Sui Jin Rong [2021] No. 1

　　Notice of Guangzhou Municipal Local Financial Supervision and Administration Bureau on Issuing the Implementation Opinions on Promoting the High-Quality Development of the Financial Leasing Industry in Guangzhou

To all district governments, and all departments and directly subordinate agencies of the Guangzhou Municipal People’s Government:

　　The Implementation Opinions on Promoting the High-Quality Development of  Financial Leasing Industry in Guangzhou have been approved by the Guangzhou Municipal People’s Government and are hereby issued for your due implementation. Problems encountered in the course of implementation should be directly reported to the Guangzhou Municipal Local Financial Supervision and Administration Bureau.

　　Guangzhou Municipal Local Financial Supervision and Administration Bureau

　　January 4, 2021

　　Implementation Opinions on Promoting the High-Quality Development of the Financial Leasing Industry in Guangzhou

　　Financial leasing is an important industry and a novel investment and financing tool in a modern economy, playing an important role in stabilizing growth, adjusting structure and promoting transformation. Over the past few years, the financial leasing industry in Guangzhou has been rapidly developing, with continuous expansion in the range of services, an increasingly prominent agglomeration effect, and progressive improvements in regulatory quality. These have made positive contributions to the upgrading of the advanced manufacturing sector, promoting socio-economic development, and improving the lives of the people in Guangzhou. However, on the whole, the financial leasing industry in Guangzhou is still in the primary stage of development, with its functions not yet in full play, and some distance from the requirements for high-quality economic development. In order to actively adapt to the requirements for the reform and transformation of the financial leasing industry, promote the high-quality development of the city’s financial leasing industry, and better serve overall economic and social development, the following implementation opinions are hereby put forward:

　　1. General Requirements

　　1.1.Guiding principles. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we should consider the development of the financial leasing industry in the overall layout of Guangzhou’s economic and social initiatives. We will build a modern financial leasing service system that is safe, stable, professional, efficient, vibrant, comprehensive and competitive, and contribute to Guangzhou’s efforts to inject new vitality into an old city, serve the Four-Pronged Urban Renewal Strategy, foster a new “dual circulation” development paradigm, and promote the joint building of an international financial hub in the Guangdong-Hong Kong-Macao Greater Bay Area.

　　1.2.Basic principles. First, commitment to the leading role of the market and support from government. We will optimize the business environment, give full play to the decisive role of the market in resource allocation, give better play to the supporting and guiding role of government, and increase the level of policy support. Second, commitment to reform, innovation and greater openness. We will comprehensively deepen the reform of systems and mechanisms, increase our openness domestically as well as internationally, and inject new energy for the sustained development of the industry. Third, improvements in regulation and guarding against risks. We will improve laws, regulations and regulatory systems, enhance regulatory efficacy, and standardize market order. We will strike a balance between development acceleration and risk prevention, and ensure that no systemic regional financial risks occur.

　　1.3.Development objectives. By 2025, we will establish a national-level modern financial leasing service system that is first-class, stable, well-regulated and comprehensive, and cultivate a number of leading enterprises with outstanding overall advantages and high-quality enterprises with distinctive expertise. The penetration rate of the financial leasing market will be increased significantly, and the leading position of the financial leasing industry further consolidated. The special position of financial leasing in the Guangdong-Hong Kong-Macao Greater Bay Area will be fully demonstrated.

　　2. Giving full play to the role of financial leasing in promoting investment and serving the development of theGuangdong-Hong Kong-Macao Greater Bay Area

　　2.1.Serving fixed asset investments by enterprises. We will support financial leasing enterprises in participation in the construction of new infrastructure, new forms of urbanization and transportation, water conservancy, and other major projects, and provide services for fixed asset investments by enterprises. Focus will be on supporting sectors such as 5G infrastructure, ultra-high voltage transmission, intercity high-speed railways and intercity rail transit, new-energy automobiles and charging piles, big data centers, artificial intelligence, and the Industrial Internet. We encourage financial leasing enterprises to serve the technological transformation of enterprises in Guangzhou, and improve the efficiency of technological transformation and market competitiveness of enterprises through financial leasing. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, Guangzhou Municipal Development and Reform Commission, Guangzhou Municipal Industry and Information Technology Bureau, Guangzhou Municipal Housing and Urban-Rural Development Bureau, Guangzhou Municipal Transportation Bureau, Guangzhou Water Authority, all district governments).

