People's Bank of China and China Banking Regulatory Commission, Announcement [2009] No.14

Issued: August 18 2009

Applicability: Matters not covered in this Announcement shall be handled in accordance with the Measures for the Administration of the Issuance of Financial Bonds on the Interbank Bond Market and the relevant provisions of the China Banking Regulatory Commission (Article 13).

Main contents: To issue financial bonds, lease financing companies shall have a registered capital of at least Rmb500 million or the equivalent in freely convertible currencies; and auto finance companies shall have a registered capital of at least Rmb800 million or the equivalent in freely convertible currencies (Article 4). After the issue of financial bonds, the capital adequacy ratios of the lease finance companies and auto finance companies shall be at least 8% (Article 5).

Related legislation: PRC People's Bank of China Law (Revised), Dec 27 2003, CLP 2004 No.1 p.4; PRC Banking Regulation Law (Revised), Oct 31 2006; Measures for the Administration of the Issuance of Financial Bonds on the Interbank Bond Market, Apr 27 2005; Measures for the Administration of Lease Financing Companies, Jan 23 2007, CLP 2007 No.6 p.65; and Measures for the Administration of Auto Finance Companies, Jan 24 2008, CLP 2008 No.3 p.47