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 Several Provisions of Shanghai on Promoting the Development of Financial Leasing in Pudong New Area have been passed by the Fourth Meeting of the Standing Committee of the 16th People's Congress of Shanghai on July 25, 2023, and are hereby promulgated. They will come into effect 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 financing 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 the international financial center, this regulation is formulated in accordance with the basic principles of relevant laws and administrative regulations and in combination with the actual situation of Pudong New Area.

Article 2: These regulations apply to the promotion of development, management services, and other activities of financing leasing companies located in Pudong New Area.

Article 3: The People's Government of Pudong New Area shall establish a working mechanism that promotes the development of the financing leasing industry and coordinates supervision and management, and study and formulate policy measures to promote the development of the industry.

The finance, development and reform, finance, market supervision, ecological environment, public security, intellectual property and other departments of the city and Pudong New Area, as well as the management committee of the Lingang New Area of the China Free Trade Pilot Zone, shall, in accordance with their work responsibilities, improve supporting policies, and support and promote the development of the financing leasing industry.

The supervision and management of the financing leasing industry in Pudong New Area shall be carried out in accordance with relevant national and local regulations.

Article 4: Support the banking and financial institutions in Pudong New Area to increase their credit scale to financing leasing companies that conduct business in key areas such as advanced manufacturing, strategic emerging industries, and green industries in accordance with the requirements of the national financial management department in Shanghai.

If a financial leasing company conducts business in areas that comply with national and local policy guidance, the local financial regulatory department of the city may, in combination with regulatory ratings, appropriately relax the regulatory restrictions on its business concentration and correlation in accordance with relevant regulations.

Article 5: Support financial leasing companies to incorporate environmental, social, and governance factors into their internal governance and business decision-making, improve management processes, enhance their own environmental, social, and governance performance, and promote the green and low-carbon transformation and development of financial leasing services.

Support the Municipal Financial Leasing Industry Association in formulating green financial leasing business guidelines. Financial leasing companies that follow the guidance of green financial leasing business will receive corresponding incentives and support from the development and reform, finance, ecological environment, finance and other departments of Pudong New Area, as well as the management committee of Lingang New Area.

Article 6: The national financial regulatory department shall optimize the registration system for offshore financing leasing external debt in Shanghai institutions, support financing leasing companies in developing offshore financing leasing business, and encourage financing leasing companies to prioritize the use of RMB for settlement in foreign-related business activities.

The national financial regulatory authorities in Shanghai support financing leasing companies in collecting rent in foreign currency within the country, encourage banking and financial institutions in Pudong New Area to optimize their business review methods, and support financing leasing companies in exploring the circulation and use of foreign currency rental income.

Finance leasing companies within the comprehensive bonded zone that import and export large equipment such as aircraft, ships, and marine engineering structures across customs areas can implement customs remote supervision while ensuring effective supervision and implementing relevant tax policies.

Article 7: If a financing leasing company carries out intangible asset financing leasing business such as patent rights in accordance with regulations, it shall obtain relevant rights to the leasing subject matter, establish a sound value evaluation and pricing system that adapts to the characteristics of intangible assets, and reasonably determine the rental level.

Financial leasing companies should closely monitor the risk coverage level of intangible asset value on financing lease claims, scientifically determine the value of intangible assets, and formulate effective risk response measures.

Article 8: If a financing leasing company engages in shipping financing leasing businesses such as aircraft and ships, banking and financial institutions may adopt facilitation measures such as exemption from prior registration for special overdue foreign exchange refunds in goods trade.

If a financing leasing company leases aircraft, ships, or equipment purchased from overseas to overseas lessees, the national financial management department in Shanghai will simplify the approval process and optimize management measures on the basis of ensuring business authenticity review.

Article 9: If a financing leasing company engages in motor vehicle financing leasing business, it may apply for mortgage registration with the traffic management department of the Pudong New Area public security organs for the local license plate motor vehicles it enjoys ownership of. For the first time applying for motor vehicle mortgage registration, the original company business license and a sample seal of the official seal should be submitted for filing; When handling the registration of motor vehicle mortgage or the cancellation of mortgage registration, the submitted proof of subject qualification can be a copy of the business license stamped with the official seal.

Article 10: The drug regulatory authorities of the city and Pudong New Area shall establish a sound medical device operation license and filing system that is suitable for financing leasing, and support financing leasing companies in expanding their business scope to various types of medical devices managed according to fixed assets.

When a financing leasing company applies for a medical device operation license, it can simultaneously apply for the second category of medical device operation registration, without the need to separately submit a registration application form and paper materials.

Financial leasing companies engaged in medical device financing leasing activities should establish a quality management system covering the entire process of medical device financing leasing, and strengthen the information traceability management of medical device financing leasing products.

Article 11: Support financing leasing companies to establish project subsidiaries in accordance with the law, and the market supervision department shall provide convenience.

Support financial leasing companies to issue various bonds according to regulations, and issue debt financing instruments through inter-bank and exchange markets.

Support financial leasing companies to carry out asset securitization business, go public and list on multi-level capital markets both domestically and internationally in accordance with the law, carry out mergers and acquisitions, and enhance their financial strength.

Article 12: The national financial regulatory authorities in Shanghai support financing leasing companies that meet the conditions to apply for access to the basic database of financial credit information.

Financial leasing companies that access the basic database of financial credit information should do a good job in credit compliance and data security in accordance with regulations.

Article 13: Financing leasing companies shall conduct financing leasing business activities in accordance with the principle of good faith. If the lessee fails to pay the rent on time, the financing leasing company may terminate the financing leasing contract in accordance with legal provisions or contractual agreements.

After the termination of the financing lease contract, the financing lease company may take legal measures to recover the leased property and promptly determine the value of the leased property through entrusted evaluation or open market auction.

Article 14: Financial leasing companies shall standardize service fees. If a financing leasing company and a lessee make an agreement on the collection of service fees, they shall provide services that match the quality and price as agreed, and shall not violate the agreement by converting the obligations that should be borne by the lessor into paid services.

Financial leasing companies shall, in accordance with the law, clearly indicate to the lessee the charging situation of various fees such as service fees, handling fees, consulting fees, etc.

Article 15: This city fully leverages the collaborative governance role of the people's courts, financial regulatory departments, financial infrastructure operation institutions, etc., strengthens financial governance collaboration, deepens financial governance cooperation, prevents and resolves financial risks, supports the effectiveness of regulatory rules in the financing leasing industry, and ensures the standardized and healthy development of the financing leasing industry.

Article 16: Support the establishment and improvement of dispute resolution mechanisms in the financing leasing industry, strengthen communication and coordination among people's courts, judicial administrative organs, arbitration institutions, professional mediation organizations, industry associations, and notary institutions, and improve the "one-stop" financing leasing dispute resolution mechanism that connects litigation and non litigation.

Support the financing leasing industry association in this city to play a role in industry standardization, self-discipline management, litigation source governance, and dispute mediation.

Article 17: The relevant people's courts and arbitration institutions in this city shall respect the transaction habits of the financing leasing industry in their trial and arbitration activities, publish typical cases of financing leasing, and create a good legal environment for the development of the financing leasing industry.

Support the Pudong New Area People's Court to deepen the demonstration judgment mechanism in the trial of financing lease cases, promote the effective connection between trial and execution, and safeguard the legitimate rights and interests of all parties involved in financing leases.

Article 18: For financing leasing companies with their domicile in the Lingang New Area, these regulations shall apply accordingly.

Article 19: These regulations shall come into effect on October 1, 2023.