　　2.2.Strengthening the industry chain for aviation leasing. We will consolidate the advantages of aircraft leasing, and support airlines in procuring aircraft through leasing. We will expand the business scope of aircraft leasing companies, and provide incentives to companies in upstream and downstream industry chains for business activities related to the leasing of aircraft engines, simulators, aviation supplies, aviation and airport facilities and equipment, as well as the trading and disposal of old aircraft assets. We will encourage aircraft financial leasing enterprises to engage in transactions of asset packages to improve the turnover efficiency of aircraft leasing assets. (Responsible departments: Guangzhou Local Financial Supervision and Administration Bureau, Guangzhou Aerotropolis Development District Administration, Administrative Committee of Nansha Development Zone)

　　3. Guiding financial leasing services in improving people’s livelihood and stimulating consumption potential

　　3.1.Leveraging financial leasing tools to innovate channels whereby public services are provided. We will sum up experiences in how financial leasing services have successfully served public transportation in Guangzhou, explore ways to replicate and promote such efforts in the fields of public healthcare, education, sanitation and other such services in the Guangdong-Hong Kong-Macao Greater Bay Area, and encourage the purchase of financial leasing services in the provision of public services and promotion of infrastructure construction and operations. (Responsible departments: Guangzhou Municipal Development and Reform Commission, Guangzhou Municipal Local Financial Supervision and Administration Bureau, Guangzhou Municipal Education Bureau, Guangzhou Municipal Health Commission, Guangzhou Urban Administrative and Law Enforcement Bureau, and all district governments)

　　3.2.Actively and steadily developing the rental market for household consumer goods. We will support automobile sales through financial leasing and other means, and increase support for manufacturers engaged in financial leasing. We will steadily promote household consumption leasing, and improve market penetration of financial leasing in household durable goods and information equipment. (Responsible departments: Guangzhou Municipal Financial Supervision and Administration, Guangzhou Municipal Industry and Information Technology Bureau and Guangzhou Municipal Commerce Bureau)

　　4. Developing cross-border financial leasing and consolidating traditional advantages in foreign investment and foreign trade

　　4.1.Introducing foreign capital and equipment through financial leasing. Financial leasing companies shall be encouraged to introduce low-cost capital from abroad by using the advantages of external debt quotas and the Free Trade Zone, and explore cross-border financial leasing asset transactions to promote asset interconnectivity. Financial leasing companies will be supported in making use of the legal and taxation advantages of Guangdong Province, Hong Kong and Macao. Through financial leasing, advanced foreign equipment will be introduced, expanding the import of high-end equipment and enhancing the quality of technical equipment in China. (Responsible departments: Administrative Committee of Nansha Development Zone, Guangzhou Municipal Local Financial Supervision and Administration Bureau, and Guangzhou Municipal Commerce Bureau)

　　4.2.Serving the “going global” and participation of facility and equipment producersin the Belt and Road Initiative. We will encourage manufacturers of construction machinery, railway, electricity, civilian aircraft, ship, ocean engineering equipment, and other large complete sets of equipment to leverage financial leasing to expand their international markets, develop cross-border leasing, and promote the global export of equipment, so as to serve the national BRI strategy.(Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, and Guangzhou Municipal Commerce Bureau)

　　5. Exploring innovative ways to support agriculture, small businesses and green enterprises, and filling gaps in inclusive finance.

　　5.1.Actively developing agriculture-related financial leasing. We encourage financial leasing companies to support the development of modern agriculture, address the problem of insufficient funds for the purchase and renewal of large-scale agricultural machinery, production equipment and processing equipment, and provide incentives toward agricultural financial leasing projects. We will explore and study innovations in agriculture-related leaseholds. We will explore the innovative mode of combining financial leasing with agricultural insurance. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, Guangzhou Municipal Agricultural and Rural Affairs Bureau)

　　5.2.Further enhancing financial leasing services for small and micro enterprises. Financial leasing companies shall be encouraged to provide products and services suitable to the characteristics of micro, small and medium-sized enterprises (MSME). We shall strengthen support for high-tech and innovative MSMEs, and broaden their financing channels. Incentives will be provided for financial leasing companies serving micro, small and medium-sized enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, and Guangzhou Municipal Industry and Information Technology Bureau)

