Draft law to support aero-leasing industry
By Xin Dingding (China Daily)
Updated: 2006-09-21 14:02 Authorities are making efforts to create
favourable conditions for the development of the aero-leasing industry in China,
officials said.
The new draft of the Financial Leasing Law is ready for a second round of
consultation, said Guo Shuyan, vice-chairman of the Financial & Economic
Committee under the National People's Congress.
The draft follows international guidelines and "promotes banks investing in
the industry," said Guo, leader of the work group on the law, at the China
Aero-leasing Summit 2006 in Beijing yesterday.
More than 60 per cent of China's civil aviation fleet, which reached 940
airplanes by the end of August, were acquired through financial leasing.
In the past, China forbade bank capital in the business, because the
financial leasing industry shoulders much higher capital risks than any other
industry.
However, the old rule has hindered the industry's
development in China, where the annual financial leasing volume is less than 1
per cent that of the United States'.
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