The China Banking and Insurance Regulatory Commission issued a notice on the issuance of a list of encouragements, negative lists, and positive lists for the development of financial leasing companies and project companies.

On August 23, the China Banking and Insurance Regulatory Commission issued a notice on the issuance of the Encouragement List, Negative List, and Positive List for Project Companies of Financial Leasing Companies. The notice mentioned that financial leasing companies should improve their business access related systems in accordance with the list contents and practical situations, fully play the guiding role of the Encouragement List and Negative List. Financial leasing companies are required to report on the implementation of the Encouragement List to the local financial regulatory authority on a regular basis. For those who actively implement and achieve good results, each financial regulatory authority should consider it in their supervision ratings. The original text is as follows: Notice from the General Office of the National Financial Supervision and Administration Bureau on the issuance of the Encouragement List, Negative List, and Positive List for Project Companies of Financial Leasing Companies To all financial regulatory authorities: In order to guide the financial leasing industry to implement the decisions and arrangements of the Party Central Committee and the State Council, focus on national strategic needs, adhere to the principle of "doing something, not doing something", optimize business direction and structure, better play the professional and characteristic financial functions, provide "financing + leasing" financial services for enterprises, promote high-quality economic and social development, the China Banking and Insurance Regulatory Commission has formulated the "Encouragement List for the Business Development of Financial Leasing Companies" (hereinafter referred to as the Encouragement List), "Negative List for the Business Development of Financial Leasing Companies" (hereinafter referred to as the Negative List), and "Positive List for the Business of Project Companies of Financial Leasing Companies" (hereinafter referred to as the Positive List). We are now issuing them to you, and the relevant matters are notified as follows: 1. Financial leasing companies should adjust their business plans based on their functional positioning and inherent characteristics according to the Encouragement List, support the demand for important general equipment and major technological equipment that promote industrial optimization and upgrading, help build a modern industrial system, and promote the development of new productive forces. At the same time, they should timely track and analyze industry development trends to avoid blind investments leading to low-level duplicate construction of industrial projects. 2. Financial leasing companies should strictly implement the "Notice of the General Office of the China Banking and Insurance Regulatory Commission on Strengthening the Compliance Supervision of Financial Leasing Business of Financial Leasing Companies" (CBIRC Office [2022] No. 12) and the "Notice of the National Financial Supervision and Administration Bureau on Promoting Regular Operations and Compliance Management of Financial Leasing Companies" (JinGui [2023] No. 8) regarding relevant provisions in the prohibited business area. Existing related businesses should be naturally settled and shall not be extended or renewed. 3. Financial leasing companies should implement the positive list management on the scope of leased items of the project companies in accordance with Article 3 of the "Administrative Measures on Project Companies of Financial Leasing Companies" (CBIRC Office [2021] No. 143). The scope of leased items of project companies established by professional subsidiaries of financial leasing companies should conform to the specific business areas or specific business models of the professional subsidiaries. 4. Financial leasing companies should improve their business access related systems in accordance with the list contents and practical situations, fully play the guiding role of the Encouragement List and Negative List. Financial leasing companies should report on the implementation of the Encouragement List to the local financial regulatory authority on a regular basis. For those who actively implement and achieve good results, each financial regulatory authority should consider it in their supervision ratings. 5. The China Banking and Insurance Regulatory Commission will update and adjust the lists in a timely manner according to the national policy orientation, relevant policy document requirements, and the development of financial leasing companies' businesses, and will announce them to the public through the website of the China Banking and Insurance Regulatory Commission. General Office of the National Financial Supervision and Administration Bureau August 16, 2024 This article is selected from the official website of the "China Banking and Insurance Regulatory Commission". Editor: Liu Jiayin.