China easing financial leasing regulations

China's financial leasing sector, which has seen rapid growth in recent years, is set to embrace fewer regulatory restrictions, according to new rules released Monday by the country's top banking regulator, in a fresh push for promoting market-oriented reforms in the financial arena.

Financial leasing firms are no longer subject to the provision of having a main investor with a stake of 50 percent or more in their registered capital, the China Banking Regulatory Commission (CBRC) announced.

Instead, financial leasing firms can be established as long as one of the founders holds at least 30 percent of the equity and is qualified to engage in financial leasing business - as either a commercial bank, manufacturing enterprise or overseas financial leasing company, the new rules stipulate.

The existing business scope will be expanded allowing financial leasing companies to engage in advanced businesses that include investment in fixed-income securities, said the CBRC's new rules, which have gone into effect since the announcement day.

The latest action was part of the nation's broad-based efforts to reform its financial system.

On March 11, CBRC chief Shang Fulin said during this year's two sessions that the country will roll out a pilot program setting up five privately owned banks in Tianjin, Shanghai, East China's Zhejiang Province and South China's Guangdong Province.

The CBRC has given approval to 10 companies including Internet giants Alibaba Group and Tencent Holdings to participate in the pilot, which is set to open the banking sector to private investors.