support enterprises in developing offshore financing leasing business, and encourage enterprises to prioritize the use of RMB for settlement in foreign-related business activities; Support financial leasing companies to reduce business costs, collect rent in foreign currency domestically, and facilitate the circulation and use of foreign currency rental income. To promote the development of financing leasing in the shipping industry, this legislation supports the adoption of frequent project facilitation measures for shipping leasing business, further simplifying approval content, and optimizing management measures. At the same time, addressing the practical pain points of motor vehicle financing leasing business, improving the registration rules for motor vehicle mortgages under financing leasing business, and further ensuring the scale development of financing leasing companies.

The Several Regulations focus on the development of financing leasing and empower the industry to develop in a healthy and standardized manner through institutional empowerment. For example, supporting financing leasing companies to establish project subsidiaries in accordance with the law and encouraging relevant departments to provide convenience. Cultivate and support financing leasing companies to grow and strengthen, support their financing in multiple ways in multi-level capital markets, support eligible enterprises to access financial credit information databases, and expand development space. According to the concept and requirements of "financial governance synergy", we will promote people's courts to strengthen cooperation and governance with financial regulatory departments, financial infrastructure, and others in the field of financial leasing.

The full text is here. The "Several Provisions of Shanghai on Promoting the Development of Financial Leasing in Pudong New Area" will be implemented from October. | Medical Devices | Shanghai Municipality
The full text is here. The "Several Provisions of Shanghai on Promoting the Development of Financial Leasing in Pudong New Area" will be implemented from October. | Medical Devices | Shanghai Municipality

The Provisions of Shanghai Municipality on Promoting the Development of Financial Leasing in Pudong New Area, which were adopted at the 4th Session of the Standing Committee of the 16th Shanghai Municipal People's Congress on July 25, 2023, are hereby promulgated and shall come into force on October 1, 2023. Provisions of Shanghai Municipality on Promoting the Development of Financial Leasing in Pudong New Area Article 1 In order to promote the high-quality development of financial leasing in Pudong New Area, give full play to the function of financial services for the real economy, and promote the construction of the core area of an international financial center, these Provisions are formulated in accordance with the basic principles of relevant laws and administrative regulations and in the light of the actual conditions of Pudong New Area. Article 2 These Provisions shall apply to the promotion of development, management services and other activities of financial leasing companies whose domicile is in Pudong New Area. Article 3 The People's Government of Pudong New Area shall establish a financial leasing industry to promote development and coordinate supervision and management.

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What does Shanghai rely on to safeguard the safety of medical insurance funds?, Over the past five years, nearly 600 million yuan of "life-saving money" has been recovered. Supervision | Inspection | Shanghai
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