CBRC encourages Chinese lessors to compete overseas

The China Banking Regulatory Commission (CBRC) has issued provisional regulations on the management of specialised subsidiaries of financial leasing companies, as part of an initiative to encourage China-based lessors to reduce their dependence on the domestic market in order to compete with international companies. According to the regulations, financial institutions with associated aircraft leasing businesses are required to possess a total capital of CNY50 million ($8.1 million) or equivalent in a “freely convertible currency”. The regulations also require any parent financial institution to hold a majority stake in the relevant lessor.