Guiding Opinions of the General Office of Fujian Provincial Government on Supporting and Accelerating the Development of Financial Leasing Industry in the China (Fujian) Pilot FTZ
Min Zheng Ban  No.123
Fuzhou and Xiamen municipal governments, Administrative Committee of Pingtan Comprehensive Pilot Zone, all departments of the provincial government and institutions directly under the provincial government, and all institutions of central government in Fujian:
In order to guide the development of financial leasing industry in the pilot free trade zone (hereinafter referred to as FTZ), broaden the financing channels of enterprises, encourage cross-border financial leasing and promote the transformation and upgrading of the service industry, the following guiding opinions, as adopted by the provincial government, are hereby proposed.
1. Clarify the key development points of financial leasing industry. As for the financial leasing enterprises inside the FTZ, we shall encourage them to carry out the financial leasing business for strategic newly emerging industries, such as intelligent equipment manufacturing, the new generation of information technology, energy conservation and environmental protection. We shall also prevail upon them to expand their financial leasing business into transportation tools such as planes, automobiles and ships, and to promote the financial leasing services in such equipment as medical equipment, educational equipment, inspecting and testing equipment. As for the enterprises outside the FTZ, we shall encourage them to carry out financial leasing business by taking advantage of the financial leasing platform offered by the FTZ, and guide such infrastructure construction projects as subway, airport, expressway, high-speed railway to rent assets through financial leasing. All areas of the FTZ can decide their own key development points according to their actual situations.
2. Introduce and cultivate key enterprises. We shall support the famous financial leasing companies at home and abroad to set up headquarters or branch offices in the FTZ. We shall encourage Taiwan's financial institutions and enterprise groups to set up financial leasing companies in the FTZ. The local government of the FTZ shall give a one-off financial subsidy to financial or finance leasing companies, which have been or are newly established in the FTZ or relocate to the FTZ, according to the amount of their paid-up capital. If the paid-up capital is between 50 million yuan (inclusive) and 500 million yuan, they shall be granted a subsidy of not more than 1 million yuan. If the paid-up capital is between 500 million yuan (inclusive) and 1 billion yuan, they shall be granted a subsidy of between 1 million yuan and 3 million yuan. If the paid up capital is more than 1 billion yuan, they shall be granted a subsidy of not more than 5 million yuan.
3. Support and encourage business innovation. We shall support financial leasing enterprises (except for finance leasing companies) to sideline commercial factoring business, encourage them to set up project companies, and allow them to run large equipment, complete sets of equipment and real estate leasing business and global leasing business. If they establish professional subsidiaries (except for finance leasing company's professional subsidiaries), they may not be subject to the minimum registered capital requirement. We shall allow them to transfer and assign their financial leasing assets. We shall encourage them to expand and diversify financial leasing items by allowing them to offer such real estate leasing items as industrial buildings, warehouses and commercial real estates, which are used for production and operation, and allowing them to offer such intangible asset leasing services as software and technology. We shall encourage them to explore and carry out sale and leaseback property services, and under the supervision of the local government of the FTZ, their registration for transfer of real estates may be extended in accordance with the contract agreement as set by the both parties of financial leasing.
4. Expand financing channels inside and outside China. We shall support financial leasing enterprises to raise funds through the domestic and foreign capital markets, such as listing themselves in various share transfer systems for small and medium-sized enterprises and Straits Equity Trading Center across the country. The local government of the FTZ shall give a one-off special subsidy to enterprises that have raised funds through going public or listing themselves on the stock markets and invest all of the funds in the projects established in the FTZ. We shall encourage the financial leasing enterprises (except for finance leasing enterprises) established in the FTZ to borrow foreign currencies, the value of which shall not be more than the margin between 10 times the net asset and the year-end total asset, or borrow Chinese currency (Renminbi), the value of which shall not be more than 10 times the net asset. We also shall support financial leasing enterprises to issue foreign debts and explore to invigorate leasing assets through asset securitization in the foreign market. We will guide all kinds of overseas funds and insurance institutions to make suitable equity investment in the financial leasing enterprises in the FTZ so as to improve the asset and liability structure of these enterprises.