　　5.3.Actively promoting green financial leasing. We will promote cooperation between third-party institutions and green finance-related intermediary institutions in the formulation of standards for and the assessment of green financial leasing, accelerate the establishment of a repository of green projects, encourage financial leasing companies to provide financial leasing for green enterprises or projects, and promote the financial leasing services and green finance reform and innovation pilot zone strategy. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, Guangzhou Municipal Development and Reform Commission, Guangzhou Municipal Bureau of Ecology and Environment Bureau, and Huadu District People’s Government)

　　6. Optimizing the layout of financial leasing and guiding agglomeration development

　　6.1.Building a core engine for development based on the Free Trade Zone. We shall make full use of the advantages of Nansha Free Trade Zone in Guangdong, encourage financial leasing companies to conduct FT accounts pilot programs, and boost the gathering of characteristic leasing businesses such as for aircraft and ships. We shall give full play to the advantages of the “Early and Pilot Implementation” policy, and actively explore innovations in financial leasing policies, systems and services. Under circumstances of obtaining a state-level special approval, we will strive to carry out pilot collections of foreign currency-denominated rent for domestic commercial leasing operations, and promote the establishment of a global aircraft leasing center by the Nansha Free Trade Zone together with Hong Kong and Macao. (Responsible departments: Administrative Committee of Nansha Development Zone, Guangzhou Municipal Local Financial Supervision and Administration Bureau, Guangzhou Branch of the People’s Bank of China, and the Guangdong Branch of State Administration of Foreign Exchange)

　　6.2.Forming a layout featuring multiple forms of support. We shall replicate and popularize the successful experiences of the Free Trade Zone, promote the development of a multi-point support layout comprising the Huangpu Industrial Financial Leasing Cluster, the Yuexiu Financial Leasing Fund Cluster, the Urban Renewal Model Area and the Huadu Green Financial Leasing Cluster, support other districts in giving full play to their own advantages to establish characteristic financial leasing clusters, and realizing spatially differential and complementary development. (Responsible departments: All district governments)

　　7. Deepening the reform and opening up of financial leasing and improving the development level of the industry

　　7.1.Deepening the reform of the financial leasing industry. We shall accelerate the establishment of modern financial leasing enterprise systems, improve corporate governance structures, and establish and improve the evaluation system for leaseholds. We shall promote the reform of mechanisms for market entry and exit, improve the systems in financial leasing markets, and encourage the development of professional financial leasing companies. (Responsible department: Guangzhou Municipal Local Financial Supervision and Administration Bureau)

　　7.2.Greater openness. Domestic and overseas professional institutions with outstanding performance in their main business, advanced management, and excellent records shall be encouraged to establish or invest in financial leasing companies. Financial leasing companies shall be supported in establishing professional subsidiaries and special project companies in pilot free trade zones and areas under special customs supervision to conduct financial leasing business activities. We will support the hiring of high-caliber talent from within and without China by the financial leasing industry to optimize the talent mix in financial leasing companies. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, and Guangzhou Municipal Human Resources and Social Security Bureau)

　　7.3.Encouraging innovation in financial leasing products and services. Financial leasing companies shall be encouraged to proceed with business innovation, continuously optimize their product portfolios, transaction structure, rental arrangements, risk control and other designs, and improve service quality. We shall also encourage the use of cloud computing, big data, artificial intelligence, blockchains and other new technologies in promoting innovation in sales channels and service models, the development of professional, characteristic and differentiated product services, and lowering of homogeneous and inefficient competition. (Responsible department: Guangzhou Municipal Local Financial Supervision and Administration Bureau)

　　8. Strengthening and improving the supervision and administration of financial leasing to prevent and eliminate risks

　　8.1.Promoting the modernization of the regulatory system and regulatory capacity. We will continue to integrate institutional regulation with functional regulation, macro-prudential regulation with micro-prudential regulation, and move faster to build a regulatory system that focuses on risk management. We will strengthen corporate governance and internal control and oversight, and improve the regulation of market behavior. We will improve the legal system and enhance the rule of law in oversight, as well as actively promote the use of information technology in regulatory oversight and strengthen cooperation with Guangzhou Financial Risk Monitoring and Prevention Center in off-site supervision. (Responsible department: Guangzhou Municipal Local Financial Supervision and Administration Bureau)

