BIZCHINA / Finance
Measures for the Administration of Foreign-capital Lease Industry
Updated: 2006-04-18 10:37
Article 15 If the leased property, which is to be imported by a
foreign-capital financial leasing company in light of the choice of a
lessee, is governed by special policies on quota, license, etc., the
lessee or financial leasing company shall go through application
formalities in accordance with the relevant provisions.
When importing the leased property, a foreign-capital leasing company
shall comply with the currently effective provisions regarding the import
of equipment by foreign-capital enterprises.
Article 16 For the purposes of preventing risks and guaranteeing the
business operation security, generally, the risk assets of a financial
leasing company shall not exceed 10 times of the total amount of its net
assets. The risk assets shall be determined on the basis of residual
assets, namely, the result after deducting the cash, bank deposits,
national debts and entrusted leased assets from the total assets.
Article 17 A foreign-capital financial leasing company shall, not later
than March 31 of each year, submit to the MOFCOM the business operation
report of the previous year and the financial statement of the previous
year upon audit by an accounting firm.
Article 18 The Lease Industry Commission of the China Foreign-capital
Enterprises Association is a guild organization performing
self-discipline management of the foreign-capital lease industry. The
foreign-capital leasing companies and foreign-capital financial leasing
companies are encouraged to join it.
Article 19 Where a foreign-capital leasing company or foreign-capital
financial leasing company violates any law, regulation or rule of China,
it shall be punished according to the relevant provisions.
Article 20 The establishment of a foreign-capital leasing company or
foreign-capital financial leasing company in the Mainland by a company,
enterprise or any other economic organization from the Hong Kong Special
Administrative Region, Macao Special Administrative Region or Taiwan
Region shall be implemented with reference to the present Measures.
Article 21 The provincial administrative department of commerce as
mentioned in the present Measures refers to the administrative department
of commerce of each province, autonomous region, municipality directly
under the Central Government, city directly under state planning or of
the Xinjiang Production and Construction Group.
Article 22 The power to interpret the present Measures shall be vested in
the MOFCOM.
Article 23 The present Measures shall go into effect as of March 5, 2005.
The Interim Measures for the Administration of Examination, Approval of
Foreign-capital Leasing Companies issued by former Ministry of Foreign
Trade and Economic Cooperation through Order No. 3 in the year of 2001
shall be abolished simultaneously.
Promulgated by the Ministry of Commerce on 2005-2-3
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