5. Implement performance-based rewards. The local government of the FTZ may give awards to financial leasing enterprises in accordance with their main business content and business performance. As for enterprises that set their offices in the FTZ and rent office buildings as their business premises, they shall be granted a one-to-three-year rent subsidy in accordance with the rental price of estate market. As for financial leasing enterprises that has purchased equipment and their equipment has been leased by the enterprises in the FTZ, they shall be granted a reward of 3‰ to 5‰ of the contract performance amount. As for enterprises that have purchased intelligent manufacturing equipment, planes, ships, new energy producing equipment, medical equipment in compliance with the FTZ police, they shall be granted a reward of 5‰ to 10‰ of their total amount of investment. The local government of the FTZ can respectively set a maximum reward amount for a single business and total businesses for a single enterprise and relevant reward standard for financial leasing enterprises.
6. Implement incentives for professional talents. We shall support the high-level financial leasing talents in the FTZ to file an application for registering themselves as special provincial talents in accordance with the regulations as prescribed in the High-level Talents Introduction Plan for the China (Fujian) Pilot Free Trade Zone. Qualified talents shall be granted subsidies by provincial special budget for talents, varying from 250 thousand yuan to 2 million yuan, for them to settle home, and enjoy the preferential policies for high-level talents offered by the local government of the FTZ. As for the new high-level talents from the headquarters of famous financial leasing enterprises at home and abroad, the local government of the FTZ shall offer them housing and living allowances in accordance with their business performance.
7. Do a good job in relevant matters. We shall follow the principle of equal protection, legal rights of property, one property one right and publication and public credit of property rights and develop sound formalities for registering, publicizing and inquiring the ownership of financial leasing items. The financial leasing enterprises shall be connected to the enterprise credit system of the People’s Bank of China in accordance with the relevant regulations and work arrangements of the People's Bank of China. The financial leasing enterprises shall go through formalities for registering the leasing status of financial leasing items and the pledge and transfer of such accounts receivable as rent in a unified registry platform for chattel financing, and also shall check the ownership of the subject matters while mortgaging, pledging and transferring them. The competent registration authorities shall publicize the leasing registration and declaration materials, simplify the registration process, and complete the formalities for the registration of changes in the ownership of the leased real estate and in the mortgage of chattels within prescribed time limit. We also shall simplify the registration, import and export procedures for such financial leasing items as ships, agricultural machinery, medical instruments and aircraft. In assessing and determining the qualification of enterprises, no matter the equipment is introduced by leasing or by purchasing, they all shall be subject to the same standard. As for financial leasing companies that apply for offering medical device and equipment leasing services, we shall simplify the ownership, size and other requirements for the business premises and decentralize the authority to administrate and issue business licenses. The customs shall set up a green channel to simplify customs clearance procedures for the import and export of leasing enterprises. We shall offer preferential tax policies for enterprises engaged in aircraft leasing and expedite the tax refund for leasing items.
8. Strengthen guidance and control risks. Fuzhou and Xiamen municipal governments and the Administrative Committee of Pingtan Comprehensive Pilot Zone shall strengthen guidance based on the actual conditions of each area of the FTZ. To make it, they shall give specific guiding opinions on and formulate incentive measures for the development of financial leasing industry for each area and file them with the general office of the provincial government by October 1st. Fujian Banking Regulatory Commission, Fujian Provincial Financial Department, Fujian Provincial Commission of Economy and Information and Fujian Provincial Department of Commerce shall clearly divide their work and task in accordance with their responsibilities, strengthen supervision and service over the financial leasing industry, exercise continuous supervision and monitoring over the financial leasing enterprises’ operation status and risks, build a major matters reporting mechanism, a risk pre-warning mechanism and a emergencies responding and handling mechanism, prevent the operation risks of financial leasing industry, and crack down on illegal activities such as illegal financing. Additionally, they shall guide each leasing party to timely settle disputes through litigation or arbitration and support the industry associations and other relevant recognized parties to timely mediate and resolve the disputes among leasing parties.
The General Office of Fujian Provincial Government
September 4, 2015