A new rule released by the China Banking Regulatory Commission last week allows domestic and foreign commercial banks to directly set up financial leasing companies in China from March 1.
This is the first time the regulator has permitted commercial banks to deal in financial leasing since 1997, when they were required to withdraw from the business.
The rule stipulates that a bank can invest in financial leasing companies only if it has a capital adequacy ratio of no less than 8%, total assets of no less than 80 billion yuan during the last year and if it has turned a profit for the last two consecutive fiscal years.
China's securities regulator has approved the launch of five new mutual funds, showing the government’s confidence in the market despite widespread concerns of a stock market bubble.
The China Securities Regulatory Commission (CSRC) approved the new funds after a two-month halt amid fears of runaway investment and excessive liquidity.
China has set up a special fund using revenues from textile export tariffs to help improve the competitiveness and efficiency of the country’s textile industry.
The 1.36 billion-yuan fund will be used to boost technical innovations in production, develop new fibres and help make the industry more environmenta friendly and energy efficient, says Zhang Li, an official with the Bureau of Economic Operation under the National Development and Reform Commission.
The government established the fund out of concern that the textile industry faces increasing international trade disputes and urgently needs to change its pattern of growth.
