On December 12, 2024, the Management Committee of the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as Lin-gang Special Area) officially issued the “Notice on Issuing Several Measures for Promoting the High-Quality Development of the Financial Leasing Industry in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone”. This notice aims to promote the high-quality development of the financial leasing industry and enhance the competitiveness of the Lin-gang Special Area in both the national and global financial leasing sectors. The measures cover support scope, main support measures, and implementation details, aiming to create a more favorable development environment for financial leasing companies.
Highlights
Support Scope
The measures apply to financial leasing enterprises that align with the special economic functions of the Lin-gang Special Area, including specialized leasing companies and their subsidiaries, both domestic and foreign.
Main Support Measures
Optimizing the Business Environment: Accelerate the competitiveness of the financial leasing industry, establish a one-stop service platform, and create a cross-departmental coordination mechanism.
Supporting Market Entities: Encourage stable operations and high-quality development of leasing enterprises, providing financial support and policy incentives.
Serving Key Industries: Focus on civil aviation, medical equipment, and green leasing, offering special rewards and support.
Developing Unique Business Models: Promote innovation in cross-border and offshore leasing, encouraging the use of RMB for settlements.
Building a Complete Industry Ecosystem: Support the construction of financial leasing asset transfer centers to facilitate coordinated development across the entire industry chain.
Implementation Timeline
These measures will take effect on January 1, 2025, and remain valid until December 31, 2028.
Observations
With the rapid development of the financial leasing industry, especially during the economic recovery phase post-pandemic, this sector has provided flexible financing solutions for various enterprises. The Lin-gang Special Area, as a national-level economic special zone, offers a series of measures that will provide policy support and market opportunities for the high-quality development of the financial leasing industry.
However, the effectiveness of these policies will depend on the changing market environment. The current financial leasing market is highly competitive, and enterprises need to flexibly utilize policy resources in conjunction with their development characteristics to gain an advantage. Additionally, talent shortages remain a bottleneck for industry development, making the recruitment and training of high-quality talent crucial for enhancing innovation capabilities and market competitiveness.
Suggestions
Proactively Engage with Policies
Financial leasing enterprises should closely monitor policy dynamics, actively communicate with government departments, and leverage policy advantages to enhance their competitiveness.
Strengthen Financial Cooperation
Encourage financial leasing companies to establish strong partnerships with banks and other financial institutions to jointly develop market-oriented financial products that improve financing efficiency.
Cultivate and Attract Talent
Enterprises should emphasize talent recruitment and training, establishing comprehensive training mechanisms to enhance employee expertise and support sustainable business development.
Expand International Markets
Actively utilize policy advantages to explore international markets, particularly under the “Belt and Road Initiative,” to strengthen your company’s international operational capabilities.
By proactively leveraging these policy measures, financial leasing enterprises can strengthen their market position, drive innovation, and enhance long-term sustainability. Close engagement with regulatory frameworks, strategic financial partnerships, and a focus on talent development will be key to navigating the evolving landscape of the financial leasing industry. Additionally, expanding into international markets—particularly within the framework of the Belt and Road Initiative—will enable enterprises to capitalize on new growth opportunities while reinforcing their global competitiveness.
With the Lin-gang Special Area positioning itself as a hub for high-quality financial services, the implementation of these measures is expected to foster a more dynamic and resilient financial leasing ecosystem. The success of these initiatives will depend not only on policy support but also on the agility and strategic foresight of industry participants. By aligning business strategies with emerging market trends and regulatory advancements, financial leasing companies can play a pivotal role in accelerating economic transformation and driving sustainable growth in the region.
