Big state-owned lender Bank of China (BOC) has just announced that it has obtained approval for the establishment of a financial leasing vehicle in the central Chinese mega-city of Chongqing.
BOC said that it had obtained approval from the China Banking and Insurance Regulatory Commission for the establishment of BOC Financial Leasing Co., Ltd. (中银金融租赁有限公司) – a first-tier share-controlled subsidiary with registered capital of 10.8 billion yuan.
BOC Financial Leasing’s registered address will be in Chongqing, and BOC will hold an equity stake of 92.59%.
BOC said that the establishment of BOC Financial Leasing will satisfy the diversified financial services needs of customers, and be of benefit to raising its integrated financial services level.
BOC Financial Leasing’s Business scope will encompass financial leasing operations, transfer and acceptance of financial leasing assets, fixed income securities investment operations, accepting the lease guarantees of lessees, accepting fixed deposits of non-bank shareholders of over three months interbank loans, taking loans from financial institutions, offshore borrowing, sale and disposal of leased goods and economic consulting.
BOC already has a financial leasing subsidiary in the form of BOC Aviation (中银航空租赁公司), which mainly engages in leasing operations in relation to aviation equipment.
BOC Aviation is registered in Singapore and listed on the Hong Kong Stock Exchange, and posted net profits of USD$702 million in 2019.
BOC is nonetheless the last of the big five state-owned banks in China to establish its own dedicated financing leasing subsidiary, after ICBC, Bank of Communications, China Construction Bank and Agricultural Bank of China.