On September 23, the National Financial Regulatory Administration (NFRA) released the Administrative Measures for Financial Leasing Companies (the "Measures"), which will take effect on November 1, 2024.

The Measures consist of nine chapters, with the main revisions including: (1) modifying and improving the system for major contributors; (2) enhancing the regulatory classification for business operations; (3) strengthening oversight of corporate governance; (4) reinforcing the risk management; (5) regulating foreign-related financing leasing business; and (6) refining rules for business operations. Notably, the Measures increase the minimum registered capital requirement for financial leasing companies to bolster their risk resilience; they also introduce three new types of major contributors: state-owned capital investment and operation companies, state-owned financial capital investment and operation companies, and overseas manufacturing enterprises. Additionally, the market access criteria for major contributors, covering total assets, operating income, and registered capital, as well as the minimum shareholding ratios, are appropriately raised to enhance shareholders' responsibilities of major contributors.

(Source: National Financial Regulatory Administration)