　　8.2.Strengthening self-regulation in the financial leasing industry. We shall promote the development of self-regulation industry associations, guide these organizations in formulating self-regulation conventions and norms, and encourage them to explore industry rating systems and blacklist systems. We shall establish employee credit information systems, release industry indices, study mechanisms for interfacing between dispute litigation, arbitration and mediation, and strengthen exchanges and cooperation with arbitration institutions, so as to boost the influence of the financial leasing industry in Guangzhou. (Responsible department: Guangzhou Financial Leasing Industry Alliance)

　　8.3.Ensuring that no systemic and regional financial risks occur. We shall comprehensively strengthen the supervision and administration of the financial leasing industry, establish and improve risk monitoring and early warning mechanisms, and explore the establishment of a chief risk officer system in the financial leasing industry. We shall establish a mechanism for the notification of major events in financial leasing companies, improve risk emergency plans, optimize processes and systems related to risk disposition, and improve risk management capabilities. We shall strengthen coordination in financial supervision and administration to prevent risks from spreading across industries. (Responsible department: Guangzhou Municipal Local Financial Supervision and Administration Bureau, all district governments)

　　9. Strengthening infrastructure construction and optimizing the development environment for the financial leasing industry

　　9.1.Expanding financing channels. Financial leasing companies shall be encouraged to launch diversified financing methods and strengthen cooperation with banking institutions. We shall actively encourage financial leasing companies to raise funds from the bond market, and support qualified companies in raising funds through stock issuance, asset securitization and other relevant means. (Responsible department: Guangzhou Municipal Local Financial Supervision and Administration Bureau)

　　9.2.Improving support systems. We shall improve registration management in relevant fields by handling the ownership registration of lease items related to financial leasing transactions for financial leasing companies in accordance with laws and regulations, and support financial leasing companies in handling the registration of mortgages (pledges) related to financial leasing transactions. Procedures for registering mortgages of motor vehicles shall be optimized to make relevant transactions more convenient for the mortgagor and mortgagee. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, Guangzhou Municipal Public Security Bureau, Guangzhou Municipal Housing and Urban-Rural Development Bureau, Guangzhou Municipal Commerce Bureau, Guangzhou Municipal Market Regulation Bureau, and GuangzhouTax Serviceof the State Administration of Taxation)

　　9.3.Greater diversification in mechanisms for dispute resolution. We shall deepen cooperation between arbitration and the financial leasing industry, encourage the adoption of arbitration as an alternative means for resolving disputes pertaining to financial leasing contracts, and give full play to the professionalism, efficiency and speed of commercial arbitration. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, Guangzhou Arbitration Commission)

　　10. Improving policies of supporting the high-quality development of modern financial leasing

　　10.1.Improving the mechanisms for deliberation and coordination. We shall play a leading role in overall planning, improve the joint conference system for financial leasing with the deputy mayor in charge as the convener and all relevant district governments and relevant entities of the financial leasing industry as members, and study and resolve major problems. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, all member entities and all district governments)

　　10.2.Increasing financial support. We will implement various national, provincial and municipal policies for supporting the financial leasing industry, continue to use funds for the development of the financial leasing industry (RMB90 million) to support its development, and improve rules on the use of funds. Financial leasing companies shall, on an equal basis, enjoy the benefits of policies supporting the financial leasing industry. (Responsible departments: Guangzhou Municipal Local Financial Supervision and Administration Bureau, and Guangzhou Municipal Finance Bureau)

　　10.3.Encouraging all districts to strengthen policy support. All district governments shall intensify their support for the financial leasing industry, and provide support in terms of talents, funds, and office premises in accordance with these Implementation Opinions and with reference to the practices of domestic regions where financial leasing is well-developed. All district governments shall provide guidance for financial leasing companies to play an important role in promoting the development of the equipment manufacturing industry, the upgrading and transformation of enterprise technologies, the import and export of equipment, and other relevant aspects. (Responsible department: all district governments)

　　Mode of disclosure:Active disclosure