Approaching Leasing Joint Ventures

Zhong Lun Law Firm

With China's WTO accession, many multinational financial institutions and leasing companies are looking to the PRC financial leasing market, and are seeking new direct investment opportunities in China. Although the first financial leasing joint venture, China Orient Leasing Co., Ltd, a Sino-Japanese venture, was set up in 1981, the sector is poorly developed and foreign-invested leasing companies have not fared very well in China.

The Administration of the Examination and Approval of Foreign-funded Leasing Companies Tentative Procedures (the Tentative Procedures, promulgated in August 2001) divide foreign-invested leasing companies into financial and non-financial leasing companies, and provides the requirements and administrative procedures for establishing both types of entities.